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Guest Winnie

Clownetsky On R4 This Am

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Guest Winnie

Evan Davis interviewed two "economists" today just before the 9.00am news - and I joined it mid-stream to hear a man saying that you could not compare us with Japan or the US in the 30s as we were a very robust economy where the IR cuts were working really extensively and all his friends mortgages had gone to zero "like a windfall" and that QE was marvellous and that this was going to be a normal everyday blip of a recession with a V shaped recovery. Surprise, surprise it was Kaletsky.....

Evan Davies endorsed it all. The BBC has clearly been told to turn up the volume on ramping the economy.....

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The tide is coming in, & Nu Labour can't halt it................the more they do this, the more they look powerless.

I agree though, DC 1st job is to have a clear out @ the BBC.

Mike

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Listen again link might have been useful:

http://www.bbc.co.uk/iplayer/console/b00khszr (2:54 in)

OP was exaggerating somewhat, but there were some wonderful quotes from Kaletsky. "The worst is over; we're seeing signs of economic improvement; The housing market is picking up; The banking system has stabilized, I don't think anyone is worried about another bank failing."

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Evan Davis interviewed two "economists" today just before the 9.00am news - and I joined it mid-stream to hear a man saying that you could not compare us with Japan or the US in the 30s as we were a very robust economy where the IR cuts were working really extensively and all his friends mortgages had gone to zero "like a windfall" and that QE was marvellous and that this was going to be a normal everyday blip of a recession with a V shaped recovery. Surprise, surprise it was Kaletsky.....

Evan Davies endorsed it all. The BBC has clearly been told to turn up the volume on ramping the economy.....

Isn't the Clownestky the guy that seriously talked about taxing savings capital a couple of months back (in order to encourage people to spend it)?

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I listened to the interview and was really bemused. Anatole seems to be very selective in the data he uses to support his position. He very much is a sentiment man - that economies are driven solely by sentiment and fundamentals are not important (in this case the sentiments of his friends it would seem). The man is a fool, but I would not mind so much except he as such a significant access to the media - the public do not deserve to be exposed to this rubbish.

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Isn't the Clownestky the guy that seriously talked about taxing savings capital a couple of months back (in order to encourage people to spend it)?

Taxing savings capital is perfectly sane if you live in economist fantasy land.

In reality, people prefer to be robbed by inflation rather than by taxing their savings. It's a funny old world.

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Isn't the Clownestky the guy that seriously talked about taxing savings capital a couple of months back (in order to encourage people to spend it)?

He's the clown who best embodies the economics of the past decade, ie. rigged low inflation figures and the low interest rate fix for every problem. Unfortunately he will still be seen as a guru until this latest splurge by the government has been shown to have achieved nothing, other than land us in massive debt.

We've got a very long way to go (years) until the mood changes and economics of balanced budgets, efficiency and cost cutting become the fashion. To get there we have to go through a lot of pain.

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We've got a very long way to go (years) until the mood changes and economics of balanced budgets, efficiency and cost cutting become the fashion. To get there we have to go through a lot of pain.

Have we???, just been out on the high street this weekend, never seen some many folks shopping, the moods has centaintly changed in the last 3 months. I do believe the drop of the base rate is working to a large extent, to some with tracker rate mortgages its put almost £600 in thir pocket overnight!!!.. I think the only place its not working is in the minds of a minority on HPC. ;)

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Have we???, just been out on the high street this weekend, never seen some many folks shopping, the moods has centaintly changed in the last 3 months. I do believe the drop of the base rate is working to a large extent, to some with tracker rate mortgages its put almost £600 in thir pocket overnight!!!.. I think the only place its not working is in the minds of a minority on HPC. ;)

But unless they are happy to watch their equity dwindle, they should be paying that £600 off their mortgages. Spending it is just a new form of MEW.

Edited by Confusion of VIs

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Have we???, just been out on the high street this weekend, never seen some many folks shopping, the moods has centaintly changed in the last 3 months. I do believe the drop of the base rate is working to a large extent, to some with tracker rate mortgages its put almost £600 in thir pocket overnight!!!.. I think the only place its not working is in the minds of a minority on HPC. ;)

Not that many on trackers to make much difference...wait till base rates have to rise.

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Have we???, just been out on the high street this weekend, never seen some many folks shopping, the moods has centaintly changed in the last 3 months. I do believe the drop of the base rate is working to a large extent, to some with tracker rate mortgages its put almost £600 in thir pocket overnight!!!.. I think the only place its not working is in the minds of a minority on HPC. ;)

The whole UK economy has been driven for years on debt and consumer spending. Massive debts have been taken on by individuals as a result. Post the banking collapse the UK government has taken on massive debts to try to refinance the banking sector. This has been done to such an extent that the creditworthiness of UK itself is now under question. As an example take S&P's comments on the UK AAA rating this week.

The problem doesn't just apply to the UK, but also to Europe and the US. However I think that relative to many other countries the UK is in a worse state. A recent report cited the UK as the 34th worst off out of 57 countries.

At the moment the government has delayed taking any really serious decisions about spending because it's focusing on the short term target of the general election. However after the election public spending is going to have to be reined in. A few weeks ago a figure to 100,000 council jobs to be lost was mentioned.

So the UK individual has massive debt, the UK has massive debt and public spending is unsustainable. A warning shot has been signalled by S&P to highlight that post the election the new government must cut public spending or a downgrade to AA is likely.

Unemployment is still rising, house prices are dropping and mortgage approvals are way off the 90,000 per month that would indicate stable prices.

The BOE is busy pursuing QE and devaluing the currency by £125bn.

I know where I think we're heading, but then everyone can make their own mind up.

Edited by AnotherSTR

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The tide is coming in, & Nu Labour can't halt it................the more they do this, the more they look powerless.

I agree though, DC 1st job is to have a clear out @ the BBC.

Mike

Don't hold your breath, Kaletsky is one of Murdoch's minions, the sort of person "call me Dave" would likely get in.

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Have we???, just been out on the high street this weekend, never seen some many folks shopping

breaking news!!! people still shopping! even more so when it's not cold and the sun makes an appearance !!

astonishing claim made by professor of the bleedin' obvious jimmy0Mates,

here's a disingenous wink. ;)

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to some with tracker rate mortgages its put almost £600 in thir pocket overnight!!!.. I think the only place its not working is in the minds of a minority on HPC. ;)

You are aware that more than 50% of all mortgages are fixed rate?

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You are aware that more than 50% of all mortgages are fixed rate?

What's seriously depressing is that some people are deluded enough to go out and spend their tracker windfalls, instead of paying off their mortgages.

When the crunch returns (post-election budget? Gilts strike?) they're going to be hammered.

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You are aware that more than 50% of all mortgages are fixed rate?

And so nearly 50% of all mortgages are variable/tracker and have plummeted.

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Not that many on trackers to make much difference...wait till base rates have to rise.

Base rates are irrelevant: None of the banks (or at least very few) borrow directly from the BOE, they use customer deposits...

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Base rates are irrelevant: None of the banks (or at least very few) borrow directly from the BOE, they use customer deposits...

Not if you're on a tracker, they're not.

And even if you are on an SVR it'll still be lower than you were paying two years ago.

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Not if you're on a tracker, they're not.

And even if you are on an SVR it'll still be lower than you were paying two years ago.

Sure, I should have said irrelevant to the banks...

If the banks don't borrow the money for the mortgage from the BOE, why link the price to the base rate?

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There's a general election on the horizon (aswell as the imminent euro and local elections) so they have to sucker up the sucker economy as much as possible.

Feel good factor etc.

Be aware that after the general election there will likely be a step change.

Edited by billybong

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Interesting that he put emphasis on consumer confidence. The aggressive rate cutting is the only reason retail sales haven't collapsed. As it is, the most dramatic rate cuts in history meant that spending has just about held up.

Rates on the rise would kill consumer confidence and lead to stage 2 of the crash, so Kaletsky is basically pinning all his hopes/forecasts on our "government" being able to keep interest rates down in the near future. :lol::lol::lol::lol:

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