Jump to content
House Price Crash Forum

Mervyn King Defends Quantitative Easing


Recommended Posts

0
HOLA441
1
HOLA442
2
HOLA443
3
HOLA444
4
HOLA445

Accused of not supporting SMEs with Qe money not being lent Benny Hill said it was nonsense.

I sought a loan this week to expand my business (and create 2 further jobs)and rate would now be between 3.45 aan 3.75 % above base. This would mean our risk and work would only reward the bank.

RESULT = no loan, no jobs created.

Link to comment
Share on other sites

5
HOLA446

Accused of not supporting SMEs with Qe money not being lent Benny Hill said it was nonsense.

I sought a loan this week to expand my business (and create 2 further jobs)and rate would now be between 3.45 aan 3.75 % above base. This would mean our risk and work would only reward the bank.

RESULT = no loan, no jobs created.

you mean they are actually charging a risk premium for credit extension, ooo how nasty

Link to comment
Share on other sites

6
HOLA447

Thx for the link

Mervyn's just confirmed that their actions are inflationary. He says SME's would be hit harder had they taken no action (long term Merv?).

I'm pretty sure an MP just said the Treasury will need to borrow £600Bns over next few years (on top of Bank's borrowings). Do you think our LT rates will rise? Er...

Link to comment
Share on other sites

7
HOLA448
8
HOLA449
9
HOLA4410
10
HOLA4411
11
HOLA4412

Accused of not supporting SMEs with Qe money not being lent Benny Hill said it was nonsense.

I sought a loan this week to expand my business (and create 2 further jobs)and rate would now be between 3.45 aan 3.75 % above base. This would mean our risk and work would only reward the bank.

RESULT = no loan, no jobs created.

That doesn't seem unreasonable?

1% is probably their costs, so they're gambling on less than 1 in 40 companies to default to make a profit?

Actually, I really surprised it's that low. Is is secured against something?

Link to comment
Share on other sites

12
HOLA4413

Nope - expansion not extension.

We have successfully paid down the loan we had on our first business (at 1.5 over base) and would now take out another loan to set up the same type of business.

you should consider that it is the BOE rate that is underpricing economic risk rather than the bank, (id have thought printing another 75Bn to supress rates should highlight that)

Link to comment
Share on other sites

13
HOLA4414

That doesn't seem unreasonable?

1% is probably their costs, so they're gambling on less than 1 in 40 companies to default to make a profit?

Actually, I really surprised it's that low. Is is secured against something?

Yes - secured.

Look at the change though. In less than 5 yrs.

Last time I asked rate was less and is continuing to rise. Potential improvement in lifestyle is great and profit would be good so still tempted.

Life has been on hold for property prices to fall and nose to grindstone for too long. May as well use deposit money in business.

Link to comment
Share on other sites

14
HOLA4415
15
HOLA4416

http://www.telegraph.co.uk/finance/financialcrisis/8846201/Debt-crisis-live.html

10.30 Back to Sir Mervyn King at the House of Commons - he says whatever is decided at tomorrow's EU summit will not solve the region's underlying problems - it will only buy one or two years of breathing space...

President Sarkozy will have a new target for his rage...

Wow upto 24 months breathing space, he's feeling generous.

Link to comment
Share on other sites

16
HOLA4417

Telegraph is reporting the following.

"10.30 Back to Sir Mervyn King at the House of Commons - he says whatever is decided at tomorrow's EU summit will not solve the region's underlying problems - it will only buy one or two years of breathing space... "

Does Merv suggest what is needed to resolve the underlying problems? I can only see bankruptcy as the solution, or is he suggesting anything else?

Link to comment
Share on other sites

17
HOLA4418

Yes - secured.

Look at the change though. In less than 5 yrs.

Last time I asked rate was less and is continuing to rise. Potential improvement in lifestyle is great and profit would be good so still tempted.

Life has been on hold for property prices to fall and nose to grindstone for too long. May as well use deposit money in business.

Last time, if 5 years ago, everything in the garden was rosy, and they would lend to anyone who could "fog a mirror". That was not normality.

Normality is lending at a rate over the rate of inflation...

Link to comment
Share on other sites

18
HOLA4419

"When we undertook the next round of asset purchases, we did it because we thought there were real risks of inflation looking ahead falling below the target and we wanted to offset that."

By this he means they printed more money because we think that inflation will go BELOW 2% in the future. I would have thought QE would have had the opposite effect?

Link to comment
Share on other sites

19
HOLA4420
20
HOLA4421

Mervyn King and Charles Bean are in front of the House of Commons Treasury Committee ...............

When I read the start of this thread I thought it was going to be a joke, when I read further I realised it is,... but not a funny one :unsure:

Edited by madpenguin
Link to comment
Share on other sites

21
HOLA4422

The MPs are absolutely useless. No wonder Merv runs rings around them. It's like an adult talking to children – they're woefully uninformed.

To be fair a child could run rings around that pile of sh1te.

You'd imagine they might at least do some background reading.

Imagine the sh1t we'd be in if they were actually running the country!

Link to comment
Share on other sites

22
HOLA4423

he just admitted the devaluation of the currency was intentional/needed.

They aren't trusting his forward predictions, asking for a timeline on how inflation will get to 2% in a year

Merv: Hard to come up with any reasonable argument as to why inflation will not fall sharply next year.

Well there's one right there, by AteMoose.

Only a liar would suggest that devaluing the currency wasn't going to have a knock on affect on the price of energy and the goods created using it.

Link to comment
Share on other sites

23
HOLA4424
24
HOLA4425

Merv: Hard to come up with any reasonable argument as to why inflation will not fall sharply next year.

Oil was $100 a barrel in April but dropped 15%. Pump prices didn't drop. Yesterday oil went up 3.7% in a day. Today it has gone up another 2%. It's clearly going to be "unexpected" when fuel prices feed inflation in 2012

Then there is the extra 3p per litre fuel duty due Jan 2012

The detail of the Treasury's Budget Book spells out: 'The main fuel duty rate will increase by 3.02p per litre on 1 January 2012.' And there is another inflationary rise planned for next summer: 'The 2012-13 increase in fuel duty will be implemented on 1 August 2012

Read more: http://www.thisismoney.co.uk/money/cars/article-1716474/Budget-2011-Sting-in-the-tail-on-fuel-duty.html

Link to comment
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.




×
×
  • Create New...

Important Information