Thursday, Jun 03, 2010

End of QE then??

Yahoo: Cable says early action on deficit essential

He stressed that the government was no longer in a position to boost the economy through fiscal stimulus. Instead, growth would have to come from the business sector and trade.
Cable said that in many cases, the most useful thing the government could do was to "get out of the way" of business.

Posted by mark @ 03:30 PM (2092 views) Add Comment

8 Comments

1. mander said...

Are Cable views really taken into consideration in that Government? Clegg said he is favouring the taper rule now for CGT after David Laws had to go.

It stinks.

Thursday, June 3, 2010 04:24PM Report Comment
 

2. mystie010 said...

Surely if they introduce taper relief then people will just sit tight on their properties until such time the higher rate of CGT does not affect them. Surely this is disastrous for a fully functioning housing market? This will mean less properties going onto the market which is just going to make the situation worse for people who are looking to buy a reasonably priced house? was howling was the words I needed to type in - you couldn't make it up could you?

Thursday, June 3, 2010 04:37PM Report Comment
 

3. icarus said...

"I have changed my views on this" = "I'm in government now". Does he explain where the demand is that will fuel private-sector investment and growth? "He called on banks to get credit flowing to SMEs" This is a broken record and doesn't resonate - banks don't want to lend more to SMEs. Not all banks are broke, but few want to lend more to SMEs. As I've pointed out before, big companies can get funding but they're showing few signs of wanting to rush in and take the business that "underfunded" SMEs are losing. They're losing business not because they can't find funding but because it's a bad recession.

Thursday, June 3, 2010 04:56PM Report Comment
 

4. Goldbug9999 said...

"demand is that will fuel private-sector investment and growth?"

By people having lower living costs (primarily housing costs) and therefore having more disposable income.

By exploiting economies of scale to reduce the cost of goods and services (which is essentially what "capitalism" is in its purest form - the use of capital to consolidate and increase the efficiency of production).

Our current brand of so-called capitalism which is basically an ever using an increasing money supply to create artificial demand and "economic growth" isnt the real thing - its a ponzi scheme.

Thursday, June 3, 2010 06:11PM Report Comment
 

5. paul said...

The bottom line is that there really is no money to throw at anything - housing market, public sector, enything. Seriously. This much I know to be a fact.

Thursday, June 3, 2010 08:39PM Report Comment
 

6. fallingbuzzard said...

They cant work out where to take money from. I'd put up CGT but maintain taper relief on productive assets, which excludes property

Friday, June 4, 2010 12:08AM Report Comment
 

7. stillthinking said...

Rather than have huge losses on speculative assets blow a big hole in the economy and banks, the plan would seem to be to grow the economy to such an extent that all these values are relatively modest. Economies don't grow that rapidly unfortunately.

I work somewhere with pretty much all customers abroad and they have had a bumper crop of orders, my docile coworkers hadn't thought of the fact that our price is down 20%(or whatever) along with our salaries, subsidised by savers who have no way of profiting from their "investment".

Friday, June 4, 2010 08:24AM Report Comment
 

8. This comment has been removed as it was found to be in breach of our Blog Policies.

 

Add comment

Username   Admin Password (optional)
Email Address
Comments
  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Main Blog | Archive | Add Article | Blog Policies