A.steve Posted August 19, 2009 Share Posted August 19, 2009 http://uk.reuters.com/article/idUKTRE57I1DF20090819 Quote Link to comment Share on other sites More sharing options...
Lepista Posted August 19, 2009 Share Posted August 19, 2009 http://uk.reuters.com/article/idUKTRE57I1DF20090819 So, the market was shocked at the scale of the additional £50,000,000,000 QE. I wonder what will happen when it realises they were considering £75,000,000,000? Probably go up Quote Link to comment Share on other sites More sharing options...
Dr Elk Posted August 19, 2009 Share Posted August 19, 2009 Is this good news? I can't tell anymore. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 19, 2009 Share Posted August 19, 2009 so Mervyn "its worse than we expected" King thinks it IS worse than theyve applied the "cure" for. that IS interesting. Quote Link to comment Share on other sites More sharing options...
Guest KingCharles1st Posted August 19, 2009 Share Posted August 19, 2009 oldest sales trick in the book- give somebody two choices. Was there not an option for 25B. or ZERO QE? Quote Link to comment Share on other sites More sharing options...
A.steve Posted August 19, 2009 Author Share Posted August 19, 2009 Is this good news? I can't tell anymore. Neither good nor bad, just interesting. It underlines that the market expectations were somewhat off-beam as they were shocked that the amount was as much as £50bn. It indicates that QE, as a policy, is far from over - and that more QE in future is plausible. It suggests to me that there remain significant systemic monetary problems - and that any spin from Sentence about a return to GDP growth this year was either an irrelevance or misdirection. I think it lends credence to the idea that there remain significant events on the horizon - perhaps as significant as a sovereign default. Quote Link to comment Share on other sites More sharing options...
Injin Posted August 19, 2009 Share Posted August 19, 2009 oldest sales trick in the book- give somebody two choices.Was there not an option for 25B. or ZERO QE? Good spot. Arguing about how much, not whether to do it at all. Quote Link to comment Share on other sites More sharing options...
Markie6 Posted August 19, 2009 Share Posted August 19, 2009 It does make you wonder how on earth they could have arrived at 0 for the previous month. What happened in the previous month. something wicked this way comes Quote Link to comment Share on other sites More sharing options...
Injin Posted August 19, 2009 Share Posted August 19, 2009 (edited) Neither good nor bad, just interesting. It underlines that the market expectations were somewhat off-beam as they were shocked that the amount was as much as £50bn. It indicates that QE, as a policy, is far from over - and that more QE in future is plausible.It suggests to me that there remain significant systemic monetary problems - and that any spin from Sentence about a return to GDP growth this year was either an irrelevance or misdirection. I think it lends credence to the idea that there remain significant events on the horizon - perhaps as significant as a sovereign default. Government is flat broke - printy printy all the way. The monetary system won't be reformed - it's impossible politically. Full collapse of both financial and political systems are 100% guaranteed. We is ******ed. Edited August 19, 2009 by Injin Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 19, 2009 Share Posted August 19, 2009 Neither good nor bad, just interesting. It underlines that the market expectations were somewhat off-beam as they were shocked that the amount was as much as £50bn. It indicates that QE, as a policy, is far from over - and that more QE in future is plausible.It suggests to me that there remain significant systemic monetary problems - and that any spin from Sentence about a return to GDP growth this year was either an irrelevance or misdirection. I think it lends credence to the idea that there remain significant events on the horizon - perhaps as significant as a sovereign default. what the markets have to remember is that QE is the mat covering the turds on the floor. OK, the pile of turds is much bigger than expected so a bigger mat is needed. what is very worrying, is that they cant SEE all the turds....Mark to model is the reason....the banks can hide most of the turds in the shadows. course, they may be hidden, but they are still there, and with falling US property values, the pile is actually getting bigger. Quote Link to comment Share on other sites More sharing options...
R K Posted August 19, 2009 Share Posted August 19, 2009 what the markets have to remember is that QE is the mat covering the turds on the floor.OK, the pile of turds is much bigger than expected so a bigger mat is needed. what is very worrying, is that they cant SEE all the turds....Mark to model is the reason....the banks can hide most of the turds in the shadows. course, they may be hidden, but they are still there, and with falling US property values, the pile is actually getting bigger. Do you have any other metaphors BL? I was just about to tuck into a warm teacake.......... Quote Link to comment Share on other sites More sharing options...
CokeSnortingTory Posted August 19, 2009 Share Posted August 19, 2009 what the markets have to remember is that QE is the mat covering the turds on the floor. It's more the scaffolding holding up the crumbling bridge. Japan's experience was that QE was easy to get into, but difficult to get out of. This decision indicates to me that we're going along the "lost decade" route. Only it will be more than a decade. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 19, 2009 Share Posted August 19, 2009 Do you have any other metaphors BL? I was just about to tuck into a warm teacake.......... sure, lets swap "turds" for "toxic vomit" the banks needs to expel to other entities. Quote Link to comment Share on other sites More sharing options...
R K Posted August 19, 2009 Share Posted August 19, 2009 sure, lets swap "turds" for "toxic vomit" the banks needs to expel to other entities. Hmm....think I preferred the turds. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 19, 2009 Share Posted August 19, 2009 Hmm....think I preferred the turds. I think though, that toxic vomit is actually a better metaphore. Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted August 19, 2009 Share Posted August 19, 2009 Mervyn King is obviously smarting from the blame he is getting for failing to act swiftly enough at the beginning of the recession, as David Smith suggested. Ego is getting in the way of logic. He needs to be ousted. And quickly. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted August 19, 2009 Share Posted August 19, 2009 It'll be interesting to see how history writres this anyway. Whether Merv's speach (Did he even make one, or have we been 1984'd enough yet) against more QE seems to have disappeared into the background.... Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted August 19, 2009 Share Posted August 19, 2009 Is this good news? I can't tell anymore. I can't tell either, the last time I looked at a newspaper in the stand before paying for petrol, it appeared the front page was taken up by the fake saga of Jordan and Peter, with a full 1/4 of the front page devoted to a rather desperate looking advert from Tesco, touting 2 Clubcard points for 1. Quote Link to comment Share on other sites More sharing options...
piece of paper Posted August 19, 2009 Share Posted August 19, 2009 I can't tell either, the last time I looked at a newspaper in the stand before paying for petrol, it appeared the front page was taken up by the fake saga of Jordan and Peter, with a full 1/4 of the front page devoted to a rather desperate looking advert from Tesco, touting 2 Clubcard points for 1. This is a disgrace. I feel that my existing points are devalued. If they keep printing points, they'll be worthless in a few years time. Hasn't Tesco learnt anything from 1920s Germany? p-o-p Quote Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted August 19, 2009 Share Posted August 19, 2009 what the markets have to remember is that QE is the mat covering the turds on the floor.OK, the pile of turds is much bigger than expected so a bigger mat is needed. what is very worrying, is that they cant SEE all the turds....Mark to model is the reason....the banks can hide most of the turds in the shadows. course, they may be hidden, but they are still there, and with falling US property values, the pile is actually getting bigger. what happens when the Mat sinks do we all drown while swallowing turds maybe turds will replace £'s as the currency of choice - are they nutrient rich Quote Link to comment Share on other sites More sharing options...
NotMyHouse Posted August 19, 2009 Share Posted August 19, 2009 We're all aboard the failbus now. Or is it this one? Quote Link to comment Share on other sites More sharing options...
Traktion Posted August 19, 2009 Share Posted August 19, 2009 Neither good nor bad, just interesting. It underlines that the market expectations were somewhat off-beam as they were shocked that the amount was as much as £50bn. It indicates that QE, as a policy, is far from over - and that more QE in future is plausible.It suggests to me that there remain significant systemic monetary problems - and that any spin from Sentence about a return to GDP growth this year was either an irrelevance or misdirection. I think it lends credence to the idea that there remain significant events on the horizon - perhaps as significant as a sovereign default. Indeed... we will not know until it happens either. What was that rumour about September being the time to get out of Sterling that went around a while back? Now QE has started, unless there is a market backlash, what is to stop them pumping more and more in? Equally, what is to stop them from tightening up the reserve requirements? Everything is still up in the air and we will probably not know what they were plotting to do for years, if ever. We will probably find out the results of it much sooner though... Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 19, 2009 Share Posted August 19, 2009 Indeed... we will not know until it happens either.What was that rumour about September being the time to get out of Sterling that went around a while back? Now QE has started, unless there is a market backlash, what is to stop them pumping more and more in? Equally, what is to stop them from tightening up the reserve requirements? Everything is still up in the air and we will probably not know what they were plotting to do for years, if ever. We will probably find out the results of it much sooner though... Ive still not received my bundle of QE...should it have arrived by now? or do I need to be a bank with a balance sheet that needs some numbers added to make it solvent? Quote Link to comment Share on other sites More sharing options...
OrcusMaximus Posted August 19, 2009 Share Posted August 19, 2009 This is a disgrace. I feel that my existing points are devalued. If they keep printing points, they'll be worthless in a few years time. Hasn't Tesco learnt anything from 1920s Germany?p-o-p Made my day that did. Quote Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted August 19, 2009 Share Posted August 19, 2009 3 strikes at qe and their out Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.