Thursday, Mar 19, 2020

Anything to keep the bubble

BBC: Coronavirus UK interest rates slashed to lowest level ever

0.1% interest rate, anything to keep the bubble going.
1991 Housing bubble
leading to dot.Com bubble by late 90.s
Leading to housing bubble II of early 00s
That crashed and burned in 2007-08.
No lessons learnt.
Carry on with more bubble blowing in asset price inflation, stock market bubble, housing bubble, tech bubble,
Crypto bubble of 2017
New technology 10's of billion dollar companies which loose money bubble.
Now before anything comes to light, this frothy market and the bubble starts to deflate more bubble blowing.
If only the previous bubbles would have done its cleanup we would have more companies that made real money for real work. They will be able to exists for a few months without handouts and also support the people and the customers who work there.
Rant over.

Posted by deepak @ 08:29 PM (1794 views)
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12 Comments

1. khards said...

Must keep those asset prices up!
Not really going to help the millions? losing their jobs this and next month.
We must hit the helicopter money stage soon, followed by the inflationary bust. Might even be a good time to own debt and a house? Who knows

Friday, March 20, 2020 09:00AM Report Comment
 

2. jack c said...

Times headline - Bank of England runs out of ammo in its fight against coronavirus - UK moves closer to Zimbabwe-style finance. The Bank of England is edging closer to Zimbabwe-style monetary financing to pay for the government’s coronavirus fighting fund as it runs out of tools to support the economy.

Friday, March 20, 2020 09:48AM Report Comment
 

3. taffee said...

Does anyone think that there is something we don't know!

None of this makes any sense

I mean if you gave someone this script for a sci-fi movie they would say it was unlikely to be credible or believable by the audience

Friday, March 20, 2020 11:08AM Report Comment
 

4. khards said...

Snarf, snarf..

Just seen this post over at ZH

https://brrr.money/

Friday, March 20, 2020 03:12PM Report Comment
 

5. nickb said...

Cutting interest rates from nearly zero to a bit closer to zero is unlikely to do much, so what about printing money? Not sure why this is being called the Zim option since it's happened in plenty of other places on many occasions ... Nothing wrong with printing money if all it's being done for is to counter debt deflation, but why we do it only to buy bonds off financial institutions is beyond me, rather than spending it into the economy. However, what might make it inflationary is that COVID-19 is affecting labour supply and therefore productive capacity. So this is going to be a wicked problem ...

Friday, March 20, 2020 03:52PM Report Comment
 

6. nickb said...

In case it wasn't clear, I wasn;t advocating anything to prop up house prices, only to counter a global depression!

Friday, March 20, 2020 03:54PM Report Comment
 

7. tenyearstogetmymoneyback said...

3. taffee said...

I mean if you gave someone this script for a sci-fi movie they would say it was unlikely to be credible or believable by the audience

It was actually done in 1975.

https://en.wikipedia.org/wiki/Survivors_(1975_TV_series)

They even got the source of the virus wrong.

I do wonder if there has been some over-reaction. When I checked 1400 people die of normal causes in the UK everyday.

https://www.quora.com/On-average-how-many-people-die-every-day-in-the-UK

However, the politicians might be worried that we end up in a Logan's Run type world but due to natural causes. Given that many of them are middle aged that wouldn't suit them (or me).

Saturday, March 21, 2020 06:41PM Report Comment
 

8. libertas said...

The economy needs tax cuts, and does not need a shut down. Those who are elderly and have pre-existing conditions can self isolate, others can practice sensible hygeine, nutrition and social distancing.

Even if there is a virus, Italy has reported 99% of victims had pre-existing conditions, half had over three, and the median age of deaths is over 80yrs, as reported by Bloomberg. https://www.bloomberg.com/news/articles/2020-03-18/99-of-those-who-died-from-virus-had-other-illness-italy-says

In other words, this is no different to the seasonal flu. How come that has never been a crisis? 17,260 to 18,768 died in the UK from influenza during 2017-18 and that was not a crisis? We didn't have enough ICU wards, ventilators, nurses or hospitals then, with no voluntary code for self quarantine and social distancing from the elderly and infirm if we are sick that should have occurred, but it was not a crisis, IT WAS A CRISIS.

https://www.gov.uk/government/statistics/annual-flu-reports

We know that this is an engineered situation and know who is behind it because of Event 201. This was a pandemic exercise in NYC, run by the World Economic Forum, who run DAVOS, so this is the corporate and financial elite. Bill and Melinda Gates Foundation were involved (you think they want to sell vaccines?). Their only concerns it seems were how to hammer the message (brainwash) and secure funding, read the documents and watch the videos, they have this event and then literally weeks later it goes live just as they had set it out:

http://www.centerforhealthsecurity.org/event201/
The economic policies being put in place and the control over our movements is literally an updated version of the Bolshevik revolution in Soviet Russia. That is what is going on. This is led by the WHO and corporatist interests who want a global socialist technocracy run for and by the corporations, nobody voted for the policies being implemented by the Chancellor right now. All the small businesses will end up shutting up shop, most not opening but the big corporates will get bailout and be fine. We have to rebel against this and support our local businesses.

Sunday, March 22, 2020 12:26AM Report Comment
 

9. stillthinking said...

Survivors is on youtube here, it looked a bit dated unsurprisingly how the UK has changed. Only the first series was done by Terry Nation (of Blakes 7 fame)

https://www.youtube.com/watch?v=zAyjkaFYnzE&list=PLEHFqyNxF--Z5n6_5RtWVTfMRxPeZdm_m

Sunday, March 22, 2020 02:37AM Report Comment
 

10. jack c said...

Libertas (Sunday, March 22, 2020 12:26AM) - but what about house prices in Enfield?

Monday, March 23, 2020 12:33PM Report Comment
 

11. crash bandicoot said...

Enfield house prices are going get turbocharged once that Crossrail thing gets a kickstart. If everyone stops talking this down we can make Enfield great again.

That's the kind of thing Dominic Cummings makes Boris Johnson say while he laughs at him behind his back.

Monday, March 23, 2020 10:53PM Report Comment
 

12. nickb said...

@8, @11
Libertas, you are Dominic Cummings and I claim my £10.
N

Tuesday, March 24, 2020 12:15AM Report Comment
 

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