Um_Bongo

Problem: Lax rules lead to huge boom and bust? Solution: Relax the rules!! Are we on the verge of a crack up boom? "But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears."

DB was begging for ZIRP during the biggest debt binge in history - he would have asked for printing back then too if he thought he could get away with it.

This tells you more about the incompetence of the FSA then anything else.

Chuff me! There's a Pirate sat next to him.

So we should short hotels?

Unemployment starting to have a wider effect on the economy, who'd of thunk!

Let's not forget how right Blanchflower was. If we had of reduced the base rate to zero during the debt fueled boom years we wouldn't be in this mess!

It turns out that the BNP has forced the politicians of the three main parties to claim these expenses to make the BNP look good. Please don't vote for the BNP (or any other party which isn't one of the main ones).

"Bill De Berger"

http://www.google.co.uk/finance?q=INDEXFTSE:.FTSE Look at the last 3 months and check the date of the lowest point. http://www.guardian.co.uk/business/2009/ma...titative-easing Cross reference with the date in the above url. http://www.google.co.uk/finance?catid=58211593 Again look at the last 3 months for the financial sector whilst thinking about who gets to use the newly printed money first (before the effects of devaluation). Drag the graph so that the 1st day starts on 6th March

When does he get appointed to the MPC?

Has he been injected with Blair DNA?

I can't wait for the day we have both deflation AND higher house prices. The BBC will drown itself in its own jiz!

An interesting comparison between Japan's bust and the US response to the current bust: http://themessthatgreenspanmade.blogspot.c...-and-in-us.html

Is a deflationary spiral possible without a decrease in the money supply? If so how? Can anyone point out a real world example of one?

If we get deflation (which is what should happen), it really will collapse the entire financial system -it will multiply the effect of the bad debt out there and will not be allowed to happen. They will keep printing and printing until it has an effect - which will be beyond a tipping point.

I was going to suggest Kirsty Allsop, but then I realised she isn't a corporation.

K.I.S.S.

Another relevant article: http://www.telegraph.co.uk/news/newstopics...e-cucumber.html

Wow, it's also sarcastic: http://www.telegraph.co.uk/news/newstopics...eat-leader.html

I think 90%'ers would say they are predicting in real terms. Are you assuming 0% inflation for the next decade? Average prices in 5 years could still be £160K yet register as a 90% drop from peak.

Do you have anything to discuss about the article rather than attacking the author?

Surely ramping interest rates up to 8% back in 2004/5 would have been cheaper?

Then the fed will see their actions had no effect and do it again and again and again until someone comes along with a bulldozer.

So they are purposely going to hunt down people who have been refused credit and offer them a mortgage? This by its very definition is subprime lending!!