LoCarb

Yep. John Key was on his high-horse 8 years ago about the cost of housing and what National would do to make it affordable again (after blaming Labour I suppose).

But he did nothing, left it to the Reserve Bank Governor to finally attempt putting a lid on it.

My opinion: too many investors in the market.

Did I read somewhere that the British Govt. are putting restrictions on Buy-to-Lets?

LoCarb

I can see you are of the opinion that banks lend out deposits.... hmm.

Obviously of the Paul Krugman persuasion.

Charismatic

Guess we'll find out shortly if deposits keep falling but lending isn't curtailed I'm wrong.

LoCarb

Bank of England: Money creation in the modern economy.

Money creation in practice differs from some popular misconceptions — banks do not act simply
as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’
central bank money to create new loans and deposits

http://www.bankofengland.co.uk/publi...eycreation.pdf


Also:

Bank of England: Banks are not intermediaries of loanable funds - and why this matters.

http://www.bankofengland.co.uk/resea...15/wp529.aspx#