QE a "monumental" mistake

MacMickster

Harry_Boyle wrote: »

I thought the cause for the credit crunch was the global housing bubble, where mortgage securities were erroneously given AAA rating by credit agencies? If that's not the case, then what did cause the current financial crisis?

I refer you to an answer in another thread from Hamish (who incidentally thanked you for your above comment).

Remember, it wasn't UK mortgage lending which broke the British banks.

The UK banks lost £15 on overseas mortgages for every £1 they lost in the UK.

sabretoothtigger

Thats why Lloyds is probably a good buy as most of their book was UK housing ? Ireland might be their biggest drag

the cause for the credit crunch was the global housing bubble

This is top secret info but nope, more like the housing bubble came from the tremors of credit crunch problems. First we go up then down, continually and violently till something irreparable breaks and they cant just cover it up.
At the moment we still have a boom in bond prices and so on, the wave machine is still in action and HPI was just part of that dynamic not the cause of it

DervProf

Graham_Devon wrote: »

Hi Reno.

How's you?

If it is RM (mark 3 ?), then that's a very polite "welcome back" Graham. I wonder how long it will be before you get less polite replies ?

If it is RM, then I hope my encounters with him are as reasonable as they were with RM mk 2 (Ellopoplulomupolopolus). He seemed to have changed his tune a bit, before getting PPRed again.