Readers of the Bank of England MPC minutes will know that their length tends to be directly proportionate to the amount of turmoil in the financial markets. When they get to a dozen pages as they did for the June meeting you know we are in for a bumpy ride! In looking at the sickly Housing Market the Committee having noted the continuing weakness in lending and low volume of transactions unsurprisingly concluded that it was the lack of availability of mortgage funding that was the immediate problem. With the patient’s vital signs barely holding up a sizeable minority of the Committee including Governor Mervyn King voted for another cash transfusion in the form of Quantitative Easing. Transfusions are all well and good if they stabilise the patient so you can treat the underlying illness, however, four years into the crisis the underlying disease of too much debt has still to be addressed. It seems the Housing Market along with the rest of the economy will be in intensive care for some time yet. Whilst the prognosis is for a recovery to more normal health it is unlikely that we will ever see a return to the level of activity experienced in the run up to the credit crunch. Those reluctant to do a deal at present because they fear they will miss out when things improve may be forced to reassess their situation.