Ok, a bit of bulldog spirit in the headline but we are once again at the forefront of the current situations playing out in the US and Europe.

Whether the BOE have acted early enough is open to debate but the fact that they are acting now in a positive way towards potential risks is encouraging for those of us in the UK.

Will there be people adversely affected by these moves? Of course. There are always people who are caught up in middle. There will never be a tool or a policy that gets it 100% right. It’s always a case of getting closer to right than wrong.

Caps on LTI’s and borrower stress tests are music to my ears. Those of us who have been discussing the housing market on this site know that the population is in for a rude awakening when rates start to rise. Acting now is probably too little too late ahead of the expected rate hikes but even so it’s a start and past any near term pain, should eventually lead to a more stable financial position for people in general

Many will moan if they fail the stress test and can’t get on the housing ladder but you know what, that’s good. So what if people have to spend a few more years with mummykins if the alternative is to borrow up to their eyeballs and then get creamed when rates rise, they lose their jobs or house prices crumble.

Domestically we are down to the nitty gritty of the recovery and just as the government has had to reform so will we have to individually. It’s going to be hard and it’s going to be painful but it needs to be done if we are going to have a chance of finally exiting from the crisis and being in a better state than we were before.

For the economy in the long run this is bullish action. It’s not something that’s going to equate into a 1000 pip pop in cable but it’s another part of the foundation being built under the recovery.

We are the blueprint for the major recovering economies as all economies share the same intrinsic patterns. The US could see the same risks arising from housing and wages, as could Europe, and what happens in the UK can be a gauge of what to look for and how to address the risks.

We moaned when governments and central banks didn’t do enough to forecast and stop the crisis so we can’t really complain when they try to stop it happening again, no matter how much their actions in the short term might hurt us now.