Has anyone else worked out that the collective attempts to improve housing market liquidity are doing more harm than good? The Bank of England is pouring money into the house financing system but somehow mortgage rates and mortgage approvals are falling. Why is this happening? My suspicions are that the big players in the financial world have had their day with housing and are using the liquidity provided to invest in commodity speculation. This way banks make a fast buck on rising prices of oil, wheat, rice etc causing massive inflation, whilst the housing market remains stuck.
After sub-prime, we now have alt A and toxic debt. Meanwhile the money meant to alleviate these problems is fuelling oil at $120 per barrel and diverting food from our tables to huge warehouses. It wasn't so long ago that we had grain mountains and wine lakes. The current apparent food shortages are created by aggressive financial speculation rather than any real break down in the world's ability to grow and distribute food.
No comments:
Post a Comment