Quote:
Originally Posted by nomadking
Everything is following on from this PMI thing. If that is false, eg as in 2012 when GDP shot up, then everything else is based on that falsehood.
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Well, there's that, there's things like this:
And various other indicators. The sum of that data pushed the BoE into acting to try and get stimulus into an economy that was already faltering somewhat.
The PMI is accurate far more often than not. Where it and GDP disagree it's usually GDP that is adjusted.
None of this is in any way unexpected, indeed the situation is somewhat more rosy than the apocalypse that we were told we would be in for. Still, whatever you need to tell yourself.
https://www.youtube.com/watch?v=StTqXEQ2l-Y
---------- Post added at 18:17 ---------- Previous post was at 18:14 ----------
Quote:
Originally Posted by nomadking
If you had shares in a company and everybody was saying if X happens then the share price would go down, what would you and everybody else do if X happened. You and everybody else would sell, which is what would drive the price down and not whether X happened or not. When people were gleefully saying that the value of Sterling would go down, the markets had little option but to sell Sterling, thereby driving the price down. It was where enough people are made to believe that something will either go up or down that makes it happen. A self-fulfilling prophecy. By predicting something, you make it happen.
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The pound dropped because interest rates dropped. It's pretty simple: interest rates dropped which lowered returns on a bunch of investments denominated in Sterling so people withdrew their money.
Nothing at all to do with perceptions, entirely factually based.