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Green across the Board as printing takes off
Glen_Clark
Posts: 4,397 Forumite
Well looks like its finally happening.
I hope those who sold in a falling market bought back in time
Whats going to happen now?
I can remember when the British Government embarked on mass housebuilding, affordable housing was seen as success.
Nowadays its all about restricting housebuilding. UNaffordable housing is seen as success and given fashionable buzz words like 'Buoyant Housing Market' Trouble is their 'buoyant housing market' is sinking the rest of the economy as it sucks the QE money away from productive industry, and ratchets up the housing benefit bill to bridge the gap between rents and the basic wage.
But its different across the channel where they don't artificially restrict the housing supply with onerous planning laws.
So it will be interesting to see how QE really works.
I hope those who sold in a falling market bought back in time
Whats going to happen now?
I can remember when the British Government embarked on mass housebuilding, affordable housing was seen as success.
Nowadays its all about restricting housebuilding. UNaffordable housing is seen as success and given fashionable buzz words like 'Buoyant Housing Market' Trouble is their 'buoyant housing market' is sinking the rest of the economy as it sucks the QE money away from productive industry, and ratchets up the housing benefit bill to bridge the gap between rents and the basic wage.
But its different across the channel where they don't artificially restrict the housing supply with onerous planning laws.
So it will be interesting to see how QE really works.
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
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Comments
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yes how is this all going to pan out? who knows
frugalEarly retired in summer 2018 and loving it0 -
Will it all go red again on Monday if Greece votes in the party that could precipitate leaving the Euro.
So many questions!Remember the saying: if it looks too good to be true it almost certainly is.0 -
. and all involving politics?So many questions!
As far as I can see, share prices nowadays seem to be driven indirectly more by politics, than by fundamentals.“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Glen_Clark wrote: »I hope those who sold in a falling market bought back in time
When equities dipped, I topped up to keep things balanced, so yes.
And BTW, QE can't be accurately described as money printing as purchases aren't (yet!) directly from governments, and the banks hold just as others would (so coupons and maturity paid) so no monetisation. Yet.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Glen_Clark wrote: ». and all involving politics?
As far as I can see, share prices nowadays seem to be driven indirectly more by politics, than by fundamentals.
I would have said people chasing yield. As the value of money depreciates. If all the major players play the same game then who is the winner going to be?
Draghi appears to be attempting to save the Euro.0 -
Do you know of a better way to describe it, so the layman understands what it means?gadgetmind wrote: »QE can't be accurately described as money printing .“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
An experiment, virtual money printing confined for now within the workings of the unaudited banking cabal, with costs and consequences for everyone else yet to be realised or understood.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
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One of the personal finance sites has recommended hedging if buying into a euro fund. This does seem like sensible information as the euro is likely to slide against the pound. However, the dollar seemed to hold up quite well during the US QE.
Personally I'm still thinking on the best way to take advantage of EU QE. There may be better alternatives to a hedged euro fund.0 -
When compared to other currencies that were also falling in value it did.However, the dollar seemed to hold up quite well during the US QE
But compared to solid currencies like the Swiss Franc it did not.
Rather than compare it with another falling currency, when the price of existing assets like land is rising that effectively means the value of the currency is falling. Land has quadrupled in price since QE began“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Glen_Clark wrote: »Do you know of a better way to describe it, so the layman understands what it means?
Well, I'm a layman, and I understand the concept of increasing the monetary base by buying financial assets in the open market, but then not "monetising" this by leaving the assets intact with all coupons and maturity payments still due.
Of course, what's interesting is how to "unwind" this situation, and I can see three different approaches, but let's maybe leave that until later.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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