Sunday, Jun 11, 2006

Roger Bootle on the strengthening euro and rising interest rates

Sunday Telegraph: The euro on a roller-coaster ride

Bearish article from Bootle who foresees a strengthening euro and rising interest rates globally. Seems to have changed his mind on UK rates which he has previously forecast to fall : "Rates here (UK) have so far held steady but the odds against a rate rise have been shortening".

Predicts asset valuations to come under pressure : "central banks (have been) running very low interest rates and presiding over huge rises in liquidity. This has produced extremely buoyant asset markets, which took valuations to excessive levels.
And this set the markets up for a fall. The realisation that central banks are in the pro-cess of backtracking from their expansive mode, coupled with rather worse inflation news, made markets realise how vulnerable valuations were and how it was about time that they recognised the notion of risk - and priced for it accordingly.
There is probably more market turbulence - and weakness - to come."

Posted by Waiting Patiently @ 10:43 AM (517 views)
Add Comment
Report Article

8 Comments

1. harold said...

Of course, what Bootle - the faithful foot soldier - doesn't outline are the prospects for the pound given an increasingly attractive euro, err... down?

Sunday, June 11, 2006 01:21PM Report Comment
 

2. denzil said...

Bootle seems to change his tune more often than the weather. One minute it's interest rate cuts the next minute it is a rise. I normally agree with many of his points but that is not hard because if he were a weatherman he would forcast:
Sun
Rain
Cloud
Clear
Windy
Calm

Along with David Smith of the Times who recently said "Too early for a rate cut" Bootle is a prize chump who hums whatever tune the payer wants.

Sunday, June 11, 2006 03:30PM Report Comment
 

3. Magnifico said...

I agree with Denzil and add if anyone had made half the mistakes/ wrong predictions/ u-turns of this guy they would have lost their job long ago.

Sunday, June 11, 2006 07:13PM Report Comment
 

4. Thebritishbrickie said...

absolutley

Sunday, June 11, 2006 08:32PM Report Comment
 

5. Paul said...

David Smith is a twit. He's the king of throwaway unsubstantiated comments, and he depends on his readers having short memories - some of his comments in the last 3 months:

"After things have settled down soon, oil will fall back to $40/barrel"
"it's too soon for a rate rise with rising unemployment"
"Borrowing against your home is wealth generation"

Sunday, June 11, 2006 09:41PM Report Comment
 

6. denzil said...

Paul said
[Quote]
David Smith is a twit. He's the king of throwaway unsubstantiated comments, and he depends on his readers having short memories - some of his comments in the last 3 months:

"After things have settled down soon, oil will fall back to $40/barrel"
"it's too soon for a rate rise with rising unemployment"
"Borrowing against your home is wealth generation"
[END QUOTE}

And don't forget "Inflation dog is still not barking".

Monday, June 12, 2006 10:22AM Report Comment
 

7. This comment has been removed as it was found to be in breach of our Blog Policies.

 

8. This comment has been removed as it was found to be in breach of our Blog Policies.

 

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Username  
Admin Password
Email Address
Comments

Main Blog | Archive | Add Article | Blog Policies