Recession may be over tomorrow

purch

You can see it in the disconnect between M0 and M4 money supply figures

There is clearly a huge 'disconnect' between the Governments version of what QE would mean, and the actual results.

Generali

kabayiri wrote: »

This may be a silly question, but...

why dont they bypass the banks?

Give direct grants for R&D, product development, or expansion plans etc.

Because the Government made a political decision to prop up the banks rather than let them go bust. As soon as they did that they went down a very expensive path (potentially).

My opinion is that insolvent banks should be nationalised and wound up, not propped up. Nobody voted for me though (not that I gave them the chance) so I don't get to do that.

Generali

purch wrote: »

There is clearly a huge 'disconnect' between the Governments version of what QE would mean, and the actual results.

Just as there's a big difference between "An end to Tory Boom and Bust" and ending booms followed by 'busts'.

kabayiri

I'm sorry to be in question mode, but....

Have we to resign ourself to an economy centred on the City of London? What does this mean for the regions?

I don't see any great plans to generate other revenue streams outside Finance.

I do know it feels tough right now in Manchester.

GSXRCarlos

the new banking code should see an impact, i expect house prices to remain static, and FTB can't easily get into the market

Generali

kabayiri wrote: »

I'm sorry to be in question mode, but....

Have we to resign ourself to an economy centred on the City of London? What does this mean for the regions?

I don't see any great plans to generate other revenue streams outside Finance.

I do know it feels tough right now in Manchester.

Well the Great New Labour Myth for the past 12 years has been that the areas ruined by years of Tory power have been brought back to life by Labour.

The fact is AIUI that the regions apart from London, SE & SW England and (arguably) Scotland have been handsomely subsidised by London, SE England and (very arguably) Scotland. SW England drops out BTW as it pays out in tax pretty much precisely what it gets back in spending.

So high falutin finance has gone off the boil for a while meaning the SE and London has less money to hand out to the rest of the country. That means the myth is shown as such, the economies of much of Northern England haven't been fixed, just propped up.

My Granny lived just outside New Mills and I saw a lot of the destruction of Northern industry in the 1980s as her neighbours lost their jobs. I don't see much of consequence that has replaced it since 1997, only subsidies. Subsidies rely on the payer being willing and able to continue paying. Much better to make your own way in the world.

kabayiri

Do you remember the Top Gear shuttle episode ?

The guys behind that were based in Glossop, just up the road.

We still have some damn clever engineering people in this country (he says, with biased interest).

We just don't seem to value engineers anymore. I just finished a call centre system, 2 of the lads working there (team leaders), one was a trained Civil engineer, and the other had a Phd in physics, and had worked on the Hadron collider!

These are bright people, not really being utilised well.

Generali

kabayiri wrote: »

Do you remember the Top Gear shuttle episode ?

The guys behind that were based in Glossop, just up the road.

We still have some damn clever engineering people in this country (he says, with biased interest).

We just don't seem to value engineers anymore. I just finished a call centre system, 2 of the lads working there (team leaders), one was a trained Civil engineer, and the other had a Phd in physics, and had worked on the Hadron collider!

These are bright people, not really being utilised well.

Unfortunately Britain doesn't value engineers, they ar widely mocked as 'boffins' or 'geeks' or whatever.

I think the world and certainly the UK needs more engineers. !!!!!! was the industrial revolution based upon other than engineering? (apart from slavery, the results of enclosure and economic problems in Holland).

mbga9pgf

Cant believe Gordy managed to !!!! it!!! With over 175 billion pumped in the system and a public sector deficit of 200 billion, this is bad, bad news....

Thrugelmir

michaels wrote: »

Are we seeing a huge disconnect between the financial sector being buoyed into a QE bubble and the real economy to which the stimulus is resolutely failing to percolate?

Other than Goldman Sachs where is the evidence of the recovery in the Financial Sector?