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What Will Happen When Qe Finishes

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Guest KingCharles1st

When QE finishes- it means they have run out of "0000000"s on the BoE computer screen

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QE also appears to be doing a nice job of supporting the stock market as well.

Perhaps money can be just printed into existense after all, providing it's issued by trustworthy people like Brown and not by the likes of Mugabe.

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if the market has priced everything in, why does it change value all the time?

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Can someone just tell me what will happen please :)

We will all have reached nirvana and everything will be perfect.

QE is an experiment that can only lead to happiness.

If the outcome wasn't going to be positive the central bankers would never have done it.

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Can someone just tell me what will happen please :)

they, when the time is right, will recall the QE. simples.

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Can someone just tell me what will happen please :)

Either interest rates on government debt will rise, or the Government will have to stop spending money on essential services and pay or tax us more.

Perhaps all of the above.

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After a 20% drop in house prices QE kicked in and supported the market.

If the BoE stop printing money will rates rise

Did it? Is quantitative easing the only thing that gave us spring bounce?

Can we have rate rises without an end of QE?

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if the market has priced everything in, why does it change value all the time?

It doesn't price everything in, because 1) everyone's view of the world is different and 2) new information is being absorbed all the time. I don't believe in efficient markets. However, I would say that the gilt market has already priced in something like a 90% chance that QE is not extended on Thursday. Therefore it would seem unlikely that the market will move much if/when they announce that.

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Can someone just tell me what will happen please :)

Merv starts dumping the gilts back onto the market. Ideally for him, the timing would be a couple of months before the election (so he can settle scores with Gordo and Darling). Alas that might be too soon, so the BoE might be stuck with gilts for a while yet.

Either interest rates on government debt will rise, or the Government will have to stop spending money on essential services and pay or tax us more.

+1. That's why the BoE will prob hold off selling for some time- at least until the budget gets back into surplus :lol:

The BoE needs to balance this against the damage to their own credibility. By holding on for longer, they will probably make a larger paper loss (being printed money that has leaked into circulation permanently)

Can we have rate rises without an end of QE?

Yes if gilt auctions start to fail or people pile out of sterling

Edited by Toilet-Currency

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QE won't end with the current crooks in charge unless they're prepared to face up to their ruinous debts - and they're not.

Edited by punter

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However, I would say that the gilt market has already priced in something like a 90% chance that QE is not extended on Thursday. Therefore it would seem unlikely that the market will move much if/when they announce that.

So a major buyer by proxy (the BoE) dropping out of the market will have no effect on prices / yields?

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So a major buyer by proxy (the BoE) dropping out of the market will have no effect on prices / yields?

The BoE doesn't buy NEW gilts, it buys OLD gilts from banks who then use the money to buy new gilts.

it's completely different.

honest.

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Guest anorthosite
What Will Happen When Qe Finishes

People will finally stop putting "Printy, f**king, printy" in their posts?

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Guest UK Debt Slave
Castle_romeo2.jpg

Impressive photo.

Castle Bravo 15 megaton H-Bomb

This is the one they underestimted the power of bigtime

Hopefully they haven't underestimated the utter dogs dinner they have made of the global financial system. I rather suspect they have though.....deliberately of course

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