Reply to: Short-selling ban is a 'mind-blowingly stupid' knee jerk reaction

[tim123]

You can tell your friend from me I take my hat off to him for working in manufactruring in this country. We need more like him.

I know, I think he's a nutcase as well

tim

[BrilloPad]

I'll tell my friend that his trip to work to run his manufacturing company is a dream that he has every day then.

tim

You can tell your friend from me I take my hat off to him for working in manufactruring in this country. We need more like him.

[tim123]

IMO it should be part of the measures used. its a very blunt tool and other measures can have loopholes.

I don't think it matters that there are loopholes. By making the rules you send out a message, to both banks and potential house buyers, that you think the market is overheated and that an attempt is to be made to stop price rises by fiscal intervention.

Most of the buying in the past three years has been by investors[1] who were only buying because they expected 15% pa rises to continue forever. Telling then that this is not going to happen will discourage most of them.

[1] many of those investors being normal occupiers.

Sorry but industry was laid low by excessive unions and very poor management..

I'll tell my friend that his trip to work to run his manufacturing company is a dream that he has every day then.

tim

[HairyArsedBloke]

People in this country think that the world owes us a living - in fact if it was not for our geography and English being the global language we would now be a third world country.

On the other hand - many think that the rest of the world believe that is owed a living by us and a decreasing proportion of the country speak English.

[BrilloPad]

I'm sorry, no!

Interest rates affect everybody. Most importantly they affect industry (what's left of it). You don't go around putting them up to stop a house price bubble, you use other measues for that.

tim

IMO it should be part of the measures used. its a very blunt tool and other measures can have loopholes.

Sorry but industry was laid low by excessive unions and very poor management.

People in this country think that the world owes us a living - in fact if it was not for our geography and English being the global language we would now be a third world country.

[AtW]

You don't go around putting them up to stop a house price bubble, you use other measues for that.

If other measures (strict limit on max salary multiplier for loans) worked then fair enough - the BoE however purposefully dropped rates in order for housing boom to continue - with absense of other controls they should not have allowed this to happen. All they did was to defer the problem into the future and making it worse this way. No doubt they were pushed by Brown as in my view BoE is not independent at all.

[tim123]

Yes it's their fault. Any honest person in place of BoE board would resign in protest against Govt who rigged stats measure they had to use. They did not do it and they had a job to look at long term consequences of what they were doing - rates should have been put up at least 5 years ago to stop creating housing bubble.

I'm sorry, no!

Interest rates affect everybody. Most importantly they affect industry (what's left of it). You don't go around putting them up to stop a house price bubble, you use other measues for that.

tim

[tim123]

They are not even 10% sure .

I know that they are not, I asked you to assume it was possible!

tim

[AtW]

It was their job to target one measure of inflation - which included chinese goods so rates wre higher than needed. Isn't it the fault of who set the target than those who met it?

Yes it's their fault. Any honest person in place of BoE board would resign in protest against Govt who rigged stats measure they had to use. They did not do it and they had a job to look at long term consequences of what they were doing - rates should have been put up at least 5 years ago to stop creating housing bubble.

Of course the Govt is guilty much further than BoE - Gordon Brown specifically as it was him who played this debt game in order to last long enough to be PM. I really don't think there are many examples in history of countries where minister engaged in such a long and dangerous game for sake of personal career only to have it crash on him once he got the job he wanted

[BrilloPad]

They are not even 10% sure because banks loaded themselves up with highly risky loans and leveraged obligations. The whole board of BoE should be fired for negligence - they used low rates to stimulate house bubble, now this is coming back with a vengeance. Greenspan and others should be giving interviews from max security federal prison, not anywhere else.

You gotto give Islam some credit (phun intended) here - interest rate credit limiting was certainly wise idea, this should have been one of the 10 commendments.

It was their job to target one measure of inflation - which included chinese goods so rates wre higher than needed. Isn't it the fault of who set the target than those who met it?

Though not sure how they are letting inflation reach 4.6% and predicted to go over 5% when should not be above 3%.

I would like to see them target other things as well. money supply. asset (including house) prices.

[AtW]

The BoE may be 100% sure

They are not even 10% sure because banks loaded themselves up with highly risky loans and leveraged obligations. The whole board of BoE should be fired for negligence - they used low rates to stimulate house bubble, now this is coming back with a vengeance. Greenspan and others should be giving interviews from max security federal prison, not anywhere else.

You gotto give Islam some credit (phun intended) here - interest rate credit limiting was certainly wise idea, this should have been one of the 10 commendments.

[tim123]

http://www.telegraph.co.uk/money/mai...cnshort119.xml

What a joke. If the authorities were so sure about the strength of the financial institutions then why is the Bank of England not happy to take virtually unlimited bank debt obligations in exchange for funding?

Because the man in the street can be persuaded to see it that way.

The BoE may be 100% sure (assume for now that this IS possible) that a particular institution is creditworthy and provide the guarentee.

But if rumours start to go around that the bank is in trouble (when it isn't) and the man in the street takes all their money out, the BoE will have to pony up the guarentee for a bank that need never have gone under.

tim

[AtW]

"fourhtly" isn't, but "fourthly" is.

I like English language but I think anything related to numbers is way wrong in it - better than Roman numbers though

[OwlHoot]

.. Finally (I'd add more but could not remember if fourhtly is a proper word) ..

"fourhtly" isn't, but "fourthly" is.

[AtW]

Lucky you thinking 50k is a joke - sounds like another crushed asian on this board.

It's a joke to offer £50k for 30-40% of the company. I'd say Dragons make loan sharks look like nice people.