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McMcKinsey believe households have lost out through QE
Comments
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HAMISH_MCTAVISH wrote: »Nonsense....
NR was a profitable company taken out by circumstances entirely beyond it's control.
Nobody could reasonably have predicted a global liquidity crisis as a result of fraudulent ratings on American RMBS, and had the UK emergency liquidity regime been sufficiently robust it shouldn't have mattered one jot.
A perfect example of a liquidity crisis being allowed to turn into a solvency crisis through inaction and policy responses that were too little, too late.
Overtrading
When a business has insufficient finance to sustain its level of trading. A business is said to be overtrading when it tries to engage in more business than the investment in working capital will allow. This can happen even in profitable circumstances.
http://www.lse.co.uk/financeglossary.asp?searchTerm=&iArticleID=1103&definition=overtrading"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 Muruganantham0 -
grizzly1911 wrote: »Overtrading
Well aware of the definition, thanks.
But nobody, and I mean nobody, thought the entire global financial system would freeze up catastrophically and overnight.
It was the sort of high impact, low probability, once in a Millennium type of event that ranked somewhere alongside Supervolcano or Giant Asteroid strike planning in most organisations.
To blame Northern Rock for having that business model would be like blaming Whitehall for failing to build a giant dome impervious to asteroid strikes over the entire UK when, (and it will be when, not if) the next city-killing lump of space rock comes along.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Well aware of the definition, thanks.
But nobody, and I mean nobody, thought the entire global financial system would freeze up catastrophically and overnight.
It was the sort of high impact, low probability, once in a Millennium type of event that ranked somewhere alongside Supervolcano or Giant Asteroid strike planning in most organisations.
To blame Northern Rock for having that business model would be like blaming Whitehall for failing to build a giant dome impervious to asteroid strikes over the entire UK when, (and it will be when, not if) the next city-killing lump of space rock comes along.
If they hadn't become so reliant on wholesale markets and worked within sensible limitations then there wouldn't have been such a magnified problem."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 Muruganantham0 -
grizzly1911 wrote: »If they hadn't become so reliant on wholesale markets and worked within sensible limitations then there wouldn't have been such a magnified problem.
So you do think the UK should build a giant dome over the entire country to guard against space rocks?
Or will you only be saying that when, not if, a giant space rock takes out a city?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »So you do think the UK should build a giant dome over the entire country to guard against space rocks?
Or will you only be saying that when, not if, a giant space rock takes out a city?
Why Northern Rock was doomed to fail.
http://www.telegraph.co.uk/finance/markets/2815859/Why-Northern-Rock-was-doomed-to-fail.html"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 Muruganantham0 -
grizzly1911 wrote: »Why Northern Rock was doomed to fail.
http://www.telegraph.co.uk/finance/markets/2815859/Why-Northern-Rock-was-doomed-to-fail.html
The Americans (ironic, given they caused this particular debacle) have a delightful expression which sums up that article.
It's "Monday Morning Quarterback".
Look it up....;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
grizzly1911 wrote: »Why Northern Rock was doomed to fail.
http://www.telegraph.co.uk/finance/markets/2815859/Why-Northern-Rock-was-doomed-to-fail.html
It's all very well for you to post that now.
But I wouldn't mind guessing that Hamish will be along soon accusing you of being a "Monday Morning Quarterback".0 -
McKinnseys are underestimating the impact of QE and the fiscal crisis on young people in Britain We are not through this yet and youth unemployment remains high.
Due to quantitative shares and house prices in the UK are much higher than they would othewise be. Here it is the older (owners of property and shares) who have been benefitting, while the young have to take on large mortgages topped up by Uncle George to get onto the housing ladder and the first two generations of university students will have to pay interest for 30 years on tuition fee loans, while the generations before them didn't pay tuition fees.0 -
What are quantative shares?McKinnseys are underestimating the impact of QE and the fiscal crisis on young people in Britain We are not through this yet and youth unemployment remains high.
Due to quantitative shares and house prices in the UK are much higher than they would othewise be. Here it is the older (owners of property and shares) who have been benefitting, while the young have to take on large mortgages topped up by Uncle George to get onto the housing ladder and the first two generations of university students will have to pay interest for 30 years on tuition fee loans, while the generations before them didn't pay tuition fees.0 -
McKinnseys are underestimating the impact of QE and the fiscal crisis on young people in Britain We are not through this yet and youth unemployment remains high.
Due to quantitative shares and house prices in the UK are much higher than they would othewise be. Here it is the older (owners of property and shares) who have been benefitting, while the young have to take on large mortgages topped up by Uncle George to get onto the housing ladder and the first two generations of university students will have to pay interest for 30 years on tuition fee loans, while the generations before them didn't pay tuition fees.
What would have happened if there was no QE houses prices might have been lower but that's not much good if the economy has collapsed.0
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