QE3 = £75bn

Graham_Devon

Shadow MPC Member is on the news now absolutely slamming this policy.

Suggesting none of this is going to be distributed, and there is an element of propping up the banks again. Suggests Mervyn and Co have taken a pre-emptive move to offset a recession rather than actually drive growth. He also suggests that this will fail much like the 200bn and we will now need even more QE at a sooner date than we might have done, and we are borrowing too much from tommorow.

Took the presenter somewhat by surprise it seems!

Graham_Devon

974 comments on this on the BBC article.

All editors picks are against QE. The entire first 2 pages are against more QE, and I can't be bothered reading any more as people are just dispairing.

Highest rated comment:

I don't understand why we continue to feed money into a banking system which then uses the money to shore up its own bank balance, pay itself lavish bonuses & refuses to issue loans.

Surely we should just give the money to taxpayers who would either use the windfall to purchase goods or repay debts, in turn the money would filter through to where it’s needed, businesses & HMRC.

Lowest rated comment (amused me!)

At last.

Turnbull2000

Looks like rates won't even breach 1% over the next five years. We're already seeing mortgage rates at less than half of inflation and a the lowest levels in history. Expect more records to be set over the coming decade.

Private pensions will also take another comprehensive battering, so more and more people will inevitably look for an alternative...

Graham_Devon

Turnbull2000 wrote: »

Looks like rates won't even breach 1% over the next five years.

They really don't have too now.

Interest rates are on their last legs now, hence more QE.

There is absolutely no denying that for those who are ok, who got their mortgages years ago and doing very well now thank you very much. Absolutely no denying that at all, and if you want those people to be congratulated, I'm happy to do so, though I don't know what they are actually being congratulated for.

However, the upcoming generation cannot afford to relieve them of these assets they hold so dear. For every cheer that you are doing better, someone else is paying the price through higher costs of living.

Turnbull2000

Graham_Devon wrote: »

They really don't have too now.

Interest rates are on their last legs now, hence more QE.

Aye, and when this round of QE fails, expect another.

Graham_Devon

Turnbull2000 wrote: »

Aye, and when this round of QE fails, expect another.

And then another, and another and another, meanwhile the debts just build and build.

Can you not see an issue, or can you literally only see a very short sighted viewpoint?

If you start with a situation that a crash due to debt is a bad thing, adding more and more debt only has one result. You cannot get the type of growth needed to pay off these sums. Shadow MPC stated this earlier. Therefore, the crash will just be bigger. Already, they are talkng about simply rolling over QE1, as they cannot reign it in.

That's precisely the reason the system went down in the first place.

Turnbull2000

Graham_Devon wrote: »

And then another, and another and another, meanwhile the debts just build and build.

Can you not see an issue, or can you literally only see a very short sighted viewpoint?

If you start with a situation that a crash due to debt is a bad thing, adding more and more debt only has one result. You cannot get the type of growth needed to pay off these sums. Shadow MPC stated this earlier. Therefore, the crash will just be bigger. Already, they are talkng about simply rolling over QE1, as they cannot reign it in.

That's precisely the reason the system went down in the first place.

Of course I can see the issue. But I'm aware politicians don't want to deal with it, and will pretty much always opt to kick the can down the road.

Graham_Devon

Turnbull2000 wrote: »

Of course I can see the issue. But I'm aware politicians don't want to deal with it, and will pretty much always opt to kick the can down the road.

So if you can see the issue, why are you celebrating it?

Turnbull2000

Graham_Devon wrote: »

So if you can see the issue, why are you celebrating it?

Not quite celebrating it. But one can only seek to make the most of the circumstances the government creates.

Graham_Devon

Turnbull2000 wrote: »

Not quite celebrating it. But one can only seek to make the most of the circumstances the government creates.

You mean "I'm alright Jack"?