Tuesday, Sep 29, 2009

6 month anniversary of QE

BBC: UK growth falls less than thought

The rate of contraction of the UK economy in the three months from April to June has been reduced again. Gross domestic product (GDP) has been revised to a fall of 0.6% compared with the last quarter, up from the previous estimate of 0.7%. Colin Ellis, a former senior economist at the Bank of England - "it's probably true that the impact of QE has maybe been a little bit less than the bank would have originally thought."

Posted by jack c @ 10:06 AM (1197 views)
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10 Comments

1. bystander said...

"it's probably true that the impact of QE has maybe been a little bit less than the bank would have originally thought."

..that's because the banks have all been using it to drive the markets up and gain massive profits, at the expense of the small businessman/woman and the general public. Was ever thus - SO BACK TO BUSINESS AS USUAL, no mater what Darling and GB say.

Tuesday, September 29, 2009 10:49AM Report Comment
 

2. tyrellcorporation said...

Hasn't a great deal of QE simply gone abroad?

Tuesday, September 29, 2009 11:04AM Report Comment
 

3. will said...

So it's still falling.

Tuesday, September 29, 2009 11:13AM Report Comment
 

4. hpwatcher said...

It created a lovely bubble in the stock markets....lol

Silly s*ds.

Tuesday, September 29, 2009 11:33AM Report Comment
 

5. drewster said...

I'd like to see a similar style of reporting used for weather reports:

"We're now in day five of the deadly heatwave that killed thousands. The temperature today is even higher than yesterday, although reassuringly it's not as high as forecasts had predicted."

Tuesday, September 29, 2009 12:56PM Report Comment
 

6. uncle tom said...

If the UK's QE was funding the stock market, why has virtually every stock market on the planet risen, mostly in tune with each other?

It's regular punters who are funding this. There is always private money to be invested, and stocks are popular at the moment, because everything else looks dodgy.

All QE is doing is telling small investors that you can't trust government stocks any more, unless they're index linked. If they stop QE, its inflationary effect will take a long time to filter through, and the punters won't trust them not to start again for many years.

In theory, everyone should be piling into euros, pushing the currency into orbit, because they are not obviously printing cash on any scale - but no-one trusts the ECB not to start doing so..

Tuesday, September 29, 2009 12:58PM Report Comment
 

7. hpwatcher said...

why has virtually every stock market on the planet risen

American QE and UK QE. speculating in a number of different markets.

Tuesday, September 29, 2009 01:13PM Report Comment
 

8. uncle tom said...

QE is really only covering the shortfall in tax receipts, itself a consequence (mainly) of reduced monetary velocity; and banking write-downs.

It is not liberating oodles of cash for speculation.

What happens when monetary velocity picks up again, is a matter for debate..

Tuesday, September 29, 2009 01:55PM Report Comment
 

9. hpwatcher said...

QE is really only covering the shortfall in tax receipts, itself a consequence (mainly) of reduced monetary velocity; and banking write-downs.

It is not liberating oodles of cash for speculation.


As I said, banks have used the money for speculating on the stock market......

Tuesday, September 29, 2009 05:43PM Report Comment
 

10. bystander said...

Uncle Tom, are you really that niave. It has already been discussed at length on CNBC, Bloomberg et al that this 'bull'sh*t market has been driven by QE and other fiscal stimulus, around the world. The next big lie is that there are many trillions waiting on the side lines, waiting to be unleashed and push the market higher - if true 'BUBBLE'anyone. I am sorry to appear rude, but this rally is, "to paraphrase Quentin Odey, a big fish in the hedgie world, "being sponsored by HMG, everyone should be enjoying it".

Tuesday, September 29, 2009 06:39PM Report Comment
 

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