I'm confused...

[Technically Fundamental]

"But where is the money coming from? Is it digital/fake money or hard currency?"

Aaron, are you referring to quantitative easing?

So thats what that term means lol.

Create vast amounts of money to combat deflation so that Mervyn and his counterparts look good. Then sweep all the trouble under the carpet and flush the evidence (money) down the toilet.

Wonder if they're finding a way to introduce the billions in stolen iraqi oil money into the economy?

 

[everyonerich]

money coming from.... " ".... since 1971 when gold stopped as measurement to money. u see the gap there?

 

[Technically Fundamental]

Interesting thread... I'm not really clued up on economics but it sounds crazy that they can just tap into future earnings like that? Surely thats creating more poverty for the future!? Shame they can't travel back in time and correct all their mistakes! Did anyone see that video clip of Danial Hannan slating Gordon Brown? He said that basically the UK is in negative equity with each child born owing £20k, and that servicing the interest on that debt will cost more than educating the child. It really is a dyer situation we are in and it is all down to greed. Its just a crying shame that those most greedy have walked away very wealthy and those who had nothing to do with it will be left to pay the price.

Sam.

"Let them eat crack"

 

[MrGecko]

The thing with marking to Model is that it might not have the effects everyone is hoping for... it will increase the balance sheets of the banks, in theory giving them more money to lend out - but banks don't lend from their own pockets - they lend from their deposits.

On paper, it puts banks in a stronger position, but I don't expect to see all the freed up capital from marking to Model float about in the credit markets overnight.

 

[Technically Fundamental]

So they ask Murdoch to print stories saying how The Mr Brown Extrodinaire and Prophet Obama have steered banks back towards humungous profits. This builds consumer confidence. Then adverts adverts adverts. ISAs ISAs ISAs for the public. Corporate tax relief for interest recieved on deposits. Deposits =10+:1 lending. Cycle continues labour and democrats do what tories and republicans could not. OR it all fails and the tories take power. I'm sure Obama is a Repulican at heart also.