It is as predicted by this Blog, as well as many other more distinguished economic authorities, house price inflation is now, once again, out of control. This is entirely the fault of the Government, who instituted policies which could only lead to this outcome, but it is the responsibility of the Bank of England to put a stop to it. It has the powers, it must act, and must be heard and seen to act. Talking about it on TV chat shows is not acting and whispering in dark City corridors is neither acting nor being seen to act.
Failure to do so by the Bank will let the Government think it has got away with this illusory form of economic regeneration in the hope that a feel good factor will give them victory in 2015, before the crash comes, as come it will. Issuing warnings is not action and it is not enough; the situation is now critical and it must not get beyond recall.