Friday, Sep 03, 2010
Quick! Get the printing press fired up, house prices are falling!
FT.com: Investors’ QE concern rises
Investors gave warning on Thursday that the Bank of England might be forced to pump more money into the economy as fears grew of a double-dip recession.
A string of weaker-than-expected figures, including Nationwide’s data on house prices on Thursday and a survey of construction activity, has increased the possibility of a relaunch of quantitative easing, the buying of government bonds to stimulate the ailing UK economy.
Posted by khards @ 10:32 AM (1435 views) Add Comment
11 Comments
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1. khards said...
Try this link:
http://www.google.com/#q=Investors’+QE+concern+rises
2. Harley said...
Get ready. BoE and the gov will do anything they can to prop up house prices, otherwise where is all the wealth? Bring on some rampant inflation in the meantime to erode responsible people's savings.
3. khards said...
If the US resumes QE do you think that the UK will follow?
Any thoughts on this?
4. hpwatcher said...
Like some other things, it's a lot easier to stop once it's been started. After 10 years, Japan is still doing it with little clear benefits.
5. hpwatcher said...
Sorry, *NOT* so easy to stop once it's been started.
Damn this keyboard and my brain!
6. khards said...
Is the decision to restart QE entirely up to the BOE committee ?
7. alan said...
Watch the gold price..... its currently $1250.
If QE makes a big comeback it will probably add another $100, going to record levels.
Its amazing that house prices are always mentioned alongside economic growth and recession information. I don't see houses as an economic indicator, its just money tied up in a place to live (unless you are a speculator, of course).
8. sj032 said...
Khards,
As far as I know it is entirely up the the BOE committee. No doubt the big banks in Canary Wharf are the big administrators in whitehall are getting their arguments/influence across as per usual, but the buck stops with the MPC.
PS: Do not underestimate however, the influence these bankers and politicians have on the MPC.
9. uncle tom said...
"If the US resumes QE do you think that the UK will follow?"
If they do, it will all end in tears..
10. hpwatcher said...
If they do, it will all end in tears..
It's going to end in tears whatever the UK or US does.
11. thetidewillturn said...
Of course we will see QE2 - our current politicians (of all parties) have no spine to take and implement difficult decisions and being elected for the short term, only think in the short term. I would be pleased to be proved wrong when the cuts are announced in October but if its anything like the "bonfire of Quangos" - which looks more like a damp rain sodden pile of leaves (all smoke and no flame) then we will continue as a country to spend more than we earn and "create" the difference to balance the books ad infenitum.
So just like Zimbabwe and 1920's Germany they will attempt to print their way out of trouble. Which is why I for the past 3 years (and many others more recently) have been using any spare cash to buy Gold coins with past monarchs heads on and silver coins with Lady Liberty's head on and have been passing on those pieces of toilet paper with the current Queens head on as fast as I can go.