Tuesday, Sep 08, 2009

Oh no, here we go again.

UK Bubble: In August, QE hit the economy

The MSM failed to pick up on the fact that UK banks have begun using all that extra cash produced through quantitative easing. In August, reserve balance (bankers deposits at the Bank of England fell by 6 percent). Its most likely destination is new mortgage lending. It could be the beginning of a renewed housing bubble, which is of course, the primary objective of UK macroeconomic policy.
Why do we do this to ourselves?. Does the UK economy have to go through these repeated cycles of housing boom and bust? It seems so.

Posted by inflationwatch @ 12:24 AM (175 views) Add Comment

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