the flying pig Posted September 23, 2009 Share Posted September 23, 2009 Assetz ???? indeed. no, i was just mucking around. i'm almost certain that your interpretation is correct. Quote Link to comment Share on other sites More sharing options...
Timm Posted September 23, 2009 Share Posted September 23, 2009 indeed.no, i was just mucking around. i'm almost certain that your interpretation is correct. Thanks. The funny thing is, Grasshopper has already posted the relevant part of the inflation report, but seems to draw the wrong inference from it: Well they would certainly like to stimulate spending amongst the masses by increasing the wealth effect. i.e. the prices of assets such as stocks and house prices. They seem to be having some success in this so far. From P11 of Augusts Inflation Report. "One channel through which asset purchases by the Bank should boost nominal spending is by pushing up asset prices and lowering yields.(1) That boosts wealth and reduces the cost of borrowing for households and companies, both of which should increase their spending" http://www.bankofengland.co.uk/publication...rt/ir09aug1.pdf The bold in that post is mine, to illustrate why I think they are talking about raising the price of securities in order to keep interest rates low and boost spending. They are talking about boosting the price of assets that they are buying. As they are buying gilts, but not houses, I guess it is the gilts they are targeting... Of course, some of any borrowing they facilitate will go on housing, and I personally don't agree with the BoE's approach, but the point is that while they may be allowing some HPI, it is simply not that which they are talking about in the OP... Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted September 23, 2009 Share Posted September 23, 2009 That makes you more of an idiot in my opinion - very unsure of yourself are'nt you?You think I value your opinion? What ..like commodity prices, oil, gold, and the world stockmarkets... oh yeah and UK house prices. Wow .... You must be a ........ Quote Link to comment Share on other sites More sharing options...
eric pebble Posted September 24, 2009 Share Posted September 24, 2009 MPC: Would monsior like one more loan? (French accent).Mr Cre-osumer "***K! I'm FULL!" MPC: (Still dodgy French accent); But sir, it is WAFFFFERRRRRR THIN! ...hmmm looks really sustainable! Excellent. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 24, 2009 Share Posted September 24, 2009 SSRD, If there was a reason for a downgrade, that moment has passed .. why should nay country that prints money have an AAA rating ? The ratings agencies wont shoot themselves in the foot by downgrading the UK or the US .. who are merrily buying each others debt with printed money. They know this and the ratings agencies know this .. nothings gonna haappen .. Its a different rule for zimbabwe and a different on for the US & UK .. like it or not !! Countries, all Countries print money...thats what central banks are for. Its the method used to get it out in the wild that needs to be watched. our current system does not involve helicopters. it involves borrowers. the government are about to be stopped. businesses are finding it hard to qualify, and mortgages and unsecured debt for households are being rationed and paid down. both here and the US, customers...and thats You and Me, are in short supply. Quote Link to comment Share on other sites More sharing options...
ingermany Posted September 24, 2009 Share Posted September 24, 2009 (edited) QUOTE (Sibley @ Sep 21 2009, 04:51 AM) * It won't be long before lending goes back to how it was. We like it and the country makes money. QUOTE: (MPC 23 September 2009) “There was a possibility that the recovery in asset prices and confidence could mark the start of a virtuous upward spiral for the economy,” the MPC said. The MPC are now just repeating exactly what Sibley has been saying for over 12 months. What is going on? Edited September 24, 2009 by ingermany Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 24, 2009 Share Posted September 24, 2009 The MPC are now just repeating exactly what Sibley has been saying for over 12 months. What is going on? what, that banks survival depends on maintaining asset values? bit late for that....thats why they are QE like mad..to maintain balance sheets.. notice how we are hearing how Lehman going bust was a total disaster...every day now its on the telly...not only because its a year ago, but they want to ensure the public are behind every banking rescue attempt....we wouldnt want another Lehmans would we...becuase it would be a disaster. funny, but Lehmans are gone...20,000 bankers jobs are gone....who has really noticed? Quote Link to comment Share on other sites More sharing options...
moneyfornothing Posted September 24, 2009 Share Posted September 24, 2009 Countries, all Countries print money...thats what central banks are for. Its the method used to get it out in the wild that needs to be watched.our current system does not involve helicopters. it involves borrowers. the government are about to be stopped. businesses are finding it hard to qualify, and mortgages and unsecured debt for households are being rationed and paid down. both here and the US, customers...and thats You and Me, are in short supply. Bloo thats not true .. the UK printed for the first time this year .. other countries went to the IMF and borrowed .. I didnt see India printing the money it needed to balance the books .. The IMF yesterday loaned it the money it needed.. Ok .. lets answer this question .. If a country that prints money to buy up assets is AAA, then what should we rate countries that buy assets (for stimulus) from their reserves ? Why are the UK & US rated higher than countries with net reserves ? Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted September 24, 2009 Share Posted September 24, 2009 What ..like commodity prices, oil, gold, and the world stockmarkets...oh yeah and UK house prices. So DB - what's the FTSE going to be in a few months' time? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 24, 2009 Share Posted September 24, 2009 Bloo thats not true .. the UK printed for the first time this year .. other countries went to the IMF and borrowed .. I didnt see India printing the money it needed to balance the books .. The IMF yesterday loaned it the money it needed.. Ok .. lets answer this question .. If a country that prints money to buy up assets is AAA, then what should we rate countries that buy assets (for stimulus) from their reserves ? Why are the UK & US rated higher than countries with net reserves ? they print money to keep up with growth....always have done, if they didnt...there would be deflation in a growing economy and inflation in a shrinking one....a good thing if you ask me, but no, they have a 2% target for inflation...that allows 2% of new money which is supposed to encourage borrowing and therefore the increased circulation of the new money et voila.....growth. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted September 24, 2009 Share Posted September 24, 2009 Countries, all Countries print money...thats what central banks are for. Its the method used to get it out in the wild that needs to be watched.our current system does not involve helicopters. it involves borrowers. the government are about to be stopped. businesses are finding it hard to qualify, and mortgages and unsecured debt for households are being rationed and paid down. both here and the US, customers...and thats You and Me, are in short supply. Hence I've argued that any printing should go direct to the owners of the printing press (i.e. everyone) net of debt. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted September 24, 2009 Share Posted September 24, 2009 Bloo thats not true .. the UK printed for the first time this year .. other countries went to the IMF and borrowed .. I didnt see India printing the money it needed to balance the books .. The IMF yesterday loaned it the money it needed.. Ok .. lets answer this question .. If a country that prints money to buy up assets is AAA, then what should we rate countries that buy assets (for stimulus) from their reserves ? Why are the UK & US rated higher than countries with net reserves ? in answer to your question, printing money to simply buy assets and ADD to the central banks balance sheet is a nonsense. course a country that is printing in excess of its growth is less likely to default than one which is able to borrow..because it is printing. Quote Link to comment Share on other sites More sharing options...
Godley Posted September 24, 2009 Share Posted September 24, 2009 Hey guys...funny how the MPC is comming out with this now...now that it's history!!!DaddyBear has been telling you for ages.....oh...oh..you never knew? Ah yes...thats because the mods keep banging his informative posts threads into the sub forums.... Tell you what...nip over there now and have a peek at what he has written....you might not be to late to protect yourself!! Talk about shooting yourself in the foot...oh and an other...old one....talk about the blind leading the blind. Jeez! you have all been at it!! Thing is you don't and have never understood the arguments you therefore still remain a **** in my book. But I have now been saying for a while now if you are leveraging buy now.............buy now. You hold cash convert it into something else. I have now completed my binge on borrowing, I even now own a plasma on hp of course can't beat 'em join 'em and stock, land and a house all my wordly wealth gone and replaced with assets and monthly payments. What makes me fecking puke though is that I have been FORCED to do this having lived a life within my means and never being sucked into the frenzy of the last 10 years except I did 'own' a couple of houses along the way. The whole capitalist system has been turned on its head...............being a feckless moron has paid dividends or at least they will be bailed out...........whilst damaging the harding working sensible majority. God I hate Gordon the Tw@t Brown. Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted September 24, 2009 Share Posted September 24, 2009 No idea why there are so many on here in shock. This is what they did on 2003, as described by Eddie. Not sure how you can easily sell your house and spend the cash without making yourself homeless though. Quote Link to comment Share on other sites More sharing options...
Jister1 Posted September 24, 2009 Share Posted September 24, 2009 Thing is you don't and have never understood the arguments you therefore still remain a **** in my book. But I have now been saying for a while now if you are leveraging buy now.............buy now. You hold cash convert it into something else. I have now completed my binge on borrowing, I even now own a plasma on hp of course can't beat 'em join 'em and stock, land and a house all my wordly wealth gone and replaced with assets and monthly payments. What makes me fecking puke though is that I have been FORCED to do this having lived a life within my means and never being sucked into the frenzy of the last 10 years except I did 'own' a couple of houses along the way. The whole capitalist system has been turned on its head...............being a feckless moron has paid dividends or at least they will be bailed out...........whilst damaging the harding working sensible majority. God I hate Gordon the Tw@t Brown. Oh...calm down ffs...what a rant that was. Look, at the end of the day...life is short and you can live like a saint, pay your way and work like a robot all you like. The bottom line is and allways will be this........IT IS A JUNGLE......every man for himself...once yo get your head round that...well....going by your last post you have, all will be fine. Nobody really cares about you...or how you survive...if you have nice things that can be given to your kids when you say goodbye...nobody cares...take what you can and help your kids get all they can....look out for you and your own. Trust me, there will be a greater sense of achievemnt knowing you have given something to the ones you love rather than the ones who fecked you! Quote Link to comment Share on other sites More sharing options...
Toto deVeer Posted September 24, 2009 Share Posted September 24, 2009 Gotta think like a criminal...who can I rob next? heh heh heh... Quote Link to comment Share on other sites More sharing options...
Jister1 Posted September 24, 2009 Share Posted September 24, 2009 Gotta think like a criminal...who can I rob next? heh heh heh... Great minds think alike..... everyone loved the trotters and arthur daily. Quote Link to comment Share on other sites More sharing options...
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