Jump to content
House Price Crash Forum
dothemaths

Gilt Yields Are Signalling A Depression

Recommended Posts

Wake up. its only just begun. ;)

What's begun? Seems to me this is evidence that the base rate can stay down low for ages.

We had the second highest deficit to GDP ratio, eclipsed only by Greece. And yet our bonds pay piddly amounts of interest and they are getting snapped up.

Someone explain to me again why Quantitative Easing makes gilts look more attractive?

Share this post


Link to post
Share on other sites

Someone explain to me again why Quantitative Easing makes gilts look more attractive?

They shouldn't, it's nonsensical. We're in an illusion that can't last.

Share this post


Link to post
Share on other sites

Someone explain to me again why Quantitative Easing makes gilts look more attractive?

it doesn't; demographics make gilts look more attractive

Share this post


Link to post
Share on other sites

We had the second highest deficit to GDP ratio, eclipsed only by Greece. And yet our bonds pay piddly amounts of interest and they are getting snapped up.

By the BoE...

Share this post


Link to post
Share on other sites

What's begun? Seems to me this is evidence that the base rate can stay down low for ages.

We had the second highest deficit to GDP ratio, eclipsed only by Greece. And yet our bonds pay piddly amounts of interest and they are getting snapped up.

Someone explain to me again why Quantitative Easing makes gilts look more attractive?

Don't understand that either.

Perhaps QE means more buyers for the bonds. More buyers pushes the price up and the yield down?

Share this post


Link to post
Share on other sites

Or one very keen buyer with a money printing machine

That's what i meant. Didn't they virtually buy all the bonds last year (together with the nationalised banks). This would leave little left for others, therefore pushing the price up.

Share this post


Link to post
Share on other sites

Banks have to keep more gilts as capital now.

Borrow money at 0.5% and even if the yield is only 2.5% it's still a free 2% to them courtesy of us generous taxpayers.

Then based on this miraculously achieved profit and that from the margin between not so low mortgages but very low saving rates, the bankers pay themselves millions in bonuses - lots of it from taxpayer backed banks.

It's legalised theft.

Share this post


Link to post
Share on other sites

Banks have to keep more gilts as capital now.

Borrow money at 0.5% and even if the yield is only 2.5% it's still a free 2% to them courtesy of us generous taxpayers.

Then based on this miraculously achieved profit and that from the margin between not so low mortgages but very low saving rates, the bankers pay themselves millions in bonuses - lots of it from taxpayer backed banks.

It's legalised theft.

Oof. I feel robbed.

Share this post


Link to post
Share on other sites

So why doesn't the government borrow it's money from the bank of England at 0.5% instead?

0.5% is the overnight rate. Governments usually borrow with longer terms in mind..

Linky

Share this post


Link to post
Share on other sites

Recession....depression........What comes after depression?

Cause thats whats coming

Oppression.

Followed by a bloody good session.

Edited by Fishman

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.