"The cost of default - rioting, sieges and death"
The penny has dropped?
Then we must ask, who is responsible? Then they must be removed. Then we might address the question of those who watered down democracy to create this ghastly, avoidable situation. It might also be an idea to suggest positive solutions to how to recover from the wreckage of the futile arrogant ambitions fostered by the same people who have so carefully and covertly undermined the foundations of democracy over the last 40 years. So far, we have little more than money manipulation. The real problem is how to start up or recover our productivity. On this subject, most politians are silent and most people berating them, even in these posts, seem to be in equal denial.....Francois Hollande, France’s new socialist leader, and Mario Monti, his Italian counterpart, met in Rome to discuss ways to tackle the eurozone’s problems, to the sound of angry protests against spending cuts.
“The progress made, including in the governance of the eurozone, is not sufficient and we need to strengthen the weak part of the system,” Mr Monti said at a joint press conference after the talks.
“The Greek elections will take place in three days: I want to reaffirm the hope, shared with President Hollande, that Athens will remain in the eurozone and respect its engagements.” He and his French counterpart agree on the need for more pro-growth policies, in addition to spending cuts, the Italian prime minister added. Mr Hollande confirmed: “On growth, we share the same objective and have a broad agreement on the instruments to be used.”
Last time I looked, these two jokers were Presidents of France and PM of Italy respectively. Well if these two cant do a bit of 'action', I dont see why they should be asking anyone else to. And in case they dont know, the best thing to do is pay off a bit of your own debt and close down any banks under your jurisdiction that are trading insolvently.
7 comments:
It's also direct intervention, having seen £325bn of quantitative easing fail to produce recovery.
Banks should be pleased, having complained bitterly that markets have deserted them and steep liquidity rules have left them cash-strapped. It should help them rebuild profitability too – I can read next year's bonus row headlines from here.
The detail has yet to come, but £80bn must be new lending to households and businesses while £60bn could be used to refinance more expensive loans.
It's yet more debt, but the severity of the potential problem requires a pretty instant response. Will it work? Of course, like a dream. Assuming someone out there wants to borrow another £80bn in the midst of a global financial crisis
It's also direct intervention, having seen £325bn of quantitative easing fail to produce recovery.
Banks should be pleased, having complained bitterly that markets have deserted them and steep liquidity rules have left them cash-strapped. It should help them rebuild profitability too – I can read next year's bonus row headlines from here.
The detail has yet to come, but £80bn must be new lending to households and businesses while £60bn could be used to refinance more expensive loans.
It's yet more debt, but the severity of the potential problem requires a pretty instant response. Will it work? Of course, like a dream. Assuming someone out there wants to borrow another £80bn in the midst of a global financial crisis
What we need is Less lendng for the hyped up over valued UK housing. Tad payers money to make more young people rent slaves and unable to afford an affordable home. Use the money to Build new affordable homes..... ban B2L, implement Rent controls. Then people will be able to boorow on affordable homes and have money to spend on growth for the economy... This is just more debt on debt!
If those who have attempted to be prudent and target save for deposits may "hope to have the opportunity to gain from someone else's misfortune" then this is still far less than the mortgagors who don't need to "hope" but have actaully already gained from the misfortune of those savers/renters.
Sadly, checkmate, the response to give favour to those on the inside (existing mortgagors) over those on the outside (deposit targeting savers) is a bias that belongs to many.
(At a personal gain/loss level I am pretty neutral on this)
Edit:- I do also agree on the job mobility point - that is why I favour a working not distorted market.
Exactly. It's a zero-sum game surely, so it's beyond me why politicians should prioritise the wishes of one group over the other. Prices double or triple in fifteen years due to a bubble of cheap credit and now, as a nation, we're expected to keep that bubble inflated for the benefit of people who happen to own property but to everyone else's detriment. And what is the benefit? No one ever explains why expensive housing is a good thing, both for people who own property and for those who don't.
Debt and housing bubbles caused the financial crisis yet those who caused these conditions are endlessly protected by these morally reprehensible initiatives from our government and central bank. Unless the market is allowed to adjust it will ultimately become an election issue. Why would you vote for a political party whose policies are designed to prevent you ever owning a home of your own?
"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises
So total and utter catastophic collapse it is then.
LONDON—The U.K. on Thursday unveiled an extraordinary series of measures designed to insulate the British financial system and economy from the euro zone's deepening crisis.
Chancellor of the Exchequer George Osborne and Bank of England Gov. Mervyn King announced plans to flood banks with cheap funds in an attempt to jump-start lending to British households and businesses and to fend off potential financial problems at big U.K. lenders.
Enlarge Image
Close
Reuters
Britain's Chancellor of the Exchequer George Osborne (left), Lord Mayor Alderman David Wootton (center), and Mervyn King the Governor of the Bank of England before the Mansion House Banquet in the City of London.
.
The British programs resemble some of the emergency measures enacted by central banks in Europe and the U.S. earlier in the financial crisis. The British announcement on Thursday, at an annual black-tie dinner with bankers in central London, reflects leaders' intensifying concerns that Europe's crisis threatens to drag down the U.K. economy and financial system.
"These are very difficult economic times—as difficult perhaps as any our country or our continent has faced outside of war," Mr. Osborne said. "Together we can deploy new firepower to defend our economy from the crisis on our doorstep."
Post a Comment