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Confidence Collapses Among Our Top Finance Chiefs

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http://uk.finance.yahoo.com/news/finance-chiefs-suffer-crisis-of-confidence-on-double-dip-fears-tele-8d95f1787c37.html?x=0

Angela Monaghan, 8:06, Monday 5 July 2010
Sentiment among Britain's finance chiefs has collapsed to the lowest level in a year as fears of a double-dip recession and the impact of Government-imposed austerity measures mount.
A survey of chief financial officers (CFOs) by Deloitte found that a balance of just 24pc were feeling more optimistic in the second quarter, compared with 40pc in the first quarter.
It was the lowest level in 12 months, as the average CFO attached a 38pc probability to the chance of a double-dip, up from 33pc previously.

It does seem that no one believes in the idea we are "well placed to avoid the mess others find themselves in" and that we must, therefore, follow the rest down. That must include our housing bubble as the last man standing.

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Then shouldn't HPCers be scared... because if the country goes into double dip it will mean even more massive QE printing... which will lead to inflation of assets from houses to the yellow stuff... and most of us would see our savings wiped out.... or am I missing something?

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Then shouldn't HPCers be scared... because if the country goes into double dip it will mean even more massive QE printing... which will lead to inflation of assets from houses to the yellow stuff... and most of us would see our savings wiped out.... or am I missing something?

New government. When in a hole

  • stop digging

  • dig harder

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Then shouldn't HPCers be scared... because if the country goes into double dip it will mean even more massive QE printing... which will lead to inflation of assets from houses to the yellow stuff... and most of us would see our savings wiped out.... or am I missing something?

QE didn't save the US housing Market. You need a lot of money to buy a house as an Inflation hedge. I can't see UK housing being a safe haven in the event of double dip recession.

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Guest Steve Cook

Then shouldn't HPCers be scared... because if the country goes into double dip it will mean even more massive QE printing... which will lead to inflation of assets from houses to the yellow stuff... and most of us would see our savings wiped out.... or am I missing something?

God knows how this will pan out MT. I find myself in a constantly vascillating state of thinking we are headed for massive deflation or massive inflation. One thing I am growing ever more confident about though is that we are headed for one of these two extremes. There does not seem to be a midde-ground end to this.

On the one hand, all the economic indactors sugges that we should be falling into a masive deflationary hole. On the other hand, printing is always the nuclear option of our governments. The trouble is, printing only "works" if the money can make it into the pay packets of the average worker. There are a number of resons why this isn't and wont work. The biggest of which is that prices of good and services will, from now on, rise even faster than our capacity to print becasue of resource shortages.

I would say that the only safe thing to do is to decide what exactly one want's in life. And I mean really want, irrespective of what the market values it at. When one has decided that, then save up and buy it with as little or no debt as is possible. Debt, it seems to me, no matter what the outcome of this crisis, is the enemy.

At that point, stop coming to this forum, stop reading the ecomonic runes, start living and forget about what the f*cking "market" thinks

That's my strategy anyways...:)

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Politically it’d be an interesting outcome if the coalition chose QE after all their publicised need to defend sterling. Own goal.

What I can’t understand is how people think that the recession is over and that a second dip ahs been avoided. Even today Deloitte announced that confidence among finance directors has slipped for the second quarter in a row. What planet are these people on, they must have been been living in denial.

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It’s very difficult to judge how many BTL there are as already mentioned.

Some relatives who live in London have inherited a four bed house in the West Country and want to let it. The thing that shocked me was that they don’t have a clue as to the rent that they’ll get. Their problem is that they think that as it might have got say £1.5k pcm in London down there it’ll never make that. They are an example of what the market terms accidental landlords. I suggested that they sell it but that went down like a lead balloon. Odd thing is they are always moaning how high housing costs are in London. Their logic is that by holding on to it it's value will rise.

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God knows how this will pan out MT. I find myself in a constantly vascillating state of thinking we are headed for massive deflation or massive inflation. One thing I am growing ever more confident about though is that we are headed for one of these two extremes. There does not seem to be a midde-ground end to this.

On the one hand, all the economic indactors sugges that we should be falling into a masive deflationary hole. On the other hand, printing is always the nuclear option of our governments. The trouble is, printing only "works" if the money can make it into the pay packets of the average worker. There are a number of resons why this isn't and wont work. The biggest of which is that prices of good and services will, from now on, rise even faster than our capacity to print becasue of resource shortages.

I would say that the only safe thing to do is to decide what exactly one want's in life. And I mean really want, irrespective of what the market values it at. When one has decided that, then save up and buy it with as little or no debt as is possible. Debt, it seems to me, no matter what the outcome of this crisis, is the enemy.

At that point, stop coming to this forum, stop reading the ecomonic runes, start living and forget about what the f*cking "market" thinks

That's my strategy anyways...:)

Wow for the first time ever I almost entirely agree with you.

The outcome is inflationary though, if they can't get it into pay packets they will start dropping it from planes. Deflation would result in decimation of the 'system', 'they' will not allow this to happen.

Debt is clearly the issue, but what is stopping them from (other than the moral hazard) from effectively writing the debt down and printing to prop banks balance sheets up. This would then avoid the wage inflation necessary to effect the correction? Not given it serious thought but perhaps you have.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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