“Mark Carney named new Bank of England governor” – Guardian, 26 Nov 2012, 16.28 GMT [Hat-tip Aldous Huxtable and proteus]
Interesting, but not something that should affect the predicament of the Vancouver RE market.*
Carney is clearly very smart and very competent, so congratulations to him for the promotion, and we and most other Canadians would wish him well with the new job.
At the same time, the appointment is likely the result of larger, arguably ironic, forces: Canada’s accounts have appeared stronger because our debt spending (and closely related housing bubble) has not yet reached its inevitable crisis point. This delay is not Carney’s doing directly, there are too many forces at play to believe that, but he has been part of it. Canada and Carney haven’t by any means actually solved the problem, and have yet to deal with the unwinding. Household debt is at nosebleed levels, and there are clear speculative manias in housing in all major centres. The delay in reconciliation has given the false appearance of strength in Canadian fiscal governance. The UK has quite simply chosen a new BOE governor who looks strong because he’s from a place where the debt bubble hasn’t yet burst.
* – There is a possibility that this will effect sentiment. The BOC will obviously now rush to assure us it has firm hands on the tiller. It also may, interestingly enough, end up as another erroneous ’cause’ for the coming housing collapse, as in “Mark Carney leaving caused the housing market to crash”.