advertisement


ECB To Start Massive QE Program

The daftest bit of it is that the credits get divided in proportion to ECB capital shares, so Germany gets the biggest share at 26%. Given it has now reached budget balance/surplus, it doesn't need the scheme- there is plenty of cash floating around Germany and they aren't suddenly going to invest it in Italian or Spanish businesses. Nor are german consumers going to increase spending on Club Med products.

Another flash in the pan which might well end up burning the face of the guy pulling the trigger..
 
Rack Kit said:
That's a shame. I've got €200 I've not changed back to Sterling yet. Might as well hang to them until this QE eventually recovers the euro value. Or is this class as money laundering?
Click to expand...

Possibly a case of champagne money laundering.

TheDecameron said:
That'll ease my bill at Le Grand Véfour in two weeks.
Click to expand...

Foolishly I paid for my annual Summer months residency at The Grand in cash a couple of weeks ago.
 
Today the pound reached a seven-year high against the euro of €1.34. Book yer hols abroad now.
 
CliveGrace said:
Cut to the chase... Exchange rate effect please.... Can someone tell me will it be cheaper to buy things from Amazon in the EU? I don't care what happens to the eurozone I just want cheaper stuff than I can buy in the uk.
Click to expand...

Yes indeedy.
 
What I love about economists is that they can't predict anything, but they are very good at explaining why things happened after the event. A pointless degree.
 
avole said:
What I love about economists is that they can't predict anything, but they are very good at explaining why things happened after the event. A pointless degree.
Click to expand...

As on the quiz show you refer to, they often get it right, but usually provide the most obscure possible correct answer.
 
TheDecameron said:
Will I get a Devialet for less?
Click to expand...

I do good deal Comrade Dec for devilette; brighten up party £500 one night only.

a_b79eb026.jpg
 
avole said:
What I love about economists is that they can't predict anything, but they are very good at explaining why things happened after the event. A pointless degree.
Click to expand...

I feel that they often can make good predictions as to what will happen, but they can't predict WHEN it will happen.

It goes back to the concept of confidence / sentiment discussed earlier. People can remain confident for much longer than is warranted by the data, but then when it starts to change it's like an avalanche with a stampede for the exits.
 
Really? Strikes me they've never understood the boom and bust cycle, let alone how to prevent it.
 
avole said:
Really? Strikes me they've never understood the boom and bust cycle, let alone how to prevent it.
Click to expand...

It is pretty well understood the issue is more that it's very difficult to do anything about it given that the only blunt instruments are monetary and fiscal policy and the latter is largely abandoned for political/ideological reasons.

Keynesians have made lots of predictions during this financial crisis and been almost completely correct (the over estimation of the amount of deflation being the one obvious failing).
 
Old economies just mature and lose potential to grow. Saturation. How are there going to be 10 million more new jobs in Europe? Until Europe starts making things instead of importing them from China et al.
 
You must log in or register to reply here.


advertisement


Back
Top