Inflation will rise faster than expected

Thrugelmir

Generali wrote: »

The fact is that the BoE has done an amazing job in near impossible circumstances. Look at the data from previous balance sheet recessions and look at how other countries are faring to see how this could have gone.

I bet the Germans still wish they had the Bundesbank in control not the ECB.

The BOE has received very little credit for the financial stability enjoyed in the past 4 years. I suspect that the UK banks are at least two years ahead of their continental counterparts. The Spanish banks are now only facing what the UK ones did back in 2008.

John_Pierpoint

Generali wrote: »

The fact is that the BoE has done an amazing job in near impossible circumstances. Look at the data from previous balance sheet recessions and look at how other countries are faring to see how this could have gone.

I agree, the economy has been walking on thin ice and fortunately the "Latin" Euro states, with their massive mal administration and their populist histrionics, have deflected attention from the dire debt in the UK.

Time will tell, eventually the market will observe the emperor's clothes.

[Has anyone else watched the BBC 4 documentary about the finances of Stoke on Trent? £20 million in Council Tax arrears, some outstanding for 10 years because the council will not allow the bailiffs to crack down on the "won't pays" - Basket case.
Civic pride - tonight I voted in a failing attempt to keep politicians and their party machines out of the police administration - Voter number 35 in a "community" of 800 = Zombie Nation]

Eellogofusciouhipoppokunu

Generali wrote: »

It's an easy stick to reach for: someone sticks their neck out when they make a prediction. The timid person doesn't make a prediction but can use the incorrect prediction of another to belittle them.

The fact is that the BoE has done an amazing job in near impossible circumstances. Look at the data from previous balance sheet recessions and look at how other countries are faring to see how this could have gone.

I wish I could thank this twice. It sums up the 'armchair economist' and the excellent job the BoE have been doing in just a single post.

thor

Eellogofusciouhipoppokunu wrote: »

I wish I could thank this twice. It sums up the 'armchair economist' and the excellent job the BoE have been doing in just a single post.

Apart from cutting boe rates and introducing QE what other 'amazing', 'excellent' work have they done?

Eellogofusciouhipoppokunu

thor wrote: »

Apart from cutting boe rates and introducing QE what other 'amazing', 'excellent' work have they done?

Look at the data from previous balance sheet recessions and look at how other countries are faring to see how this could have gone.

Graham_Devon

thor wrote: »

Apart from cutting boe rates and introducing QE what other 'amazing', 'excellent' work have they done?

What we are concentrating on here is looking at what they have done when it's all gone wrong.

What we should be possibly looking at is what they were doing leading up to it. Stable door and bolted spring to mind. But then they weren't much different to the rest.

John_Pierpoint

John_Pierpoint wrote: »

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[............
Civic pride - tonight I voted in a failing attempt to keep politicians and their party machines out of the police administration - Voter number 35 in a "community" of 800 = Zombie Nation]

Just for the records, Essex wide there was about a 12% turnout and the Tory mass vote came first with a "nearly a chief constable independent" a creditable second, especially on the single alternative vote 2nd round (62k v 58k votes).

Generali

thor wrote: »

Apart from cutting boe rates and introducing QE what other 'amazing', 'excellent' work have they done?

The kept the repo and money markets going when everything closed down in the 2008-9 period.

They have helped manage the negotiation and introduction of Basle 2.5 and Basle 3 in a much less disruptive way than could have been the case.

They have managed inflation expectations to keep Gilt yields low.

Many people make the mistake of thinking that the Monetary Policy Committee is the Bank of England. It isn't.

John_Pierpoint

Not the man who grabs back you motor because you have missed a payment on the HP.
http://en.wikipedia.org/wiki/Repurchase_agreement

More a sort of pawnbroker?

Generali

John_Pierpoint wrote: »

Not the man who grabs back you motor because you have missed a payment on the HP.
http://en.wikipedia.org/wiki/Repurchase_agreement

More a sort of pawnbroker?

I probably could have been clearer there. A repo is a loan secured against a bond. It's a cornerstone of short term bank liquidity.