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Merv's On Sky News Now

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"It's the outlook for inflation, rather than it's present level, that matters".

At 5.6%, we need not worry. It's all about next year. :rolleyes:

Edited by Wait & See

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Well they all lost all credibility with me back in 2005. When the rest of the nation catches on with me, they can find new jobs.

No control at all, they're just talking heads.

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"Provision of additional liquidity support to troubled nations can buy time."

"Unsustainably low Interest rates have bought time."

Did I just time travel? Are we back in 2002?

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"Unsustainably low Interest rates have bought time."

How exact is that quote?

It's a remarkable statement if reported here verbatim.

(Check the tense.)

Edited by A.steve

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The words " Expect" & " Anticipate" kinda smack of hope more than anything .... V worrying.

He's just another banking crooks, like the others.

Full of a pack of lies.

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The prices of assets that investors choose to buy go up, raising wealth

It's jaw dropping stuff. That simply isn't what wealth is or gives any clues as to how humans became wealthy.

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How exact is that quote?

It's a remarkable statement if reported here verbatim.

(Check the tense.)

Well spotted.

it'd also explain why he's on TV. Balloon about to go up?

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It's jaw dropping stuff. That simply isn't what wealth is or gives any clues as to how humans became wealthy.

It certainly is jaw dropping stuff.

True more debt is wealth bullcrap. If you get less for those money you spend you are not wealthier, especialy if you go into more debt to satisfy that purchase. Which is exactly what they want SME's to do - gear up and overbid on premises, services, anything really. All it does is increase the likelihoods that they overstretch themselves and go to the wall and increase the differential between the cost base of small vs large companies - most large companies can ALWAYS get better credit terms than small ones - without putting their personal assets (and homes) on the line too.

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Guest spp

He's just another banking crooks, like the others.

Full of a pack of lies.

Financial crack dealers?

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How exact is that quote?

It's a remarkable statement if reported here verbatim.

(Check the tense.)

The quote is:

"Around the world, short-run stimulus packages of various kinds, and unsustainably low interest rates, have bought time. So far that time has not been used to deal with the underlying imbalances, or the weaknesses in bank and sovereign balance sheets. Four years after the financial crisis began, the foreign exchange reserve holdings of China are substantially larger than at the onset of the crisis. Markets now realise that before the crisis banks were seriously undercapitalised and so react in a volatile way to any news about the health of the banking system. And the indebtedness of governments around the world is certainly greater. Time is running out."

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Labelled the current turmoil in the worlds economic system as a solvency problem not liquidity problem. If so then why pump in an extra £75 billion of QE money? Why not guarantee deposits for Average Joe and start letting some banks go t1ts up!

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'Time is running out' seems to be the general thrust of the speech. In addition to the one I posted above:

"Four years into the crisis it is surely time to accept that the underlying problem is one of solvency not liquidity – solvency of banks and solvency of countries. Of course, the provision of additional liquidity support to countries or institutions in trouble can buy valuable time. But that time will prove valuable only if it is used to tackle the underlying problem."

And:

"Providing liquidity to buy time to devise and put in place a coherent response to the underlying problem can be not only valuable but necessary. But liquidity can never be the answer in itself. And if the time bought is not used then the size of the debt problem becomes larger and its cost is gradually transferred from private sector creditors to taxpayers."

And:

"But easy monetary policy, by bringing forward spending from the future to the present, means that the ultimate adjustment of borrowing and spending will be even greater. That is our dilemma, and that of other deficit countries."

http://www.bankofengland.co.uk/publications/speeches/2011/speech523.pdf

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In fact, the majority of Britain’s largest companies can borrow more cheaply in capital markets than the average of the largest six

banks.

Erm...? Thanks...?

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Did I just time travel? Are we back in 2002?

We have had unsustainable interest rates for over 10 years. Boom or bust it doesn't matter. Still very low interest rates!

Still, Keynes said in the long run we are all dead.

Merv is only interested in keeping asset prices high. The economy will be a smouldering ruin but people can enjoy their overpriced assets.

The worst depression since the 30's but with rampant inflation and assets not allowed to collapse in value. Thats a pretty toxic combination I'd have thought.

It really is an "Emperors new clothes situation" and Merv is in the "all together." :lol:

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http://blogs.wsj.com/marketbeat/2011/10/18/stocks-through-the-roof-on-report-of-2-trillion-euro-efsf/

Here we go again. The Guardian is reporting that France and Germany have agreed to boost the EFSF to 2 trillion euros, and the stock market is off to the races.

Where are they going to get these 2 trillion euros? From the euro tree?

Here’s the top of the Guardian story:

France and Germany have reached agreement to boost the eurozone’s rescue fund to €2tn as part of a “comprehensive plan” to resolve the sovereign debt crisis that the eurozone summit should endorse this weekend, EU diplomats said.

And yet — there are thin details in the story about how this is going to be structured, financed, etc.

Here’s the key graf — the EFSF will have additional leverage and act as an insurance fund, which we all knew about, I thought:

First, the main bailout fund, the European financial stability facility, will be given additional levers enabling it to offer first-loss guarantees for bondholders, be they private or public. Senior diplomats say this will deliver a fivefold increase in the fund’s firepower – giving it more than €2tn compared with the current €440bn lending capability. The EFSF will effectively become an insurer, thereby overcoming European Central Bank resistance to the idea of turning into a bank.

Edited by Panda

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  • 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%



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