Sunday, December 2, 2007

Forecasts changing the hour – in a southerly direction !!!!

The credit crunch could crush the euro

"The credit crunch is hammering the US, which now faces a likely recession. Things don’t look great for the UK either; here growth could plunge to 1 per cent next year." "When buyers' access to credit is hobbled, it is right to ask just where the demand will come from to keep property prices firm." -"Yes Sir your house will soon be worth nothing more than a pile of bricks"

Posted by sovietuk @ 03:44 PM (1182 views)
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18 thoughts on “Forecasts changing the hour – in a southerly direction !!!!

  • “changing by the hour”

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  • Maybe the Telegraph joournalists are reading Spiegel.

    The Euro will be under pressure, which will only increase pressure to increase interest rates…..

    I’ve posted this before, but it’s acidly relevant

    http://www.spiegel.de/wirtschaft/0,1518,519517,00.html

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  • A good article. Don’t agree with the Euro failing though. Thats complete nonsense in my humble opinion. I reckon it will prove versatile as its diversity is its strengh. Also China will start putting a lot of cash in the Euro to diversify their reserve holdings.

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  • David Smith's Sub Prime. . . says:

    “There is certainly a risk,” King told MPs, responding to that survey, “that the MPC won’t be able to keep inflation close to target in the wake of further commodity and energy price rises.” That doesn’t sound like the prelude to an interest rate cut….

    Oh I see this is energy prices that have meant that price (and next wage?) inflation has got out of control? Not greedy fianacial institutions lending the money on property, the withdrawl of ‘equity’ from such causing more money sloshing around the system?

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  • planning4acrash says:

    Hmm, unlikely, but very possible. I’d be ready to jump money from Sterling, fingers on the buzzers at 12 midday on Thursday!!

    “King is right to worry. I applaud his hawkish stance. To cut rates when inflation is above target, and rising, smacks of panic. But I have a sneaking suspicion the MPC just might vote for a rate cut this Thursday – even if that means, once again, King himself is outvoted.

    Of the nine MPC members, two – David Blanchflower and Sir John Gieve – are firm rate-cutters. Deputy Governor Rachel Lomax is on the brink – as, in my view, is the Bank’s chief economist, Charlie Bean. Only five votes are needed to cut.

    And as inter-bank rates tighten further this week, and the money markets squeal, more MPC members will jump.”

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  • tyrellcorporation says:

    If King is out voted that’ll be the third time. Three strikes and I think he may consider resigning!

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  • ..”it is right to ask where the demand will come from to keep property prices firm”. One answer is – why should keeping property prices firm be any kind of priority? The other answer (the EA / VI answer) is that property prices will stay firm because of inadequate supply. Of couse the EA / VI lobby isn’t using that argument just now – they’re busy squealing that property prices will plunge unless the BoE cuts interest rates this week

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  • planning4acrash says:

    I thought he’d only been outvoted once so far. The obvious one was when rates were cut a few years ago, when was the other?

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  • planning4acrash says:

    I thought he’d only been outvoted once so far. The obvious one was when rates were cut a few years ago, when was the other?

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  • planning4acrash says:

    I thought he’d only been outvoted once so far. The obvious one was when rates were cut a few years ago, when was the other?

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  • planning4acrash says:

    I thought he’d only been outvoted once so far. The obvious one was when rates were cut a few years ago, when was the other?

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  • planning4acrash says:

    I thought he’d only been outvoted once so far. The obvious one was when rates were cut a few years ago, when was the other?

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  • planning4acrash says:

    oops, internet connection screwed up, apologies!

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  • tyrellcorporation says:

    I actually can’t remember but the last time he was outvoted (which was earlier in the year I believe) there was a big hoo-hah at the time that it was the second time in his tenure. I could be wrong though, I’ll have a sniff around to find out.

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  • tyrellcorporation says:

    Second occasion was 21st june 2007.

    Here it is: http://findarticles.com/p/articles/mi_qn4158/is_20070621/ai_n19307993

    He’ll be pretty hacked off with a third but there again with Gordon hiring his own stooges and yes-men , what does he really expect.

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  • dohousescrashinthewoods says:

    At this rate the mainstream media will be forcasting armageddon by the end of next week 😉

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  • dohousescrashinthewoods says:

    Heard our very own Jonathan Davies (apologies if the spelling is wrong) on Radio 4’s Moneybox. Good work that man. Always sounds remarkably sane despite the somewhat incredulous questionning. I thought he made the point rather well.

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  • dohousescrashinthewoods says:

    Jonathan Davis, sorry 🙂

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