More on England's intervention: The BoE and U.K. Exchequer look to "inject confidence" into the...

This news story has 20 comments:

Register or Login to rate comments »

montanamark Comments (1359)
 
hilarious - "cheap credit" will "inject confidence?"
14 Jun 2012, 04:07 PM Reply Like

montanamark Comments (1359)
 
sounds like panic to me - hey you need some monopoly $ for the weekend
14 Jun 2012, 04:08 PM Reply Like

winningtrader Comments (2253)
 
It should've been ''inject credit'' to grow ''cheap confidence''.
14 Jun 2012, 05:51 PM Reply Like

untrusting investor Comments (9879)
 
LOL, no sure why they don't just cut to the chase and start printing and giving money away to say the bottom 80% of income earners.

Hey they could even impose an 80% tax on the give away money and improve the government tax revenue at the same time.
14 Jun 2012, 06:34 PM Reply Like

WMARKW Comments (8358)
 
Yep.....that's what the "real economy" needs - more cheap credit. I think they would be better off with higher disposable incomes.
14 Jun 2012, 04:10 PM Reply Like

Hendershott Comments (1055)
 
You mean higher wages? Guy makes $15/hr welding castings for CAT (brother in law), $31K a year. Not a lot in taxes at that wage. In fact, not a lot of anything for a family of five at that wage. So how would you propose he gets more disposable income?
14 Jun 2012, 05:09 PM Reply Like

jhooper Comments (4659)
 
If you removed 90% of gov price blind regulations that are attempting to regulate voluntary transactions for better outcomes, the cost of these counter productive regulations (a tax) would disappear. The cost of production would drop dramatically, and people would start paying less and less for their everyday consumables. In such an environment, competition is fierce, thus wages tend to hold their ground because the demand for labor stays strong. So the wages stay relatively flat in nominal terms, but the effectively go up by 20% to 25% every year because the cost of what they consume keeps dropping. That's how you do it. You lower the taxes they pay via price blind, counter productive gov regulations that they don't see, and you effectively put more disposable income in their hands.
14 Jun 2012, 05:26 PM Reply Like

WMARKW Comments (8358)
 
I can't tell the answer in any specific situation because there are too many variables. I have a daughter that's twenty-eight. She works a couple days a week at a bar and makes $400 - $500. Easy cash. No future. I haven't been able to "guide" her yet. How do you guide a $15.00 per hour welder? The fundamental is all about self improvement, all about family improvement.
- What does he do with spare time
- Do they have a garden
- Are the kids working
- Does he have a plan to "change" anything
- What is mom doing
- What's happening to improve education
- What kind of second jobs
- What kind of earn from home opportunities (I have a friend that raises Golden Retreivers and makes about $6,000 a year doing.) The whole family gets involved. They also raise raspberries and blackberries. They make several thousand a year doing that.
- I've see shows on coupining. I've shopped myself and know enough about prices to know when there's a good deal and when not. I can tell you examples of times when you can find prices on the same product that are: local grocery store on sale = $1.29; Walmart not on sale $2.69; Walgreens not on sale $4.29. So how does one shop?

I could go on and on. While there are certainly instances where it's hard for one to climb up....there are lots of opportunities. That being said, I have also see a generation sacrifice with nothing for the sake of a better life for a succeeding generation.

God bless all those who are trying and all those who are not able for one reason or another.
14 Jun 2012, 05:26 PM Reply Like

torahislife Comments (400)
 
Brilliant plan. Households and businesses are paying down debt at a record rate.
14 Jun 2012, 04:23 PM Reply Like

sr1977 Comments (318)
 
All fractional reserve currency is based on debt - no new debt, no new money = deflation.
14 Jun 2012, 04:32 PM Reply Like

WMARKW Comments (8358)
 
Yes....but the question is "government" debt or "private debt"? Then the next question is if you need to create debt to create new money to handle rising population requirements, then why do you tax the poor buzzards after that. Why don't you just have no taxes and a 1.5% deficit each year?
14 Jun 2012, 04:48 PM Reply Like

sr1977 Comments (318)
 
Don't know - why don't we have no taxes and a 1.5% deficit each year?
14 Jun 2012, 05:18 PM Reply Like

Whitehawk Comments (2761)
 
Disinflation, not deflation. Prices will oscillate to a level more consistent with economic supply and demand, as opposed to the additive monetary dynamic.
14 Jun 2012, 05:29 PM Reply Like

jhooper Comments (4659)
 
Lady market needs to start objecting to anything the gov decides to inject in her.
14 Jun 2012, 05:00 PM Reply Like

Whitehawk Comments (2761)
 
The (monied) Brits have significant assets (including summer homes) in Spain and the greater Eurozone. The BoE has to appear to support the British commoners; this move has a double purpose, one that likely will have the same effect as a couple shots of heroin and snorts of cocaine. The Fed learned the same tricks from an "old pro."
14 Jun 2012, 05:39 PM Reply Like

winningtrader Comments (2253)
 
Let me tell you that the summer homes in Spain have crashed like there is no tomorrow. Spain has a real estate collapse that by the end of it will be much worse than the one in the US.
14 Jun 2012, 05:55 PM Reply Like

Whitehawk Comments (2761)
 
That's what happens when too many cheap loans are underwritten without proper controls or capital cushions for losses. What should be a learning experience ends up just being yet another co-dependent drug injection.
14 Jun 2012, 06:00 PM Reply Like

jhooper Comments (4659)
 
Or what happens when fiscal and monetary policy provide subsidies that prevent those poor underwriting standards from hurting the individual underwriters. So a poorly undwritten loan is bought by a GSE, and the reaction is, "huh, they bought that. Let me try again. Huh, they bought that too. I guess I can keep doing this, and since I am doing this, there are lots of people buying houses, so the price of houses goes up, so the GSE is willing to buy even more, and that leads me to underwrite and sell even more. This can probably go on forever."
14 Jun 2012, 06:20 PM Reply Like

TangoOscar Comments (381)
 
Government doesn't really have any effective solution to these problems. Sure the government is causing the problems but they only have limited weapons to fight back. Bond purchases/sales, tax raises/cuts, and government spending.

The problem with most of these government solutions is that none of them are working. Increasing government spending or cutting taxes provides less overall revenue for insane government debt levels, and bond purchases aren't doing much except messing with interest rates, punishing savers, creating bond bubbles, and artificially propping up the markets.

None of these governments can magically create jobs or increase pay, the economy doesn't work that way. They can increase spending to hire more government workers that they can't pay or they can cut taxes and hope that has a trickle down effect. Both of those "solutions" end up with even more government debt. Debt is what got us all into this mess and until it is addressed the fate of all first world countries will eventually be the same. America cannot spend or borrow it's way out of a 16 Trillion dollar debt. When the fat lady sings, and she eventually will, its going to get pretty ugly this time around.
14 Jun 2012, 11:22 PM Reply Like

Richard93 Comments (813)
 
Great stuff folks, this is what govts should have to read every day so the errors of judgment are dramatically reduced.
15 Jun 2012, 01:12 AM Reply Like