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Wimbledon88

Qe V Deleveraging

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It seems to be common consensus that America has embarked on a course of "Quantitative Easing" (aka printing, helicopters, etc) with their non-existent interest rates. But aren't the dollars being snaffled up in all the deleveraging that is going on and the flight to safety in the world's top safe-haven currency? So how does this square or am I maybe not seeing things correctly? Can anyone answer?

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Some more info:

http://www.marketoracle.co.uk/Article8308.html

The impression I get from several sources is that the deleveraging will outweigh any possible stimulus by orders of magnitude.

At an individuals level, if everyone had a mortgage of £100K, 50% equity and house prices halve as predicted, the powers that be would have to print £100K per person to replace that lost money. Thats in the quadrillions. (exagerrating a bit but you see the point).

VMR.

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Some more info:

http://www.marketoracle.co.uk/Article8308.html

The impression I get from several sources is that the deleveraging will outweigh any possible stimulus by orders of magnitude.

At an individuals level, if everyone had a mortgage of £100K, 50% equity and house prices halve as predicted, the powers that be would have to print £100K per person to replace that lost money. Thats in the quadrillions. (exagerrating a bit but you see the point).

VMR.

Hmmm and that excludes the equity lost in companies.

This is one large hole.

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Hmm, let's see, $2T of 'stimulus' versus $20T of debt (=money) destruction. I think they've got a lot of QEing to do yet before things get back into balance. The IMF doesn't think $2T will be enough and I'm inclined to agree.

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Some more info:

http://www.marketoracle.co.uk/Article8308.html

The impression I get from several sources is that the deleveraging will outweigh any possible stimulus by orders of magnitude.

VMR.

This is my guess too.

Sadly it won't stop the government trying anyway and trashing the pound in the process.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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