Eurozone chooses inflation - ECB cut rates by 0.25%

OptionARMAGEDDON

http://www.bbc.co.uk/news/business-15575285

:j

No rate rises for EU/UK for quite a while I reckon. I get the feeling we have the big crunch coming up, after which we can start to get back to normal. I wouldnt mind betting we are about to lose a few banks in the process and lending is going to get tighter than a tight thing, but for those who have prepared for this and leveraged up after the first asset price fall, its pretty much time to sit back and deleverage at record low rates of interest and further incoming stimulus spending. :cool:

Really2

The dullards should never put it up until they knew growth had taken a strong foot hold.

shortchanged_2

I don't think they are choosing inflation. It's what Really2 says in that it is a reflection that the economies are now on a downward spiral and they are trying to stimulate their economies.

All a little to late I'm afraid.

ILW

If they truly wanted to stimulate growth, they would dump much of teh legislation that restricts business for a year or two. But being Europe they could not bear to reduce legislation as they see their major role as creating it.

OptionARMAGEDDON

regulation = tax income.

ILW

OptionARMAGEDDON wrote: »

regulation = tax income.

No it does not, generally just costs to enforce.

OptionARMAGEDDON

What do you call the money made in income tax by all the tw@'s employed to enforce said regulation?

Flight2quality

OptionARMAGEDDON wrote: »

lending is going to get tighter than a tight thing,

I think you are right on, some talk as if we had hard to get credit and talk as if we will have easy credit again soon.

I say we still have easy credit compared to how things will be soon.

House prices will fall further when the easy credit we still have now is a thing of the past.

It doesnt matter how many people would fancy living in a certain house all that matters is who can raise the funds to buy it.

Yes population is increasing in the UK but this is true in almost every other country developing or developed. House prices are still generally falling all around the world. As credit get tighter the fall will pick up speed.

Dan:_4

OptionARMAGEDDON wrote: »

No rate rises for EU/UK for quite a while I reckon.

Finally, people are starting to get this.

Pimperne1

Flight2quality wrote: »

I think you are right on, some talk as if we had hard to get credit and talk as if we will have easy credit again soon.

I say we still have easy credit compared to how things will be soon.

House prices will fall further when the easy credit we still have now is a thing of the past.

It doesnt matter how many people would fancy living in a certain house all that matters is who can raise the funds to buy it.

Yes population is increasing in the UK but this is true in almost every other country developing or developed. House prices are still generally falling all around the world. As credit get tighter the fall will pick up speed.

Population increasing, very few forced sellers equals house price stagnation for the relatively long term.

shortchanged_2

Pimperne1 wrote: »

Population increasing, very few forced sellers equals house price stagnation for the relatively long term.

Well I suppose if we get stagnation for the next 20 odd years then the housing market will eventually be back on the right track.