Reply to: Bank of England's QE2 may reach £500bn, economists warn

[EternalOptimist]

What would you suggest for shares ?

I dont know, ask SasGuru or someone. I treat these things like a household budget and I leave all the airy fairy concepts out of it.

It may be simplistic, but it works for me. maybe I have been lucky

[DimPrawn]

What would you suggest for shares ?

Sell them whilst the sugar rush of QE is still in effect.

Then buy land and property, with all the cheap debt available.

[Troll]

It was clear when Brown was over pumping the public sector,welfare and creating a wages and pensions time bomb that the only way out was either 20 pc growth for ever, or a large dose of inflation.
The strategy then, and now, is to be debt free and to keep your savings low. Dont rely on a pension and spend the rest. Keep your car new, good holidays every year and invest in the family.
all imho of course

What would you suggest for shares ?

[EternalOptimist]

It was clear when Brown was over pumping the public sector,welfare and creating a wages and pensions time bomb that the only way out was either 20 pc growth for ever, or a large dose of inflation.
The strategy then, and now, is to be debt free and to keep your savings low. Dont rely on a pension and spend the rest. Keep your car new, good holidays every year and invest in the family.

all imho of course

[Troll]

I think this goes to show that Labour were never in charge and the ConDems are not in charge. They are all puppets of banks and the global elite.

We talking about Bilderberg or Society of the Elect?

[sasguru]

They are all puppets of banks and the global elite.

Indeed they are. Mwahaha ha ha ha ha

[DimPrawn]

I wonder what Maggie would have done. We've essentially still got New Labour in power, implementing Gordon Brown's ideas, eventually.

I think this goes to show that Labour were never in charge and the ConDems are not in charge. They are all puppets of banks and the global elite.

[TimberWolf]

That's the intention. Inflate away debt by devaluing sterling.

QE is not for the benefit of the economy in a direct way. It's to try to avert another banking collapse due to all the exposure to the Eurozone and USA problems, so the government don't need to rescue the banks again.

Those further down the food chain will also benefit if their bank deposits remain intact and banks eventually are able to lend more out of the system.

So the bottom line is we the tax payer and consumer are still bailing out banks and governments, it's just done behind smoke and mirrors so people don't realise they're still giving their money to the banks as they did in the last rescue.

I wonder what Maggie would have done. We've essentially still got New Labour in power, implementing Gordon Brown's ideas, eventually.

[PAH]

As things stand this money goes into propping up house prices and rents and creates inflating hitting the poor without assets. And probably makes bankers rich too.

That's the intention. Inflate away debt by devaluing sterling.

QE is not for the benefit of the economy in a direct way. It's to try to avert another banking collapse due to all the exposure to the Eurozone and USA problems, so the government don't need to rescue the banks again.

Those further down the food chain will also benefit if their bank deposits remain intact and banks eventually are able to lend more out of the system.

So the bottom line is we the tax payer and consumer are still bailing out banks and governments, it's just done behind smoke and mirrors so people don't realise they're still giving their money to the banks as they did in the last rescue.

[TimberWolf]

The BofE is looking at the bigger picture - not pumping money in would mean the economy would freeze. True people on fixed incomes are not going to do to well, but if we go into a full depression things would be worse for eveyrone.

Why not give everyone £1000 quid then? (I think Germany did this after the war).

As things stand this money goes into propping up house prices and rents and creates inflating hitting the poor without assets. And probably makes bankers rich too.

[geoff from contracta IOM]

It shafts those with savings and little if any debt.

Yet there were only around a dozen protesting about 'save our savings and pensions' on the news, so that proves there's general apathy and no resistance to these measures.

QE causes the price of borrowing to drop, so the logical conclusion is to fill your boots with cheap/free credit. You may even get lucky with defaults and debt jubilees writing it off further down the line!

The tricky thing is deciding what to buy with all that cheap credit so when things go tits up you come out on top.

A plane ticket ?

[PAH]

I don't class myself as rich, but I am very well off in the sense that I own my own home outright and have a large income coming in.

What happens if they introduce significant property taxes (Greece have recently) and the economy crashes (by inflation making people spend less on non-essentials) so risk to work opportunities?

If your large income is passive then you may have less to worry about than those with big mortgages and a need to be earning £xxxxx per year.

[sasguru]

Because they don't own assets that hold their value; assets such as expensive paintings or a house. Perhaps the poor hold a small amount of cash or savings that will be inflated away. Their low wages are disproportionately affected by price inflation (wages arn't rising for the poor) or they may not have wages at all. They pay rent that will rise with inflation, benefits don't, etc.

Whereas the rich are hardly affected by these measures, as the Dim one says, the rich are in perma boom. Their houses are kept artificially high, rents are kept high, mortgages are kept low, and so on.

The BofE is looking at the bigger picture - not pumping money in would mean the economy would freeze. True people on fixed incomes are not going to do to well, but if we go into a full depression things would be worse for eveyrone.

[PAH]

P.S. Don't run away with the idea that any of us lot qualify as "rich".

Not even Sas in his private delusion.

True. If you have to go to work (in any form) you ain't rich.

Could do with finding a hobby that pays the bills, then working ain't so bad.

[sasguru]

P.S. Don't run away with the idea that any of us lot qualify as "rich".

Not even Sas in his private delusion.

I don't class myself as rich, but I am very well off in the sense that I own my own home outright and have a large income coming in.