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How Long Will The Markets Fall Before Our Central Banks Start Printy Printy?

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If we continue to get sustained falls on the stock market this week in the -2 to -3% daily range how long will our central bankers hold off for before we get the inevitable printy printy to get things back up again to their "normal" level?

If they do print and give the money to the bankers again will that turn out to be a PR disaster, will they have to drop some cash on the proles? Or will the proles just sit back and accept it?

Or will our political elites finally stop interfering and let the system correct itself?

Unlike in 2008, they can't crash interest rates that magic bullet has been used up and bought 3 years.

Unless we go for negative interest rates.

Thoughts please.

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If we continue to get sustained falls on the stock market this week in the -2 to -3% daily range how long will our central bankers hold off for before we get the inevitable printy printy to get things back up again to their "normal" level?

If they do print and give the money to the bankers again will that turn out to be a PR disaster, will they have to drop some cash on the proles? Or will the proles just sit back and accept it?

Or will our political elites finally stop interfering and let the system correct itself?

Unlike in 2008, they can't crash interest rates that magic bullet has been used up and bought 3 years.

Unless we go for negative interest rates.

Thoughts please.

If they go neg on the rates I'm going to scream until my head explodes

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I think our current group of elites would rather die than give money to the plebes. So they will try bailing out the richest few by massive money going to the banks again.

My belief since before even the crisis began in 2008 is the only way out will be to eventually start printing money and giving it your average person. But I think we are a loong way from that eventuallity, as it isn't even talked of. In fact the talk is always about austerity for the average person.

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If they go neg on the rates I'm going to scream until my head explodes

If they try negative rates all my savings are coming out of the bank and into PMs, defensive stocks and a small stash of physical notes, pronto. I had been planning to diversify my sterling savings but this would cause me to do it all at once.

Even the most financially clueless person is likely to quickly reach the conclusion that it's better to withdraw your money and sit atop a pile of £50 notes than to keep it in the bank. I could see a banking crash of massive proportions developing if they were dumb enough to try that move as there isn't enough actual money to meet the amount of bank credit savings - bank runs a-go-go. And there wouldn't be any base capital in the banks to leverage so say goodbye to new lending. Instant, massive, deflation. No doubt to be countered by a huge print run at the BoE.

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If they try negative rates all my savings are coming out of the bank and into PMs, defensive stocks and a small stash of physical notes, pronto. I had been planning to diversify my sterling savings but this would cause me to do it all at once.

Even the most financially clueless person is likely to quickly reach the conclusion that it's better to withdraw your money and sit atop a pile of £50 notes than to keep it in the bank. I could see a banking crash of massive proportions developing if they were dumb enough to try that move as there isn't enough actual money to meet the amount of bank credit savings - bank runs a-go-go. And there wouldn't be any base capital in the banks to leverage so say goodbye to new lending. Instant, massive, deflation. No doubt to be countered by a huge print run at the BoE.

Can you get your savings out quick enough?

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If we continue to get sustained falls on the stock market this week in the -2 to -3% daily range how long will our central bankers hold off for before we get the inevitable printy printy to get things back up again to their "normal" level?

If they do print and give the money to the bankers again will that turn out to be a PR disaster, will they have to drop some cash on the proles? Or will the proles just sit back and accept it?

Or will our political elites finally stop interfering and let the system correct itself?

Unlike in 2008, they can't crash interest rates that magic bullet has been used up and bought 3 years.

Unless we go for negative interest rates.

Thoughts please.

I think the riots in London are linked to this. People at the bottom are being written off to save the rest and they sense it. The perceived injustice of bankers not only not going to jail but also getting bailouts to which they helped themselves is leading to violence.

If the govt keeps bailing out while restricting social spending I would expect to see much more violence.

Otherwise the govt opens the social spending spigots to keep poorer people happy while still helping their mates which should lead to some spectacular deficits and whatever reactions these would lead to.

I cannot conceive of the govt not helping banks.

Edited by _w_

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Bernanke is speaking tomorrow night, so I expect an announcement to be made then.

Ooooh! Double stimuli after the announcement of Obama's speech. Gold goes up even more.

I expect disappointments all round.

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I think our current group of elites would rather die than give money to the plebes. So they will try bailing out the richest few by massive money going to the banks again.

My belief since before even the crisis began in 2008 is the only way out will be to eventually start printing money and giving it your average person. But I think we are a loong way from that eventuallity, as it isn't even talked of. In fact the talk is always about austerity for the average person.

Australia did that in 2009 - everyone got around £1000 from memory. When I was there a big campaign was in place to get people to spend the money on things like solar water heating systems.

Whether economists agree it worked it was surely better than giving that very same money to the richest 0.0001% and thinking it would trickle down.

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I think our current group of elites would rather die than give money to the plebes. So they will try bailing out the richest few by massive money going to the banks again.

My belief since before even the crisis began in 2008 is the only way out will be to eventually start printing money and giving it your average person. But I think we are a loong way from that eventuallity, as it isn't even talked of. In fact the talk is always about austerity for the average person.

I don't get it.

Why don't they just recap the banks with new money, and use Basel 3 to force them to hold the capital as sov debt?

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If we continue to get sustained falls on the stock market this week in the -2 to -3% daily range how long will our central bankers hold off for before we get the inevitable printy printy to get things back up again to their "normal" level?

If they do print and give the money to the bankers again will that turn out to be a PR disaster, will they have to drop some cash on the proles? Or will the proles just sit back and accept it?

Or will our political elites finally stop interfering and let the system correct itself?

Unlike in 2008, they can't crash interest rates that magic bullet has been used up and bought 3 years.

Unless we go for negative interest rates.

Thoughts please.

What good would us printing do? QE2 seems to have done wonders for the US economy which has barely grown since it's inception. There is nothing we can do in the UK / USA to fix this situation. The reasons equities are selling off is because Italy, Spain etc are going to default.

The ECB and Germany need to find the solution to the insolvent half of the eurozone. Easiest solution is for Germany / Northern Europe to abandon the Euro and change the mandate of the ECB so it can monetize the debt of Italy, Spain etc.

Massive dislocation problems for a few years, but at least recovery would be in sight.

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If we continue to get sustained falls on the stock market this week in the -2 to -3% daily range how long will our central bankers hold off for before we get the inevitable printy printy to get things back up again to their "normal" level?

I'm finding the regularity of the daily drops quite surprising... a constant rate of decline of prices (just like a significant constant return from Ponzi schemes during the boom) to me, doesn't seem explicable by ordinary market forces of supply and demand.

I don't intend to allege a conspiracy theory about market manipulation/abuse... but I sure do find it odd that we have an almost linear decline.

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When they print (not If) is the amount added to the overall debt of the country or just ignored?

I think that depends on whether the money is used to finance addittional gilt sales.

UKQE1 had that element pretty much hardwired in.

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I think that depends on whether the money is used to finance addittional gilt sales.

UKQE1 had that element pretty much hardwired in.

So the rating agencies Fitch Moody etc wont be amused

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If we continue to get sustained falls on the stock market this week in the -2 to -3% daily range how long will our central bankers hold off for before we get the inevitable printy printy to get things back up again to their "normal" level?

If they do print and give the money to the bankers again will that turn out to be a PR disaster, will they have to drop some cash on the proles? Or will the proles just sit back and accept it?

Or will our political elites finally stop interfering and let the system correct itself?

Unlike in 2008, they can't crash interest rates that magic bullet has been used up and bought 3 years.

Unless we go for negative interest rates.

Thoughts please.

Last time they went to the printing press the excuse was there was a shortage of the quantity of money and inflation was too low. We now have inflation above target and the banks also have plenty of liquidity in their reserves. What excuse could the BOE give this time?

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Last time they went to the printing press the excuse was there was a shortage of the quantity of money and inflation was too low. We now have inflation above target and the banks also have plenty of liquidity in their reserves. What excuse could the BOE give this time?

Restoring peoples wealth... :ph34r:

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Last time they went to the printing press the excuse was there was a shortage of the quantity of money and inflation was too low. We now have inflation above target and the banks also have plenty of liquidity in their reserves. What excuse could the BOE give this time?

Supporting the economy.

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Last time they went to the printing press the excuse was there was a shortage of the quantity of money and inflation was too low. We now have inflation above target and the banks also have plenty of liquidity in their reserves. What excuse could the BOE give this time?

Competitive devaluation? If America prints do we have the choice not to?

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I think the riots in London are linked to this. People at the bottom are being written off to save the rest and they sense it. The perceived injustice of bankers not only not going to jail but also getting bailouts to which they helped themselves is leading to violence.

Bit early to assert that, but it may just be. I suspect the same effect is at work in Somalia too - not just the perception of injustice, but a reaction to the price of stuff relative to income ie. flee the country before you starve.

Teresa Maye actually had this question fired at her on BBC over the Tottenham event - "Is it down to criminality or is it really down to jobs and the economy?"

She flashed out an answer: "Criminality."

Hint of fear in her eyes? I like to think so - hehe! What would she do if this 250,000 crowd of middle-class wannabes turned up outside parliament?

http://www.bbc.co.uk...e-east-14433245

edit: reply to the OP: I think the US will jawbone until the end of the year, with UK in step, then go for asset purchases. Wild card is ECB not sterilising its bond purchases as they've done before, and finally toppling into QE in the meantime.

Edited by okaycuckoo

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  • 276 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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