Comments on: Quantitative easing a last resort Wed, 16 Nov 2016 01:37:11 +0000 hourly 1 By: Jonesy Fri, 10 Apr 2009 22:33:31 +0000 Yes there are signs that Banks are starting to lend again, I recently read that HSBC is offering loans with as little as 10% deposit with a rate just short of 5% to their higher net worth customers eg 50k already on deposit or those pay for additional services.
The advert really sums up that the same lunacy still prevails in the banking world, most properties will be worth at least 10% LESS in 6months, more negitive equity and so much for the lower base rate helping home buyers with the bank making 4 to 4.5% margin. + with the margin they are making on the difference of the deposited money to the loan money why take up the loan anyway ??
Previous down turns have been long and protracted, the reckless ways that are being employed to financially stimulate will only come back to haunt us.
We have the very same people that caused the problems now adding to the problems, we are only borrowing to encourage more borrowing….. more tears…..

By: Haroon Abbasi Fri, 10 Apr 2009 17:03:19 +0000 “Our models suggest that if the Bank Rate could fall below zero, interest rates “should” be -4 percent.”

I’m sorry is this man an economist or this some sort of late April fool joke? Inflation is way above target and these court jesters-come-economists are suggesting we should have negative interest rates.

The real reason QE isn’t working is because it is a daft policy. The BoE can’t be both a buyer and seller and gilts at the same time, it is totally irrational. Western capitalism is finished and such “solutions” just show how bereft of ideas western institutions really are.