Here's your answer, Mr Weale (see lib's post)

Zero Hedge: Chief economist (of BIS): (QE) is extremely dangerous

Ex-BIS man says QE was meant to get seized-up markets going again but that aim has morphed into inflating asset prices to get people to spend (or is it to make the rich richer?). But QE doesn't tackle the excessive debt that caused the problem in the first place. The solution to that is write-offs, restructuring, recapitalisation. But QE is la la land where nobody needs to do anything while big problems stack up unseen - mainly zombies which suck the life out of the healthy parts of the economy. And it's worse than 2007 because emerging economies have been sucked in to the world of debt/liquidity-driven bubbles. And moral hazard is now worse among bankers. He says that Japan is in a particularly bad place and that "(with QE) housing tends to be the big thing that goes wrong".

Posted by icarus @ 11:12 AM 8 Comments

Friday, Apr 18, 2014

Quantitative Easing destroyed £150bn from economy

Telegraph: QE has boosted UK growth by 3pc, says Martin Weale

Reporters are inanely stating that QE boosted the economy by £50bn without covering the other half of the equation. The government spent £200bn on QE to get £50bn growth. For that price, they could have eliminated corporation tax (£51bn) and income tax (£155bn) for a whole year, or slashed both by 10% for a decade, and guess what, that would have created TRILLIONS in growth, with almost every corporation in the planet moving to head quarter Britain. What actually happened was, that they destroyed the economy to give £50bn to their buddies. This is called artificial scarcity, or neo-feudalism.

Posted by libertas @ 09:36 PM 0 Comments

Thursday, Apr 17, 2014

Time to short GBP/USD?

JonathanDavis: Interest rates are NOT rising!!!

Rates rose last year so, apparently, everyone jumped on the short term bandwagon and decided that the multi-decade trend had suddenly changed. Somewhat prematurely in our view. So the rate rose last year and the media and City pundits went wild announcing the death of the 40 year fall in rates and so, they said, we must expect higher and higher rates in the future. I have news for you: if rates rise then the Western economy is – to put it highly technically toast! So, if the rate at which the government borrows was to rise from, say, 3.5% to 4% – a mere 0.5% rise – this would increase the Government’s interest bill by £7 Billions pa. How would it pay for it? £7Bns of cuts? That would play well with the electorate just as we are entering the final year before the next Election.

Posted by khards @ 03:45 PM 7 Comments

Wednesday, Apr 16, 2014

LibDims perform U-turn on Mansion Tax

Torygraph: One of the most destructive taxes of the past 40 years could soon be axed

A mansion tax would fatally undermine the concept of freehold property

Posted by landofconfusion @ 02:22 PM 12 Comments

Rent price crash: 6 months -3.387%

RentIndex: Average monthly rental figure for let residential property in England and Wales.

Average monthly rental figure for let residential property in England and Wales provided by propertyhawk Property Manager software providers. Rents are the lowest they have been since 2012 and trending downwards. Percentage change:12 months -1.767%, 6 months -3.387%, 3 months -1.859%, 1 month -0.314%

Posted by khards @ 01:23 PM 10 Comments

Has the housing bubble peaked?

MoneyWeek.com: Don'€™t speak too soon -€“ but the housing bubble may be peaking

House buyers are entitled to feel disgruntled at today's inflated prices. Dominic Frisby offers a ray of hope that an end to the madness may be in sight.

Posted by andrew.williams @ 10:42 AM 1 Comments

Good headline

Metro: Your home probably earns more than you: Property experts warn of a housing ‘super bubble’

The article is the same old stuff, but it's a good headline. That's the whole point of Home-Owner-Ism, to get other people to earn money for you and you siphon it off via the land market/mortgages (for the top one per cent), the Homey foot soldiers are being conned a bit because it's only a paper gain and they get tricked into MEWing. The bottom third (the young) are getting shafted by everybody else.

Posted by mark wadsworth @ 09:01 AM 12 Comments

Tuesday, Apr 15, 2014

Don't worry, this boom will be perfect

Evening Standard: Housing crisis overtakes transport as biggest concern for Londoners, poll suggests

House prices always go up forever.

Posted by sneaker @ 09:11 PM 18 Comments

It's a superbubble

Evening Standard: The housing bubble continues to swell

But if there is a shortage of supply, why are rents ... falling?

Posted by sneaker @ 09:11 PM 2 Comments

Frances O'Grady says a cost of living crisis remains

Sky: House Price Concern As Wider Inflation Eases

"Wage rises could be finally outstripping inflation for the first time in years though house price growth continues apace". ( NOTE KEYWORD: could).

Posted by alan @ 03:54 PM 3 Comments

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