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Realistbear

Cuts Greeted With Massive Ftse Rise And Soaring Sterling

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Since the cuts have been more formalised by the Koalishon Kohnference the FTSE has exploded with growth and Sterling has risen vs. the $ and Yen as it is seen as a safe haven now that the economy is expanding (or expected to given that the FTSE reflects future prospects).

Futures point to another huge up day and the FTSE is expected to breach 6000 very soon with nothing but blue skies ahead. The double dip was cancelled (again) yesterday in the US as their PMI dta showed the 9th consecutive month of unexpected growth and a significant improvement in the house market. Most of it based on QE2 in the US. UK,Japan and Germany of course. The addict to get another boost?

Is it possible that the massive debt, sovereign debt crises, austerity, cuts etc are yesterday's news and we can expect to return to the good days without having paid for the Brown years of spending and debt accumulation? The next fix might last until Crimbo and a bigger dose will be required in the Spring IMO. In the meantime, should we pile into everythng from stocks to gold as all is a one-way bet?

IMO, head for cover.

FTSE All Share 2912.18 39.58 +1.38%

Dow Jones 10944.72 193.45 +1.80%

Edited by Realistbear

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Since the cuts have been more formalised by the Koalishon Kohnference the FTSE has exploded with growth and Sterling has risen vs. the $ and Yen as it is seen as a safe haven now that the economy is expanding (or expected to given that the FTSE reflects future prospects).

Futures point to another huge up day and the FTSE is expected to breach 6000 very soon with nothing but blue skies ahead.  The double dip was cancelled (again) yesterday in the US as their PMI dta showed the 9th consecutive month of unexpected growth and a significant improvement in the house market.  Most of it based on QE2 in the US. UK,Japan and Germany of course.  The addict to get another boost?

Is it possible that the massive debt, sovereign debt crises, austerity, cuts etc are yesterday's news and we can expect to return to the good days without having paid for the Brown years of spending and debt accumulation?   The next fix might last until Crimbo and a bigger dose will be required in the Spring IMO.  In the meantime, should we pile into everythng from stocks to gold as all is a one-way bet?

IMO, head for cover.

FTSE All Share 2912.18 39.58 +1.38%

Dow Jones 10944.72 193.45 +1.80%

RB, its inflation all the way.  Without it everyone is bust and they won't let that happen.

People keep going on about the unwinding and how we can't escape deflation, but its always possible to print your way out of deflation, its just a simple question of scale. That said, those who think it might be a long term solution are  wrong, as ultimately the economy needs to restructure and keeping zombies alive doesn't help the process.  However, what the inflation can do however is give room for those businesses and individuals that would have been readily viable had they not had to load up on debt to just get their hands on productive or certain consumption assets.

This process will of course involve wiping bond holders out via inflation, and whilst this might drive up interest rates, they'll only push the nuclear options once the economy is burning hot again.

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Since the cuts have been more formalised by the Koalishon Kohnference the FTSE has exploded with growth and Sterling has risen vs. the $ and Yen as it is seen as a safe haven now that the economy is expanding (or expected to given that the FTSE reflects future prospects).

Futures point to another huge up day and the FTSE is expected to breach 6000 very soon with nothing but blue skies ahead. The double dip was cancelled (again) yesterday in the US as their PMI dta showed the 9th consecutive month of unexpected growth and a significant improvement in the house market. Most of it based on QE2 in the US. UK,Japan and Germany of course. The addict to get another boost?

Is it possible that the massive debt, sovereign debt crises, austerity, cuts etc are yesterday's news and we can expect to return to the good days without having paid for the Brown years of spending and debt accumulation? The next fix might last until Crimbo and a bigger dose will be required in the Spring IMO. In the meantime, should we pile into everythng from stocks to gold as all is a one-way bet?

IMO, head for cover.

FTSE All Share 2912.18 39.58 +1.38%

Dow Jones 10944.72 193.45 +1.80%

I know you sold your equities early and missed out on this rally , like me in fact ,but bleating about it on here isn't going to make up for the easy money you missed out on.

You made a decision to sell and it was the wrong one , live with it.

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RB, its inflation all the way.  Without it everyone is bust and they won't let that happen.

People keep going on about the unwinding and how we can't escape deflation, but its always possible to print your way out of deflation, its just a simple question of scale. That said, those who think it might be a long term solution are  wrong, as ultimately the economy needs to restructure and keeping zombies alive doesn't help the process.  However, what the inflation can do however is give room for those businesses and individuals that would have been readily viable had they not had to load up on debt to just get their hands on productive or certain consumption assets.

This process will of course involve wiping bond holders out via inflation, and whilst this might drive up interest rates, they'll only push the nuclear options once the economy is burning hot again.

I think you are right about this; the insouciance of the BOE towards inflation has indicated this to me for some time; they want to erode debt via inflation no matter what they say.

I also agree that it will take a bomb underneath them to raise IRs anytime soon; they will postpone this until the last possible moment.

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It’s impossible to read anything from official figures these days. We are in unsheltered waters, and despite the noises from various experts and authorities, what we are experiencing is roller-coaster economics.

The only known outcome from all of this is misery and poverty culminating in one hell of a global conflict resulting in yet another mass extermination of humans.

It might be prudent to prepare for war and start stockpiling baked beans.sad.gif

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  • 142 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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