Comments on: If the UK economy is still in recession, why are London house prices hitting new records? http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html#comment-57394 Edward Harrison Fri, 23 Oct 2009 13:44:00 +0000 http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html#comment-57394 Stevie b., that's exactly right. Glass-Steagall like separation may not be the way forward (I don't think it is), but the concept that one needs lax regulation because that's what everyone else has is ludicrous. Stevie b., that’s exactly right. Glass-Steagall like separation may not be the way forward (I don’t think it is), but the concept that one needs lax regulation because that’s what everyone else has is ludicrous.

]]> By: stevie b. http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html#comment-57393 stevie b. Fri, 23 Oct 2009 13:13:00 +0000 http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html#comment-57393 Ed - Griffiths is a toss-pot. The property market in London in particular represents the effects of a weak currency/low rates, high-end anicipatory pull from mega-moronic-bonuses and the fact that Crash-Gordon will do anything to attempt to get re-elected next year. Minimally off-topic perhaps, but what we need in the UK is the following from the Daily Telegraph blog of Jeremy Warner yesterday: "Mervyn King’s suggestion that some kind of a Glass-Steagall like seperation of utility and high risk investment banking be enforced as a way of dealing with the “too big or important to fail” problem (see my column in this morning’s Daily Telegraph) may or may not have intellectual merit, but by common agreement in the Government and the banking industry, Britain would be mad to embark on such a course alone. To do so, say critics, would crucify London’s competitiveness as a financial centre. Wrong and wrong again. In fact it would greatly enhance the City’s long term comparative advantage. To argue that Britain should not be taking unilateral action to restore stable and sound finance is a bit like saying that if others have lax regulation, then you too should have lax regulation. The evidence is to the contrary. Sound regulation will enhance the competitiveness of a financial centre by making it more trustworthy to international finance." Ed – Griffiths is a toss-pot. The property market in London in particular represents the effects of a weak currency/low rates, high-end anicipatory pull from mega-moronic-bonuses and the fact that Crash-Gordon will do anything to attempt to get re-elected next year.

Minimally off-topic perhaps, but what we need in the UK is the following from the Daily Telegraph blog of Jeremy Warner yesterday:

“Mervyn King’s suggestion that some kind of a Glass-Steagall like seperation of utility and high risk investment banking be enforced as a way of dealing with the “too big or important to fail” problem (see my column in this morning’s Daily Telegraph) may or may not have intellectual merit, but by common agreement in the Government and the banking industry, Britain would be mad to embark on such a course alone. To do so, say critics, would crucify London’s competitiveness as a financial centre. Wrong and wrong again.

In fact it would greatly enhance the City’s long term comparative advantage. To argue that Britain should not be taking unilateral action to restore stable and sound finance is a bit like saying that if others have lax regulation, then you too should have lax regulation. The evidence is to the contrary. Sound regulation will enhance the competitiveness of a financial centre by making it more trustworthy to international finance.”

]]> By: Anonymous http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html#comment-57392 Anonymous Fri, 23 Oct 2009 12:53:00 +0000 http://www.creditwritedowns.com/2009/10/if-the-uk-economy-is-still-in-recession-why-are-london-house-prices-hitting-new-records.html#comment-57392 "This is an argument for good times, not recession – and even then one must question whether large bonuses in the financial sector are truly in the medium-term common good." Probably not. But since when is the first purpose of a bank or any other business in capitalism whatsoever to serve the "common good"? The first purpose is to make money for its owners/investors. And what is the "common good" supposed to be, anyway? It's quite an empty term. rc “This is an argument for good times, not recession – and even then one must question whether large bonuses in the financial sector are truly in the medium-term common good.”

Probably not. But since when is the first purpose of a bank or any other business in capitalism whatsoever to serve the “common good”? The first purpose is to make money for its owners/investors. And what is the “common good” supposed to be, anyway? It’s quite an empty term.

rc

]]>