Today's Bear food

AnotherJoe

p1212 wrote: »

Ok, so then BoE buys bonds held by the fund managers for some money. Than how exactly this money gets into real economy, to stimulate inflation and wage inflation? I am just asking cause I don't know.

Even if you are a private investor having a few hundredK in a fund and you made well, you won't just suddenly take out the money and spend it in real economy Why ever not? What a ridiculous statement. Why would you not take some of it out and spend it?

So just explain me the process please in a bit more detail, I am eager to learn new things.

Stocks rise in value, plus you get dividends, you sell some shares / spend the proceeds, or dividends, or reinvest or a mixture. If this is a new concept for you, I presume you are 13?

Mortgagefreeman

p1212 wrote: »

I am eager to learn new things.

Ever thought of paying a visit to an Estate Agent?

chucknorris

AnotherJoe wrote: »

Stocks rise in value, plus you get dividends, you sell some shares / spend the proceeds, or dividends, or reinvest or a mixture. If this is a new concept for you, I presume you are 13?

Dividend income and also the gradual drawing down our share portfolio will be the main source of our retirement income.

cells

p1212 wrote: »

This is not a theory, this is in the news every day. European central bank, BoE etc... does QE every week! See, around 0.6 TRILLION pounds in government and private company bonds:

http://www.bankofengland.co.uk/markets/Pages/apf/default.aspx

Let me explain our central bank prints money to buy government and PRIVATE COMPANIES debt. How could these companies ever go broke? They can't, they just issue bonds and even if market participants wouldn't buy them cause they worth nothing our central bank will still buy them up, making sure they can't go broke.

They've just said they will soon start buying stocks. Yes, our central bank will print money and will gamble it on the stock market and if some big company would go down, the BoE can just buy up their stocks and stop the stock from falling further, all in the name of "stability". They are abusing the free market every day with billions.

Or if you know this better then can you please explain what we have done with this 0.6 trillion exactly and why we haven't spent it on NHS or building houses? We could've built 2.5 MILLION houses from this money for 200K each. Or 5 million flats for 100K each. Or give 1.5 billion every week to NHS in the last 8 years.

The current government wastes much more money than brexits 350 million per week, who is responsible for this?

You should read more books about economy and ask these questions instead of bashing people who tell you the truth.

More trash.

The BOE exchanges gilts for cash. The government spends this cash mostly on the poor the old and the sick

The BOE if they start buying corporate paper I'm sure will only buy the safest class and only of there is a lot of equity to back it up. They could perhaps even buy MBSs again only the safest class eg below 60% LTV

Also what the BOE is doing is not all that special. A private bank can also 'print' money in exchange for gilts they generally don't as gilts offer a poor return.

westernpromise

p1212 wrote: »

How could these companies ever go broke? They can't, they just issue bonds and even if market participants wouldn't buy them cause they worth nothing our central bank will still buy them up, making sure they can't go broke.

Don't be silly.

When a bond is sold does the issuer stop paying the coupon?

wotsthat

p1212 wrote: »

Ok, so then BoE buys bonds held by the fund managers for some money. Than how exactly this money gets into real economy, to stimulate inflation and wage inflation? I am just asking cause I don't know.

Even if you are a private investor having a few hundredK in a fund and you made well, you won't just suddenly take out the money and spend it in real economy (apart from investing it in somewhere else - which means buying a house in the current climate - that's why house prices are going up).

So just explain me the process please in a bit more detail, I am eager to learn new things.

I thought you had all the answers yet here you are complaining your speculative gamble on house prices went wrong.

Being a simple soul I don't have all the answers for you. Whenever I wanted to buy a house, found somewhere I liked and could afford it I just bought it. That's what most people do and it usually works out just fine.

Sheeple 1 HPC 0

p1212

AnotherJoe wrote: »

In any case, I dont need to read a book to see that house prices rose whilst you were shorting them despite actually believing that government action would make them rise ! I"m actually acting on your beliefs, now you've convinced me stock markets will rise so I've bought stocks. Have you?

We have different goals and viewpoints. In your world maybe everyone is shorting or having long positions and checking their paper wealth every day.

I am not interested in investments etc..., I am interested in having a place to live in and forget this mess created by your type forever. I don't care working hard for things.

As the only thing you can think of is free, unearned money, you buy stocks and hope they are going up. You want house prices to go up as you have invested there too. You will teach your children to get into debt, speculate, buy stocks and wait for them going up without any value created. I teach them to work hard, never get into debt, create something of a real value and just ingore your type.

This irrational risk taking and everyone wanting free unearned money thingy thrived with governments abusing free markets, more and more people got lured into this idiotism, and now everyone is in godmode thinking they are so clever that they will always win by doing nothing.

p1212

wotsthat wrote: »

I thought you had all the answers yet here you are complaining your speculative gamble on house prices went wrong.

Being a simple soul I don't have all the answers for you. Whenever I wanted to buy a house, found somewhere I liked and could afford it I just bought it. That's what most people do and it usually works out just fine.

Sheeple 1 HPC 0

Now that is impossible today. That's the problem.

HAMISH_MCTAVISH

p1212 wrote: »

Now that is impossible today. That's the problem.

The million people a year that buy houses in the UK would disagree with you.

wotsthat

p1212 wrote: »

Now that is impossible today. That's the problem.

It really isn't. Try buying something you can afford instead of playing the blame game because you can't afford what you think you deserve.

It's HPC all over. Some of them think they can't settle down because they don't own a house - it's not - it's because people who attend pity parties aren't than fun to be around.