Debate House Prices


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Hmm, pound is looking a bit scary today!

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Comments

  • worldtraveller
    worldtraveller Posts: 14,013 Forumite
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    edited 20 February 2013 at 8:50PM
    The pound continues to fall against USD and is currently around the USD1.52 level (USD1.5195 low today currently).

    It's been punctuated further by the minutes from the US Fed's latest meeting which showed that policy makers remain divided on the timing and amount of QE. Some members are saying that QE may need to end prior to the previously announced goal of employment improvements.

    This is in stark comparison to the UK MPC, which is possibly looking towards further QE, as stated in my earlier posts.
    There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
  • globalds
    globalds Posts: 9,431 Forumite
    Did someone know we were going to lose our AAA ?
  • Generali
    Generali Posts: 36,411 Forumite
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    globalds wrote: »
    Did someone know we were going to lose our AAA ?

    The UK's been on negative watch (ie we're planning on downgrading the rating) for quite a while, perhaps more than a year, so it's no great surprise.

    As the UK issues debt in pounds and can print unlimited pounds, all borrowers will be repaid in full as ultimately the BoE can simply print the money to repay the debt.
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
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    edited 23 February 2013 at 11:58AM
    They downgraded presumably because despite the bonds can be paid in cash they cannot easily repay the value
    Whats the credit rating for Zimbabwe if I may slip into hyperbole for a second :laugh: They paid everyone twice over, aint that unfair they get a bad rap

    Im not sure the downgrade means much, it is only reflecting prior events and in fact we probably dont deserve A even. Its more news as a wider issue in that others will suffer in comparison possibly ?
    France will be cheering this :p

    UZ4OY6s.jpg

    Moodys wont downgrade USA as they dont want to be prosecuted retrospectively

    Generali wrote: »
    Ask yourself what has really changed over the last couple of months (I'll give you a clue, look at ECB and BoE Central Bank policies announced over the past 2 months).

    There has been no downgrade and no change to the possibility of a downgrade. There have been changes to Central Bank policies however.

    I dont have one for BOE but ECB has been reducing its balance sheet where as FED is spending a trillion and also BOE I expect

    ecbvsfed.jpg

    Last I heard ECB has made a profit of 11bn by buying up this bad debt, take a bow :laugh:
  • purch
    purch Posts: 9,865 Forumite
    Generali wrote: »
    The UK's been on negative watch (ie we're planning on downgrading the rating) for quite a while, perhaps more than a year, so it's no great surprise.

    The only surprise is the timing. Why 22nd February 2013 ?

    The outlook for economic growth hasn't changed.

    It has been dire for years, and anyone with half a brain knows it will be dire for many years to come.

    So why now?

    Why not 6 months ago, or 6 months hence ?

    Same difference ultimately.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    purch wrote: »
    The only surprise is the timing. Why 22nd February 2013 ?

    The outlook for economic growth hasn't changed.

    It has been dire for years, and anyone with half a brain knows it will be dire for many years to come.

    So why now?

    Why not 6 months ago, or 6 months hence ?

    Same difference ultimately.

    I dunno about the date, but I wondered if it was done at a weekend to reduce possible damage to markets? For instance, the pound was falling, down a cent, and then the market shut before people had time to react.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    purch wrote: »
    So why now?

    Fiscal cliff is out the news for a few weeks.

    Nothing of significant interest happening in Europe.

    So attention finally turning to the UK.
  • Mrs_Bones
    Mrs_Bones Posts: 15,524 Forumite
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    purch wrote: »
    The only surprise is the timing. Why 22nd February 2013 ?

    The outlook for economic growth hasn't changed.

    It has been dire for years, and anyone with half a brain knows it will be dire for many years to come.

    So why now?

    Why not 6 months ago, or 6 months hence ?

    Same difference ultimately.

    Could it be because of Osbornes exuberance in counting what he thought he'd get for the sale of 4G in to the figures he used in his Autumn Statement. It fell rather short of what he expected this week and sent those figures out of the window. Is it really a coincidence that our rating has been downgraded the same week as the sales figures were realised?
    [FONT=&quot]“I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” ~ Maya Angelou[/FONT][FONT=&quot][/FONT]
  • sabretoothtigger
    sabretoothtigger Posts: 10,036 Forumite
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    edited 23 February 2013 at 2:21PM
    Thrugelmir wrote: »
    Fiscal cliff is out the news for a few weeks.

    The word on the block now is sequester. Same story sounds cooler.

    USA is definitely the most screwed out of the lot I reckon.
    I have no idea why they arent exporting more of what they got though. They have granted 1 single natural gas export license, whys it even need permission. I hope I got that wrong
    We might have a budget problem but they got governance problems it seems

    quick google
    http://www.heritage.org/research/reports/2013/02/us-natural-gas-exports-lift-restrictions-and-empower-the-states

    more waffle http://www.youtube.com/watch?v=N2qKuMjQvR0
    PolitiFact ‏@politifact
    Obama: Sequester will force prosecutors to "let criminals go." We say oversimplification: Mostly False. http://!!!!!!/hYgMn
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    Graham_Devon wrote: »
    I dunno about the date, but I wondered if it was done at a weekend to reduce possible damage to markets? For instance, the pound was falling, down a cent, and then the market shut before people had time to react.

    Maybe but I would've thought it was priced in as the news isn't unexpected.

    We'll see on Monday!
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