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Gilt Yields Are Signalling A Depression


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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?

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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?

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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.

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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.

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  • 439 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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