Quantitative easing

[piskieinboots]

and after a day in the field, planting trees and shrubs, at College - I don't care what they do - I'm off for a bath and a long G&T

[Hilary B]

The interest rate cut is actually counter productive. It has to be one of the reasons people who have money in banks and building societies are taking the money OUT and buying cheap repossessed properties instead. That means less money for banks to lend for house purchase, so prices go down even faster (and of course that cannot go on indefinitely).......
Better idea would be instead of repossessing and throwing people out (to be rehoused by the council) couldn't the lenders simply take the deeds and let the occupiers stay on as tenants? The benefits office would ensure the rent got paid (if it wasn't being paid any other way), and it would do away with the log-jam in the economy from unsaleable repossessed houses!

[piskieinboots]

....Better idea would be instead of repossessing and throwing people out (to be rehoused by the council) couldn't the lenders simply take the deeds and let the occupiers stay on as tenants? ...!

Hilary B for Prime Minister!!!

[Hilary B]

It is one of those so simply ideas that you wonder what is wrong with it........ I can't think of a snag.

[piskieinboots]

I can't either, it is a sound idea - what are we missing?

[Hilary B]

I can't either, it is a sound idea - what are we missing?

No profit in it for politicians probably...... I can be VERY cynical about politicians.....

[Snadger]

I first heard this phrase on the Radio this morning, and thought it sounded like a powerful laxative.

For quantative easing I've been known to eat rhubarb or prunes!

[HayleyB]

I reckon shares in wheelbarrow manufacturers are gonna rise steeply. Maybe they'll start printing £1000 notes to ease the weight in our pockets

[bazzaboy]

Yes, the numbers that are being bandied about are pretty meaningless, if you look up “billion” and “trillion” in Wiki they don’t have fixed meanings (e.g. a trillion can be 1,000,000,000,000 or 1,000,000,000,000,000,000). It doesn’t matter much either way because the real purpose behind “quantitative easing” is to reduce the value of the currency (and thereby “ease” debt). Particularly bad news for savers and anyone on a fixed income.... Because of giving out unfathomable amounts to save banks and effectively leaving the country (and the nation's children) in hock, the government now has an interest in creating inflation because it will reduce the national debt making it easier to repay (if you borrow a tenner but by the time you repay it’s only worth 10p it’s easier to repay! ).
I’m not an economist or mathematician but even the figures bandied around on the news suggest that today’s £75bn “quantitative easing” will increase inflation (lessen government debt) over the next 3 months by approximately 2.5%. And this is only the first time, they’ll do it again and again….
Many bankers, and increasingly some national politicians, are modern versions of Al Capone… Rather than retired off (or given knighthoods...) perhaps they should be in jail?
b

[Capsid]

It is one of those so simply ideas that you wonder what is wrong with it........ I can't think of a snag.

The mortgage lender would want the same monthly payment for rent as was received for the mortgage to ensure the debt gets paid in a suitable timeframe so that a decent return is made. That monthly payment was clearly unaffordable to the borrowers.

[kirsty b]

It is one of those so simply ideas that you wonder what is wrong with it........ I can't think of a snag.

Cos its TOO sensible.

[bubblewrap]

It won't get as bad as this.......................Will it?
Zimbabwe's inflation rate surges to 231,000,000% | World news | guardian.co.uk

[Hilary B]

The mortgage lender would want the same monthly payment for rent as was received for the mortgage to ensure the debt gets paid in a suitable timeframe so that a decent return is made. That monthly payment was clearly unaffordable to the borrowers.

Yep (well nearly as much), BUT if the family are genuinely unable to afford it, benefits pay rent, they don't pay mortgage. It is still a cost to the taxpayer, but IMO likely to be a significantly lower cost than how things are at present

[piskieinboots]

So, here we go then....
Bank to use 'newly created' money

[Hilary B]

I've had another thought about this one. It is SURE to cause inflation. Maybe that is the idea, inflation in 'ordinary' things to catch up to the inflation in house prices.
I don't believe it will work, or not without causing some serious misery in the meantime, but maybe the ....... illegitimi .... in control think that is worth it, after all, it probably won't be THEM in the most serious trouble!