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Bubble Warning from senior economist

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Comments

  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Improving liquidity and helping reduce interest rates don't assist the the ability to lend and continue to) at affordable rates?.
    Sorry I don't understand your post.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    macaque wrote: »
    Clarification
    A small pr1ck is the CEO of a small bank. A big pr1ck is the CEO of a big bank

    Your description is some years out of date. .Most likely to now be a retired individual who spends their time doing charitable works. As they've pocketed the loot and left the financial industry.
  • Dribley
    Dribley Posts: 178 Forumite
    What have you been 'ringing' Turdpit? ;)

    I think you'll find he's probably been rimming :eek:
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    chucky wrote: »
    Sorry I don't understand your post.

    Does QE assist liquidity?

    Does increased liquidity allow Banks to lend or at least not reduce borrowing?

    If there is increased money available to lend more easily will this not depress interest rates?
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • TruckerT
    TruckerT Posts: 1,714 Forumite
    chucky wrote: »
    Actually one type of debt was replaced using another asset class to improve liquidity

    I guess you are one of those who has been studying economics for years, and has lost the ability to recognise a completely meaningless statement!

    As I posted on another thread, accountancy skills have a lot in common with circus skills - they look and sound really impressive, but they're very often just a load of balls.

    TruckerT
    According to Clapton, I am a totally ignorant idiot.
  • globalds
    globalds Posts: 9,431 Forumite
    TruckerT wrote: »
    The bubble which Didn't burst in 2007/8

    TruckerT

    There you go ..fixed that for you
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Does QE assist liquidity?

    Yes
    Does increased liquidity allow Banks to lend or at least not reduce borrowing?

    Yes
    If there is increased money available to lend more easily will this not depress interest rates?

    Yes, that's the point of QE.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    TruckerT wrote: »
    I guess you are one of those who has been studying economics for years, and has lost the ability to recognise a completely meaningless statement!
    No that's not me. Do you want to try again?
    TruckerT wrote: »
    As I posted on another thread, accountancy skills have a lot in common with circus skills - they look and sound really impressive, but they're very often just a load of balls.

    TruckerT
    You can post your TruckerT posts as much as you like but it doesn't mean you are right.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Does QE assist liquidity?

    Does increased liquidity allow Banks to lend or at least not reduce borrowing?

    If there is increased money available to lend more easily will this not depress interest rates?
    Yes the plan for QE was to increase liquidity and to allow banks to lend more at lower rates hence why interest rates went down to 0.5%.

    Has it worked? That's a completely different discussion.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    chucky wrote: »
    Yes the plan for QE was to increase liquidity and to allow banks to lend more at lower rates hence why interest rates went down to 0.5%.

    Has it worked? That's a completely different discussion.


    Well if we say it hasn't worked no doubt someone else will pop up and say it would have been worse if they hadn't.

    So allowing banks to lend more (new or not calling in existing debt) and depressed interest rates hasn't helped support property linked lending?

    I don't dispute that wasn't it's sole function but it will have had a sizeable impact.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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