2nd November 2010
"Britain is in danger of creating a generation of "zombie households" that plunge the economy into a Japan-style lost decade unless policymakers take radical action to fix the banking system properly, a leading economic think tank has warned."
Kaitain comments: "I spend three years telling a slew of buffoons that the housing market is going to crash, and being laughed at for my trouble. It crashes. Now I'm being asked to pay the mortgages of said buffoons. I suppose I can pride myself on not being a moron. I imagine that the dumb have been subsidized by the non-dumb since the dawn of time."
"US Federal Reserve's latest bubble threatens mayhem . The prospect of more quantitative easing (QE) is driving government bond yields to levels that price in a depression."
moraymint says: "Good job I'm reading George Soros's recommended book of the month, "When Money Dies: The Nightmare of the Weimar Hyper-Inflation" by Adam Fergusson. History about to repeat itself here and there, methinks?"
"QE2 risks currency wars and the end of dollar hegemon y. As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar."
savodj thinks: "Currency is not the real problem – the real problem is that our Anglo-Saxon area does not produce anything competitive enough to sell. We produce only arms, which are paid from the budget, or various goods which are also paid by the governments. Our politicians are morons who talk only about the cuts."
Aelfrith says: "As a member of the CIPD I would like to know when they became so expert on the UK economy? Also why are they spending my membership fees on political propaganda?"
slowfood comments: "Rebalancing from Financial services to Manufacturing ? Then why are financial services zero VAT rated and manufacturing the full whack! Rebalancing my A***!"
"A currency war has no winners. For the global economy to revive, countries need to co-operate rather than devalue their currencies."
bill40 comments: "The UK and the US simply refuse to face the facts. Both countries insist on trying to rebuild a system that failed. Both countries have debts they will never pay off. The only hope is to inflate away the value of the debt hence QE. This rebuilds bank balance sheets while the public get robbed blind. No change there then. It profoundly depresses me to see so little original thinking. I am still open to ffers btw, £10 says that QE in the US and UK will equal the value of the toxic debt on the books. Anyone who thinks QE is not a bank bail out, by another name, is deluded. I don't think there is a long term way out, not one."