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Guest wrongmove

The Hangover After Too Much Punch

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Guest wrongmove

The hangover after too much punch

"The surprising thing about the Bank of England's decision to raise interest rates was that it was a surprise. There were plenty of straws in the wind in the past month to suggest the monetary policy committee would opt for a no-risk strategy, yet the City - with a few notable exceptions - failed to see it coming.....

....Since only cheap money can persuade consumers to spend and businesses to invest, interest rates come down. Liquidity is pumped into the banking system; our doormats are once again carpeted with unsolicited mail extolling the benefits of taking out fresh lines of credit at "unbeatable" rates. Debt levels go up as the cheap money fuels a new bout of speculation. And when the speculation reaches fever pitch, central banks hose things down for a while.

Perhaps I'm missing something here but it seems that this way of regulating economies is just as crude and inefficient as the old system of direct controls on credit - and potentially far, far more destabilising. This is not economics, it is bubble-onomics."

Feeling the pain ? Not if you are in the black, and your employer is the black, and your employer's customers are in the black....

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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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