UK falls back into recession

pmbug

Your Host
Administrator
Messages
7,424
Reaction score
9
Points
193
Location
Texas
Well, that's what the speculation about QE3 being announced/signalled today is all about. Can't let the mortgage dam spill out and overwhelm all those "green shoots".
 

rblong2us

Yellow Jacket
Messages
2,088
Reaction score
8
Points
153
Location
off world
The wierd thing is that from my limited perspective, things are on the up.

Definately more construction work going on and spec house building has picked up even as social housing schemes have been parked.

Rush hour traffic jams are as horrible as they were in the 'good times', which to me is a way of reading confidence and general activity.

Its been said that the reduction in mortgage payments due to ZIRP, has played its part and i suspect our gov has talked about cutting more than it has actually cut, as they try to convince the markets and Moodys that GBPLC is in good hands.

So, even though we know things are still badly out of kilter and that all gov data must be considered suspect, this report surprises me.
 

benjamen

Yellow Jacket
Messages
1,620
Reaction score
0
Points
0
Location
Migratory
The wierd thing is that from my limited perspective, things are on the up.

Definately more construction work going on and spec house building has picked up even as social housing schemes have been parked.

Rush hour traffic jams are as horrible as they were in the 'good times', which to me is a way of reading confidence and general activity.

Its been said that the reduction in mortgage payments due to ZIRP, has played its part and i suspect our gov has talked about cutting more than it has actually cut, as they try to convince the markets and Moodys that GBPLC is in good hands.

So, even though we know things are still badly out of kilter and that all gov data must be considered suspect, this report surprises me.
I have seen similar indicators, but I feel like it is just the calm before the storm. :shrug:
 

Renewed Investor

Fly on the Wall
Messages
39
Reaction score
0
Points
0
The Bank Of England have anounced that they intend to basically print their way out of this mess by accumulating more and more "assets".
 

rblong2us

Yellow Jacket
Messages
2,088
Reaction score
8
Points
153
Location
off world
they must have had a chat with the ratings agencies then, cos all the talk about cutting was based on a negative outlook that threatened our 'AAA' rating .......

And its this kind of thing that has me slowly being convinced that while we all project current trends into various 'walls', the rule writers change the shape of the predicted impact.

So while we have all been convinced things will unravel, as long as they can rewrite the rules, things muddle along.

Until something unexpected happens .......
 

pmbug

Your Host
Administrator
Messages
7,424
Reaction score
9
Points
193
Location
Texas
they must have had a chat with the ratings agencies then, cos all the talk about cutting was based on a negative outlook that threatened our 'AAA' rating .......

And its this kind of thing that has me slowly being convinced that while we all project current trends into various 'walls', the rule writers change the shape of the predicted impact. .......
Exhibit "A": ISDA

It's clear that the banks are not going to allow themselves to take any losses. How much funny money does the Fed / ECB / etc. need to Ctrl+P into existence to cover their debt balloon? :rotflmbo: :noevil: :paperbag:
 

rblong2us

Yellow Jacket
Messages
2,088
Reaction score
8
Points
153
Location
off world
Exhibit "A": ISDA

It's clear that the banks are not going to allow themselves to take any losses. How much funny money does the Fed / ECB / etc. need to Ctrl+P into existence to cover their debt balloon?
exactly !

sorry, a 95% writedown is not a credit event, cos we say so :judge:

and they deal with the MFinG unintended consequences with even more rule changes .........
 
Top