Friday, Jun 11, 2010
Per Rose Royce - We are wishing on a star.
EWI: Legislated Deflation; Government is the ultimate crowd.
Same old same old.... but here because
"Politicians assume there is some "magical" interest rate at which lending will resume. But just like the misguided policies to support real estate values (which will only recover when prices have declined enough to represent a reasonable multiple of average income, rather than the fantasy valuations created by low interest rates and a lax lending regulations), supporting overleveraged banks or creating new debt to support the old debt won't solve Europe's credit crunch."
Posted by techieman @ 03:49 PM (786 views) Add Comment
3 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
1. techieman said...
see http://www.housepricecrash.co.uk/newsblog/2007/10/blog-its-a-bloodbath-across-the-pond-7688.php
"4. Techieman said...
cut the rates, cut the rates, hmmmm will we get to the stage when we are "pushing on a string"? Friday, October 26, 2007 10:49AM"
Daddy - are we there yet??
2. bluebeach said...
Perxactly techo.......
pawpaws Senator
3. quiet guy said...
Techieman,
"Government is the ultimate crowd; every decision being made by committee. It is always acting on the last trend, the one that is already over ... we are promised a new set of financial reforms that will control systemic risks once and for all. Somehow, I believe that history will prove this legislation has missed the mark, as well."
To push the idea a little further; if we currently have central banks fighting deflation then might the inflationistas have their ideas confirmed in the future? That would fit the trend of reacting to the last problem.
(sorry - no useful predictions from me about inflation)