Investors are losing confidence in Prime Minister Gordon Brown’s economy.

Graham_Devon

Rochdale_Pioneers wrote: »

I think you are looking in the wrong direction. QE providing a magic bluuet to quickly kill the recession and bring back the good times was never going to happen, nor was this the reason given for pursuing the policy.

QE to stop Britain sliding into the kind of pit that Germany, Spain, Ireland etc are in? Yes. Its not what did we gain as what did we avoid suffering.

Tell these people they are also looking in the wrong direction then...

http://forums.moneysavingexpert.com/showthread.html?t=1801549

Rochdale_Pioneers

Graham_Devon wrote: »

Tell these people they are also looking in the wrong direction then...

http://forums.moneysavingexpert.com/showthread.html?t=1801549

Why? I also have doubts over QE. Like I said, its not a magic bullet....

Wookster

Rochdale_Pioneers wrote: »

QE to stop Britain sliding into the kind of pit that Germany, Spain, Ireland etc are in? Yes. Its not what did we gain as what did we avoid suffering.

!!!!!!!! - you don't know what you're talking about!!!

Germany, Spain & Italy's problems are entirely different to the UK's and QE would do nothing to change that.

Generali

Thrugelmir wrote: »

The reason for the issue with wholesale funding is that the banks will in competition with the Government for the same overseas funds.

Perhaps I'm being a bit thick but isn't this 'Crowding Out' of banks trying to borrow by Governments and then Governments lending money on to Banks mean that the Governments are solving a problem they created?

Graham_Devon

Wookster wrote: »

!!!!!!!! - you don't know what you're talking about!!!

Germany, Spain & Italy's problems are entirely different to the UK's and QE would do nothing to change that.

Hence directing to the thread

Rochdale_Pioneers

Wookster wrote: »

!!!!!!!! - you don't know what you're talking about!!!

Germany, Spain & Italy's problems are entirely different to the UK's and QE would do nothing to change that.

And yet the ECB - the central bank of Germany, Spain and Italy - is busy doing QE. You should ring them and tell them to stop.....

Thrugelmir

Generali wrote: »

Perhaps I'm being a bit thick but isn't this 'Crowding Out' of banks trying to borrow by Governments and then Governments lending money on to Banks mean that the Governments are solving a problem they created?

How is the Government going to lend to banks in the years to come ? QE in the short term has solved short term liquidity. The UK banks are global players. Wholesale deposits are required to fund their lending books and maintain capital ratios. Without it the banks will have to contract.

purch

You should ring them and tell them to stop.....

Forumonics :rolleyes:

Wookster

Rochdale_Pioneers wrote: »

And yet the ECB - the central bank of Germany, Spain and Italy - is busy doing QE. You should ring them and tell them to stop.....

You really have your head somewhere the sun don't shine!

Shall we look at the problems?

Spain:
Enormous property bubble which pales in comparison to the real problem: uncompetitive, unproductive economy; inflexible, rigid labour market & high government debt.

Germany:
Low internal demand, economy fuelled by external consumption (driven in turn by cheap credit)

Italy:
Similar to Spain, without the property bubble.

How do you think QE is going to make things better???

Rochdale_Pioneers

Wookster wrote: »

You really have your head somewhere the sun don't shine!

Shall we look at the problems?

Spain:
Enormous property bubble which pales in comparison to the real problem: uncompetitive, unproductive economy; inflexible, rigid labour market & high government debt.

Germany:
Low internal demand, economy fuelled by external consumption (driven in turn by cheap credit)

Italy:
Similar to Spain, without the property bubble.

How do you think QE is going to make things better???

What I think about it is irrelevant - I'm not the one making statements about the effectiveness of QE in the Eurozone, you are. What do the ECB think about it - thats the question. As you apparently know better than they do then shouldn't you ring them?