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maverick73

Britain's Unreliable Boyfriend

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Great graph. I'd like to see a version of that going to when he started, with his "forward guidance" based on employment figures, with the employment figures overlaid!

 

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Don’t listen to the hedge funds - we need interest rates kept low

A growing number of finance types often of the wealthy hedge fund manager persuasion will tell you the Bank of England needs to “normalise” interest rates. Whack ’em up to one, two, three per cent, they say. Withdraw the life support and get Britain standing on its own two feet again. 

When you point out to this group that this would trigger an almighty recession, they’ll tell you that’s no bad thing. Recessions clear the dead wood and wash away firms which don’t deserve to exist, you see. Ian Hares today offers a decent counter-argument to such Darwinian fundamentalists. He’s the guy in charge of the taxpayer’s stake in the Northern Rock and Bradford & Bingley mortgages that went bad in the last recession. And he says an increase in rates from today’s 0.25% to 1.25% — still low by historic standards  would shunt up to 10% of borrowers into default. That’s 15,000 households and £2 billion of loans just in his bailiwick.

Admittedly, his customers are among the most overstretched already, but if you extrapolate that across the country, you’re quickly talking about hundreds of thousands. And not just mortgages, but personal loans, car loans and credit cards too. Misery for families, losses to banks and, as a knock-on, damage to good, healthy firms reliant on Brits having money to spend. ES


 

You see, most people enjoy it - don't stop the party now.

 

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16 minutes ago, Tapori said:

There is no magic money tree for investment; unless you're a banker.

I hope someone does explain this to me: why is QE bond buying an acceptable use of the magic money tree but everything else is not?  

Step 5 of the diagram below apparently suggests that QE is to get people to spend more.  Surely just giving that money directly will achieve exactly the same more efficiently.

Unless the main point of QE is to feed the financial institutions, our masters.

_80420417_quantitative_easing_v4_624in.g

Source: http://www.bbc.co.uk/news/business-15198789

Edited by Bear Hug

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4 hours ago, Bear Hug said:

I hope someone does explain this to me: why is QE bond buying an acceptable use of the magic money tree but everything else is not?  

Step 5 of the diagram below apparently suggests that QE is to get people to spend more.  Surely just giving that money directly will achieve exactly the same more efficiently.

Unless the main point of QE is to feed the financial institutions, our masters.

_80420417_quantitative_easing_v4_624in.g

Source: http://www.bbc.co.uk/news/business-15198789

Listen right, what we both don't understand is just how efficient, spectacular, innovative, dynamic and crucial the speculative financial sector is in ensuring we are all fed. To keep them fed the FED and BoE must do their best to cook the books nice and tasty. No treats for anyone. Only the best.

Deregulation of financial policy despite it's bumps, has ushered in a whole new era of growth and prosperity; have you not seen the latest tech? the progression as a species? All down to the engine that is financial services. If your pay packet hasn't risen but costs have, it's because you're just not trying hard enough.

If you disagree at all in these wise-men of money then what do you propose you commie/marxist/socialite/fascist/hippie/idiot/peasant/hater?

Now go on, don't try to understand money and it's complexity and what it actually is and how finance functions; leave that to the experts in the city, the government, the regulators and the entrepreneurs and anyone from Oxbridge. They are our betters. Our moral, physical, mental superiors in every-way and they have disagreements but they know more than us. We can but glimpse the shadow of their intellect briefly on our screens.

If you do what you propose or anything that upsets these intelligent sensitive moneyed souls, their self-sacrifice in protecting you from ignorance, stupidity, stubbornness, narrow mindedness, callousness, cocaine, hookers, excess and avarice induced hedonism will go to waste.  Far worse, your country and the entire world may collapse. Do you want that? For people to all be poor? To lose everything? Mao? Stalin? Hitler?

Now get back to paying that rent/mortgage/noose and be grateful you're not in the 3rd world. Also, don't ever look at how you enjoy the rights you do. Do not read about economics or history or divergent opinions. Keep your head down, enjoy life when you can and know that it will all be over one day.

Night night. Don't let the absurd fiscal policy bite.

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8 hours ago, rollover said:

Don’t listen to the hedge funds - we need interest rates kept low

A growing number of finance types often of the wealthy hedge fund manager persuasion will tell you the Bank of England needs to “normalise” interest rates. Whack ’em up to one, two, three per cent, they say. Withdraw the life support and get Britain standing on its own two feet again. 

When you point out to this group that this would trigger an almighty recession, they’ll tell you that’s no bad thing. Recessions clear the dead wood and wash away firms which don’t deserve to exist, you see. Ian Hares today offers a decent counter-argument to such Darwinian fundamentalists. He’s the guy in charge of the taxpayer’s stake in the Northern Rock and Bradford & Bingley mortgages that went bad in the last recession. And he says an increase in rates from today’s 0.25% to 1.25% — still low by historic standards  would shunt up to 10% of borrowers into default. That’s 15,000 households and £2 billion of loans just in his bailiwick.

Admittedly, his customers are among the most overstretched already, but if you extrapolate that across the country, you’re quickly talking about hundreds of thousands. And not just mortgages, but personal loans, car loans and credit cards too. Misery for families, losses to banks and, as a knock-on, damage to good, healthy firms reliant on Brits having money to spend. ES

 

 

Erm, that's the point. These people don't have any money of their own to spend. It's all unsustainable debt.

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7 hours ago, Bear Hug said:

I hope someone does explain this to me: why is QE bond buying an acceptable use of the magic money tree but everything else is not?  

Step 5 of the diagram below apparently suggests that QE is to get people to spend more.  Surely just giving that money directly will achieve exactly the same more efficiently.

Unless the main point of QE is to feed the financial institutions, our masters.

_80420417_quantitative_easing_v4_624in.g

Source: http://www.bbc.co.uk/news/business-15198789

Because the high priests would suddenly be out of a job?

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8 hours ago, rollover said:

You see, most people enjoy it - don't stop the party now.

Man whose income flows from a zombie business says, "zombie businesses should be supported".

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36 minutes ago, dpg50000 said:

 

Erm, that's the point. These people don't have any money of their own to spend. It's all unsustainable debt.

To feed the machine, entrapment is required. To save money means one can have power ?

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