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gfromls

Very Interesting Read

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"
But central banks around the world have decided that the days of super-easy money are over. They have started to take money out of circulation, pushing interest rates up.
The big price falls on Wall Street in the past week, quickly mimicked in markets everywhere else, are a clear signal that a sharper appreciation of risk has returned
."

It seems that the Fed is happy to keep raising and weed out the weak performers. Much as the UK should do. If Gordon keeps going down the debt path to save his "Miracle Economy" (Greespan never claimed such a title for the US economy despite a stellar performance over the past 10 years) the UK will have a deficit to match the US and without the historic resilience to deal with it. He has followed Al Greenspan to a tee during loosening and now he needs to follow the Fed back up to correct the same problems overly loose credit have created.

"
For the last four years the Bank of Japan has been injecting 35 trillion yen [$420 billion] into the monetary system per day - that's seven times more than the system actually required. Japan has been an extraordinary fountain of liquidity for the world, the biggest source of global liquidity
."

Tick tock, tick tock :o

Edited by Realistbear

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"
But central banks around the world have decided that the days of super-easy money are over. They have started to take money out of circulation, pushing interest rates up.
The big price falls on Wall Street in the past week, quickly mimicked in markets everywhere else, are a clear signal that a sharper appreciation of risk has returned
."

It seems that the Fed is happy to keep raising and weed out the weak performers. Much as the UK should do. If Gordon keeps going down the debt path to save his "Miracle Economy" (Greespan never claimed such a title for the US economy despite a stellar performance over the past 10 years) the UK will have a deficit to match the US and without the historic resilience to deal with it. He has followed Al Greenspan to a tee during loosening and now he needs to follow the Fed back up to correct the same problems overly loose credit have created.

"
For the last four years the Bank of Japan has been injecting 35 trillion yen [$420 billion] into the monetary system per day - that's seven times more than the system actually required. Japan has been an extraordinary fountain of liquidity for the world, the biggest source of global liquidity
."

Tick tock, tick tock :o

From information and reports I have read and taking likely economic conditions in Japan, UK, US etc, I would envisage around 2 years of increasing tightening till the UK money providers can no longer, profitably, lend at low to reasonable levels.

Realistbear, you seem to have your finger on this particular pulse, how do you see this tightening process pan out and over what time frame?

Thankyou in advance

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  • 301 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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