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Blanchflower's 'house Prices Are Still Falling' Vested Interest


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HOLA441

Poor Danny - he's arguing for an increase in QE, but house prices are rising and there's the possibility of a new house price bubble, as some of his ex-fellow MPC members are, I have little doubt, pointing out.

I know Danny, let's pretend that this is just a blip - and that house prices have further to fall...

(and what gives this labour market economist the housing market expertise to justify an article on the subject in the Telegraph anyway? He should be ashamed, the turd!)

http://www.telegraph.co.uk/finance/5957481...ll-falling.html

Edited by gruffydd
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HOLA442

:rolleyes:

http://www.forexyard.com/en/reuters_inner....TAIN-BANK-FOCUS

A Reuters poll on Thursday showed economists split as to whether the bank would extend the programme in August, although the consensus was still that it would reach 150 billion. Markets, on the other hand, last week warmed to the view that the QE programme would end in August after MPC member Andrew Sentance was quoted as saying the BoE could indeed pause.

But a closer read of the interview showed he was saying little the BoE had not said before -- they could stop or go on.

That was also before Friday's shockingly poor GDP number. The economy shrank by 0.8 percent in the three months to June -- much more than financial markets and BoE economists were predicting just days before the release.

People familiar with the BoE's thinking said that number will have been a wake-up call to the MPC, alerting them to the possibility they could be making a real mistake again by assuming the economy will soon get back on an even keel.

"The end-game for quantitative easing is a long way off," David Blanchflower, who left the council in May and was the only member to flag the extent of the global crisis last year, told Reuters.

"The BoE needs to expand QE a lot right now because otherwise any recovery will take an awfully long time."

Edited by gruffydd
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HOLA443
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HOLA444

And I see a rash of articles out today pushing the QE agenda - including Dave Smith and his pals at the shadow MPC. The VIs are pulling out all the stops. The lobbyists are busy - businesses, trade unions, economists, all screaming MORE MORE MORE MORE MORE.

http://www.guardian.co.uk/business/2009/au...ing-mervyn-king

Edited by gruffydd
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