Financial Times says Quantitative Easing sparking fears of bond dumping

Generali

StevieJ wrote: »

Just out of interest Gen are you spreading despair and despondency in OZ ?

TBH old thing, I don't really see the above post as spreading despair at all. It's more an explanation of the result of a particular course of action.

As with any bit of economics there are lots of ifs and buts. Anyone who says a certain thing will necessarily happen under all possible scenarios isn't thinking things through.

If QE happens, if foreign holders of gilts don't want to buy more, if the government is still running a deficit at that point (or trying to) and if the IMF is unable to recapitalise then a bad thing will happen.

It's funny really, I suspect a lot of people on here imagine me as some kind of harbinger of doom and a depressive. Actually in real life I'm a very optimistic and happy person - I had lot of friends in the UK and will in Aus too I'm sure.

It's just that in the pretty narrow area that this board was discussing when it was about housing in general, then a sub board about house prices and now in its current incarnation as a discussion about the wider economy with particular reference to house prices the UK (and many other countries besides) have very obviously gone down a very wrong road.

My belief is still that ultimately things will work out well because that's what almost always happens. So the UK Government can't pay its bills. What happens next? Unemployed people find they have to find very low paying jobs (forget the minimum wage) to put food on the table. Able bodied pensioners might have to go back to work. Perhaps it could even come to planting potatoes on the square at Lords or ploughing up White Hart Lane. It may not be what those people would chose to do with their lives but hey, you can't always get what you want.

WTF?_2

dopester wrote: »

Oh no they won't. The market can withhold a trillion pounds faster than the BoE can get it printed.

I honestly don't know why you're so eager to see the high/hyper-inflation path !!!!!!. It is clear from previous posts you are on standby to buy a house, and leverage in to BTL.. for the "coming inflation" to see you whisked away to riches.

How on earth do you form the impression that I'm 'eager' to see hyper-inflation?

I call things as I see them, I see hyper-inflation as a possibility and strong inflation kicking off inside a couple of years as a given.

I don't want to see either - I am sitting atop a pile of cash and the sort of deflation you think is going to happen would suit me down to the ground.


As for BTL, it's something I will consider after I have my own house sorted.

It can be a smart investment - just because buying into BTL in the last few years of the boom was only for fools doesn't mean it will always be that way.

StevieJ

Another bear spat, oh the tension is mounting

StevieJ

!!!!!!? wrote: »

As for BTL, it's something I will consider after I have my own house sorted.

It can be a smart investment - just because buying into BTL in the last few years of the boom was only for fools doesn't mean it will always be that wa y.

Are there any mutual funds that deal in private properties rentals? I would think that BTL will soon be a very good investment but I could not be bothered with all that repair work and debt collection. I think that the market will not shrink as much as people think because once the yields improve than the BTLetter may be back with a vengeance.
See agreeing with !!!!!! wasn't that difficult

tomstickland

Here's Generali's latest photo:

dopester

Count_Dante wrote: »

American History X, I believe.

I was actually thinking of that episode of The Sopranos, where Tony, boss of New Jersey, gets in to a fury that one of the New York crew openly gave his daughter a crude threat. That they involved his family at all.

Now you mention it though, I do recall that awful scene in American History X.

StevieJ

dopester wrote: »

I was actually thinking of that episode of The Sopranos, where Tony, boss of New Jersey, gets in to a fury that one of the New York crew openly gave his daughter a crude threat. That they involved his family at all.

Now you mention it though, I do recall that awful scene in American History X.

Actually you replied with that, the clip was spooky (why did you delete it?) Was the Sporanos that good (it looked it :eek:).

zedyy

im thinking of buying gilts

Generali

tomstickland wrote: »

Here's Generali's latest photo:

To be fair that was taken after I discovered that Eng had been bowled out for 51 and I had to go to a barbie attended by a bunch of Aussie cricket fans.

Generali

zedyy wrote: »

im thinking of buying gilts

I'd go for index linked if I were you.