Community Views : What’s on the boards today….15th Dec 2010

15th December 2010

The Daily Telegraph

"Mortgage lending will drop to its lowest level for 30 years as the banks struggle to pay back government bail-outs, it is predicted today."

gandalf thinks: "Blame the evil of B2L, low interest rates and low CGtax. All in support of the UK House Price Ponzi scheme. If there is anything you shold be protesting about if yr under 38yrs old (avg age for a mortgage) it should be housing. You just dont understand or know how yr being screwed and manipulated over housing."

The Guardian

"Spain threatened with credit rating downgrade. Both Spain and Belgium are perceived as vulnerable should the eurozone crisis escalate beyond Greece and Ireland"

nicolamai says: "How about downgrading Moody's and all the other financial spin doctors who have only produced neoliberal disasters to the advantage of their sector and their class in the last 5 years?"

Peston is also writing about this on the BBC:

Averagejoe writes: "The third domino to fall will be Spain then. The only question remains how long before the whole debt based monetary system collapses. Of course there will be the pointless IMF EU bail out, but the creditability of that solution is beginning to wane. I see Greece is going to fail to pay back its loan, what a surprise. Taking a loan on to pay off an existing loan; you couldn't make it up. The defaults are going to happen eventually, but how much default does it take to pull the banks down, due to the interconnected nature of the debt, is anyones guess. Maybe we need Portugal as well. We shall wait and see."

According to the Telegraph the US are also set to have their credit rating downgraded too:

"US will lose AAA credit rating, says M&G's Jim Leaviss. A leading fund manager has warned that the world's largest economy will be downgraded within two years because of its high levels of debt."

waramess writes: "Rating sovereign credits is becoming a bit like judging which is the best looking dog turd on the pavement these days"

 This Is Money

"Will inflation change the Bank's mind on rates?"

John says: "This is a deliberate attempt by the government to erode state debt (AKA stealing from the populace). Don't be fooled by anything they say! Get your money out of the bank now!"

The Telegraph is discussing Inflation as well:

"The phoney inflation war is ending, prepare for the real struggle. There aren't too many things growing in the UK, but inflation is certainly one of them."

stephenmarchant comments: "'Cost push' inflation is being imposed through a deliberate policy of currency debauchment and taxes. Meanwhile the BoE are supplying cheap liquidity to the banking sector to maintain below inflation interest rates. If they print any more funny money – they will find an excuse – we risk this stagflation turning into hyperstagflation. Many of us have already diversified out of savings into other investments to maintain the value of our hard earned savings. If more people do that then the banks will need huge amounts of liquidity from the BoE and the Govt will have to start the 'printing presses' or pay much higher interest on the ever mounting debt."

The Wall Street Journal

"The euro-zone economy looks set to achieve a healthy fourth quarter, with an ongoing strong performance in the core member states expected to limit the likely poorer outcome from the smaller, peripheral economies."

JOHN SMITH says: "Ahh the smell of bull manure in the morning. Look doctor the patient is breathing normally, I think the cancer is gone."

Reuters

The year in 60 seconds 

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