'I messed up' - David Cameron

Degenerate

Mr_Mumble wrote: »

Well, not everyone can be right all the time. Pedantically I don't see what's wrong with "minimal regulation". Stating: "No private bank is allowed to lend more than 10% of the national government's GDP", is pretty minimal regulation

Nope, that would be very heavy regulation. Whether regulation can be regarded as heavy or light is dependent on the effect it has, not the number of words.

StevieJ

Degenerate wrote: »

Nope, that would be very heavy regulation. Whether regulation can be regarded as heavy or light is dependent on the effect it has, not the number of words.

Well put

StevieJ

Emy1501 wrote: »

I hope you are all right but I just don't see someone as incompentent as Brown has been over the last 12 years pulling this off and the fact that it seems QE was mainly his idea across the world is my real concern

What a spiteful comment :eek:

Degenerate

Emy1501 wrote: »

Have their policies been proved right yet? Higher house prices are not everything. There is no evidence as of yet that QE is doing what it was intended to do.

Saying that only demonstrates your ignorance of what QE was intended to do. It was merely a monetary policy tool, used by the BOE to target the inflation rate when they ran out of interest rate headroom. The fact that our neighbours in the Euro zone just spent 6 months in deflation, while we kept broadly within our target band of 1-3% CPI shows it has indeed been effective.

Emy1501

StevieJ wrote: »

What a spiteful comment :eek:

Just an honest comment IMO. I'm happy to be proved wrong though and hope he pulls it off.

Emy1501

Degenerate wrote: »

Saying that only demonstrates your ignorance of what QE was intended to do. It was merely a monetary policy tool, used by the BOE to target the inflation rate when they ran out of interest rate headroom. The fact that our neighbours in the Euro zone just spent 6 months in deflation, while we kept broadly within our target band of 1-3% CPI shows it has indeed been effective.

http://news.bbc.co.uk/1/hi/business/7924506.stm

Maybe the person who commented on whether it is working or not does not have a clue?

StevieJ

sabretoothtigger wrote: »

Most of what QE did this year was to delay government spending cuts and create false dynamics that we cannot sustain. The real active effect would be the low rates I think which is backed by the QE keeping gilt yields low.

I dont think we've left recession yet so drawing any conclusions on QE effects is premature, the bill will come after the election and I suspect that stage will be the worst part as the damage goes unnoticed just now

I tell you what, if I was a betting man I would be laying odds of 1-20 that we are no longer in recession (=Q4 positive GDP).

Pete*G_4

i knew that at the heart of a good whinge would be a link to a daily mail story. needless to say, it's in the first post.

nice one

StevieJ

Emy1501 wrote: »

http://news.bbc.co.uk/1/hi/business/7924506.stm

Maybe the person who commented on whether it is working or not does not have a clue?

And your point is

The Bank believes this form of QE is different because it is "printing money" as part of monetary policy - to prevent deflation. It is not printing money to help the government finance its deficit.

Also, unlike Zimbabwe, this is a temporary policy: the Bank expects to sell the government bonds back into the market when the economy recovers.

Emy1501

StevieJ wrote: »

And your point is

The Bank believes this form of QE is different because it is "printing money" as part of monetary policy - to prevent deflation. It is not printing money to help the government finance its deficit.

Also, unlike Zimbabwe, this is a temporary policy: the Bank expects to sell the government bonds back into the market when the economy recovers.

So far, the Bank says it has spent £175bn on this policy - with another £25bn to be injected by the end of January 2010.
The surprisingly weak third-quarter GDP numbers, which showed the economy contracted by 0.4% between July and September, indicated the economy is still struggling to recover.
DeAnne Julius, a former member of the Monetary Policy Committee, says there's very little evidence that quantitative easing is providing any support for the "real" economy i.e. for industries other than banking.
However, she says there are some signs that it has helped the financial markets by keeping down the interest rate on government bonds.