Sunday, October 5, 2008

Davis Smith has cracked it!

Time for a big, bold cut in interest rates

I wrote here on the last day of August that the case for delaying a cut in Bank rate come October could be looking very thin. Then we had a series of speeches from the Bank of England’s decision-makers showing they were aware of the downside risks but were in no mood to rush things.

Posted by holding out @ 10:14 AM (845 views)
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7 thoughts on “Davis Smith has cracked it!

  • mark wadsworth says:

    Trying to forestall a recession by cutting official interest rates is madness – it’s like “pushing a piece of string”. Actual market interest rates now bear little relation to base rates.

    These banks can be sorted out by making them do debt-for-equity swaps. That solves 90% of the ‘financial crisis’ at a stroke, with no need for bank failures, subsidies, nationalisation etc etc.

    Senior economist Willem Buiter explains why here on his FT blog.

    Humble bean counter does worked example here on his own blog.

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  • I cannot believe what I saw on rightmove today, loads of agents in the Cheshire area are putting the prices up… can anyone tell my why they are being stupid at a time like now………Do they think all will be rosy when the bail out starts? If so they are thick as sh*t

    Anyone shed any light please

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  • Like Danny “oops I did it again” Blanchflower, David Smith’s answer to too much cheap money is always to cut rates. Genius at work – step aside …

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  • @mark, because people from the south will rush northwards to escape massive falls.

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  • Happier Kitch says:

    Mark maybe as no houses are selling anyway rightmove put up prices and coupled to the bailout ,next month they say prices up 5% and with sentiment after the bailout general tools in buy to let vi’s etc are chuffed to punch even though no houses are sold anyway as rightmove uses asking prices for data. thoughts

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  • planning4acrash says:

    Looks like £ is moving towards 1.60 to the dollar. (If they cut).

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  • Wow! Smith is still employed ……to give his views on the economy?

    He has never been right about anything related to the economy but continues, it seems, to use his busted model to make incorrect predictions and to offer duff advice.

    I cannot believe that anybody bothers to read what this clown has to say anymore.

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