Mark Carney, governor for the central Bank of England (BoE) spoke about mortgages to the British citizenry.
Carney told future British homeowners that with “higher interest rates” and “rising house prices”, a “property market bubble” could be waiting to burst.
The central bank head said : “Think about the mortgage you are taking on, the debts you are taking on. Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher?”
Because of this new trend of lowering the amount of actual homeowners in the UK, Carney has explained that they will no longer support abilities of people to get mortgages; but rather solely focus on only lending monies to businesses.
The Financial Policy Committee (FPC) at the BoE has the “powers to prevent a bubble” by recommending “to banks that they do not offer mortgage loans that are too large.”
Last month, the Federal Reserve Bank (FRB) warned financial institutions to reserve on-hand cash, government bonds and all highly rated assets to survive a severe economic “downturn.”
The FRB outlined essential “liquidity” requirements to ensure that cash can be assessed in an instant.
Ben Bernanke, chair of the FRB said: “Liquidity is essential to a bank’s viability and central to the smooth functioning of the financial system. [The new regime] would foster a more resilient and safer financial system in conjunction with other reforms.”
Nearly two months ago, the National Credit Union Administration (NCUA) initiated a suit against JP Morgan & Chase Co (JPM), Barclays, Goldman Sachs, Morgan Stanley, Royal Bank of Scotland (RBS), UBS, Wachovia, Ally Services and Credit Suisse – among other technocratic institutions for the financial manipulation of trillions of dollars.
The NCUA said that these banks conspired to purposefully rig the London Interbank Offered Rate (LIBOR) that controls the rates set for mortgages, car loans, student loans, credit cards and derivatives contracts.
The suit outlines $2.3 billion in mortgage-backed securities (MBS) that were misrepresented and used as a primary mechanism for profit as the housing bubble began to grow.
Loans were handled improperly, misrepresented by the banksters and sold as safe investments with the aid of rating agencies who resold those MBS that eventually fell into default and foreclosure.
Dan Berger, president and CEO of the National Association of Federal Credit Unions (NAFCU) said: “Credit unions are paying hefty assessments to cover the costs of the corporates’ losses on mortgage-backed securities, and we support NCUA’s efforts to seek recoveries from the responsible entities.”
With the artificial lowering of rates from January 2005 to December 2010, credit unions are now being liquidated by regulators.
Those credit unions that are part of the suit are:
• US Central Federal
• Western Corporate Federal
• Members United Corporate
• Southwest Corporate
• Constitution Corporate
The suit states that LIBOR quotes were used as indicators of the financial temperament of the markets and this manipulation enabled the banksters to “portray themselves to the marketplace as financially healthier and more liquid than they actually were.”
Debbie Matz, board chair of the NUCA said: “We have a responsibility to pursue recoveries through every available avenue against those who caused billions of dollars in losses to credit unions. Some firms were manipulating international interest rates in a way that cost the five corporates (credit unions) to lose millions of dollars.”Don't forget to Like Freedom Outpost on Facebook, Google Plus, & Twitter. You can also get Freedom Outpost delivered to your Amazon Kindle device here.