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Posts posted by bootfair

  1. Well this is what I'm thinking, if they sell back the assets at a low price, then the plan to suck back the QE money won't work... there will still be the cash in the system... the difference between what they bought it for and what they can sell it for will still be sloshing around in the system won't it...

    It doesn't sound so cunning to me....

    Buy high, sell low?

    Surely they have to perform at a level greater than 0?

    Clever old bankers. Rip you off on a car and then buy it back from you for less than the scrap value.

  2. The cunning plan, outlined in more detail in the paper version of the mail states the Bank will "easily" avoid inflation by reselling the "financial assets" that the Bank will buy via Quantitative Easing, "BACK TO THE PRIVATE SECTOR".

    Now can someone tell me why, having dumped these "financial assets" on the tax payer, for much more than they were worth, and now breathing a huge sigh of relief, the PRIVATE sector would want to buy them back, ever, even in the glimmer of hope of a recovery.

    Im sure, as a financial illiterate I am missing something..can someone please reassure me there is no fatal flaw in Mr Beans Cunning Plan to avoid inflation.

    QUOTE: (ONLINE VERSION) Writing in the Daily Mail, Deputy Governor Charlie Bean says the Bank will 'easily' be able to prevent a new bout of runaway price rises by reselling the assets it plans to buy with the fresh cash.

    'As the economy recovers, so we will probably need to remove some of the extra money in order to ensure that inflation does not pick up too much,' he says.


  3. Sorry but can I just say

    HA HA HA HA HA...

    the same AVIVA that took over Resolution Phoenix? and Norwich Union...

    That have paid me £35 bonus on £500 per year investment...

    That promised us some of the money back, if only we hang on...

    actually gave some money to NU holders = so long as they signed away their rights to future profits....

    And now despite all their lossses are still going to pay the full dividend to shareholders... so I wonder who will bear the brunt of that again, not the silly old policy holders again surely....

    :lol: :lol:

    Cashed out of them in October...

    Thanks HPC.

    Good RIddance Aviva!


    This is a bit worrying. Corp bond market to implode ?

  4. Hopefully people will realise the fatal flaw with trying to get anywhere on "imaginary petrol".

    Lets hope in 6 months time they are not telling us how we can fill our stomachs on "imaginary food"...

    I cannot believe how pathetic this BBC video at describing how quantitative easing is supposed to work.

    It features a reporter with a presenting style usually reserved for pre-school children television.

    He is dressed as a mechanic, leaning over the the engine of a car, as if somehow QE and economics is related to how a car engine works. I am all for simplifying complex economic ideas by using analogies to get across the concept, but I just don't see the connection.

    His manner of communication, seems to portray QE as a common economic tool that is used to fix economic problems, like a pump being used to inflate a deflated tyre, and that those who use such tools know precisely what they are doing. There are no ill consequences and no moral hazards to consider "its like filling up a petrol tank with imaginary petrol" Yes he actually said that.


  5. Well from the ground here, there has been a full page "sell your scrap gold to us" ad in the local rag for about a month (maybe more) now.

    There is a stall set up in the shopping centre to take it...

    And one very surreal experience on late night TV a few months ago - an advert to buy scrap gold.

    Of course, these people are probably underpaying for it. Perhaps just taking advantage of people desperate for a bit of cash.

    But, if true, what would a huge scrap market do to POG long term. Will miners decrease production, or go out of production, leading (eventually) to higher prices? Or will the scrap flood the market bringing POG down?

    EDITED TO ADD: Coincidentally programme is about to start about "Gold Parties" held in homes in California... "Turning away from stocks and shares Americans are now trading trinkets with each other" - World Today on World Service 4:10 am....ish...

    From Lemetropolecafe ...

    "European gold refiners are being overwhelmed by scrap sales from Asian and Middle Eastern jewellery owners, who are cashing in on the surge in gold prices. Scrap gold sales of jewelry and old gold bars now outweigh demand for coins, new gold bars, and gold exchange-traded funds… Michael Kempinski, a trader at Commerzbank, which has a 35% stake in Argor Heraeus SA, another large European gold refiner, said the amount of scrap the refiner is taking in is "huge."

    Facts or media pressure being put on gold?

  6. I'm with EDM on this, a couple a weeks a least - (But I disagree with the possible low of $480...)

    But for different reasons..Yesterday/Today big losses in the markets. Gold being sold to cover those and also in sheer panic I think...no-one wants to let money leave their hands today...

    ..after that, with their Pensions and incomes utterly destroyed who is going to want to dabble in stocks for a long while..

    Now of course China, Russia (the commodity online page has links to an article claiming Russia are looking to increase reserves) eclipse the little man on the street...but there is also a lot of little men on that street..

    This is, of course, the financially illiterate interpretation of things..

    total guess - gold back up to $950 easily within 2 weeks, no lower than $800.

    Advice to be taken only if you want to be as poor as me :lol:


  7. Marks out of 10 for how well they performed showing people round.

    What is wrong with people, Why oh why oh why do they want to be patronised by some tit off the telly..

    Ahhh Now I remember them advertising for an EA type person for a program presenter job...

    Presumably they couldn't find the helicopter pilot - or will that be the next show?

  8. A bit OT but these are giving 6% 1yr fixed on a current account up to £2,500 balance. After that i think its quite a small interest rate paid...

    Plus £100 if you switch direct debits...(as long as you are not currently/recently a Santander customer)

    You have to have transactional activity of £500 per month - ie you can put £500 in and take it out again so you don't go over the £2,5k for too long. this activity does not all have to be in one go, so long as there is a £500 movement in your account each month...

    You lose £5 for any month you forget to do this (oops!)


    As always, DYOR, this post is for entertainment purposes only and does not constitute endorsement for any product, or financial advice... :P

  9. Thanks, like all good stories then, the one above has a base in truth, but the article is about ordinary citizens buying gold, which they traditionally do anyway, hmmm still a long way from the Chinese gvt buying gold to back their currency.

    However, the Chinese are well into assets. While we were flogging financial services, they were building factories..my (financially illiterate) gut feeling says they will not want to "race to the bottom" in a global new deal (apparently the global New World Order is postponed now in favour of the friendlier sounding Global New Deal...)

  10. :lol::lol: oh well gotta hand it to them, is a cut above the usual ramping story.

    OK, right. A couple of things with this:

    1. The story is quite obviously untrue. There is no way that a "director of one of the largest bullion dealers in the US" would divulge that information unless he wanted to lose his biggest client in a flash, and possibly his business as well. Really, take it from me - if a central bank or SWF (or any other custmoer) ever finds out that you are giving away confidential information, you don't last long in the business.

    2. Even if he had said that then this story is quite obviously untrue. No one commits to buying something in the future without knowing the price, it would be writing a blank cheque. If, on the other hand, he is referring to China buying gold now for future delivery, that is a different thing - but all it means is that China has bought some gold.

    So, this story is a complete fabrication, either by HB or by the guy he is citing: Don't believe it.

  11. It was Housing Bear - in reply to you, thats where i got confused: Ive edited original post to make it clear it wasn't you said it.

    Housing Bear said: Well said, EDM! I spent yesterday evening with the director of one of the largest bullion dealers in the US. The main buyers of gold, at the moment, are central banks of China and Russia. China wants a gold backed currency and is committed to buy tonnes of gold for many years. This is no specualtive bubble, as some seem to suggest. This is mainly large central banks buying gold with cash, not for speculative purposes, but to support their currencies! Best wishes. HB.

    No problem - very easily done.
  12. I read all your arguments on Bonds...as someone with no previous interest of knowlege of economics/finance it was extremely helpful.

    But it appears to me that the inflation index the returns are based on is too flexible, and does not neccesarily reflect inflation as we might experience it on the ground.. ie the Bonds might well protect against inflation in car stereos, but not neccessarily the more essential bags of rice...

    However in that thread, you stated that you spoke to a Bullion dealer who says China is buying up massses of gold to back their currency, and this is also the case with some other places...

    For gods sake someone tell the Chinese they need to get bonds!

    When people in the street start talking, and stalls in shopping centres are set up to buy scrap gold...

    As you say at this point the fundamentals don't really matter... same as house prices.. once the herd get going the price will go up, just as you also say, may go down very very quickly too...

    everyone is spooked... :ph34r:

    EDITED TO ADD: EDM did not say he spoke to a Bullion dealer..it was another poster. My bad..

  13. you can check daily the gold holdings report from the vaults. The vaults are all run by separate company...which is based in Switzerland, its Brinks Via I think having been changed from Brinks Mat, due to concerns about them being based in US

    The individual holders, as well as having their own account can also look up the holdings allocated to them personally as reported by the Vault. This holding reported only in their chosen nickname is public so if you wanted you could add up all the individual holdings in a vault, and check them against the daily vault report.

    Any money in the account goes through Lloyds. BV make it very plain that your Property is your gold and cannot be touched, your assets is your cash and is subject to the bank.

    BV claim to have capitalised themselves so that they can operate for 4 years without any revenue at all.

    This question has probably been done to death on the many gold threads but who regulates BullionVault? What level of confidence can you have that it's not run as a partial ponzi scheme?
  14. No, because I was saying 50% share , and I didnt' want to argue with someone saying, no I don't hoover/cook/clean/shop/clean up puke but I DO mow the lawn..

    Not because it's "mens' work" but simply because mowing the lawn and washing the car once a week does not equate to a 50% share of the housework.

    No one said mowing the lawn and doing the garden is "mens" work, I do both those, and more, myself! But if 2 people work full time then mowing the lawn and thinking thats it, doesnt cut it..

    But your example is of women working part time - I was talking solely about women who work FULL time..

    Yes obviously if one person works less hours than the other they can take on more of the duties!

    As for being up a ladder, you make me laugh!! I fixed up my last place on my own.

    Hmm! A fairly typical female take on things; cutting the grass and washing the car apparently doesn't qualify as work? Er, why not? Is it because it's not something females usually do.

    In my experience men work every bit as hard as women and in many cases harder. Most of the women with kids I know of do most of the housework and more of the childcare. There is a simple reason for this though which is rarely mentioned in those vapid articles designed to get women going that you read in the press - they work considerably less hours than men on average. Indeed, every single woman I know who has school age kids works part-time while hubby works long hours often with commuting. This is also most of the reason for the supposed pay inequality - men simply work longer hours than women so they get paid more.

    Men have taken on more and more domestic duties over the years and it does surprise me how many women think they should be doing 50% of these tasks despite working an extra 25 hours a week and bringing in most of the dosh. Also, I have seen almost no evidence of women taking on some of the more traditional male tasks - the same ones which you think are not work and don't count.

    Anybody ever seen a woman up a ladder? :lol:


  15. Good for you (and your wife).. Although it hasn't been unknown for men to think they're doing half, but the women to disagree...

    Essentially though we are coming from the same place here... I totally agree its an oversold dream that has actually destroyed choice for many people.

    Erm, I do 50% of the work around the house, and I am a man. A large portion of the men I know with working wives do too. Wouldn't it not be better for all if life required only one salary? I know Miss D'oh and I have been significantly happier in times when only one of us has been working. Furthermore, since 2 wages has become the norm, single salary households have been priced out of decent housing simply because the extra wages go into land values. No one has benefitted from this other than the land owners.
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