Stock markets soar...

[Osem]

Equity markets in Asia, the US and Europe have been buoyed by central bank attempts to revive economic growth by pumping cash into the financial system

http://www.bbc.co.uk/news/business-21680542

I'm no expert but it seems to me that there's no real confidence behind much of this growth, it's a case of hope. With returns in many other investment sectors and on savings so poor, stockmarkets are almost bound to go up.

My concern here is that the market is so distorted right now that savers etc. are diving into investments out of desperation and we run a real risk of yet another bubble inflating with a very painful bust to follow.

Originally Posted by Osem

http://www.bbc.co.uk/news/business-21680542

I'm no expert but it seems to me that there's no real confidence behind much of this growth, it's a case of hope. With returns in many other investment sectors and on savings so poor, stockmarkets are almost bound to go up.

My concern here is that the market is so distorted right now that savers etc. are diving into investments out of desperation and we run a real risk of yet another bubble inflating with a very painful bust to follow.

There is sufficient confidence for people to believe they'll make money. It may be hope but it's also indicative of a degree of confidence that their hope is justified.

[MovedGoalPosts]

Only a couple of weeks ago we were discussing how Quantitave Easing (printing money) to "pump cash into the system", had suddenly caught up with the UK and how as a result the pound was being devalued against the Dollar, Euro, etc.

It all seems like a silly game to me that nobody really understands what the rules are.

Well looking at the sold signs springing up all around this borough I'm wondering if we are all being a bit pessimistic..

[Osem]

Originally Posted by Damien

There is sufficient confidence for people to believe they'll make money. It may be hope but it's also indicative of a degree of confidence that their hope is justified.

There's desperation to get a return and that's very different to confidence. There's no real confidence underlying this stock market 'success', it's being driven by the pursuit of returns in the absence of other options.

Originally Posted by Osem

http://www.bbc.co.uk/news/business-21680542

I'm no expert but it seems to me that there's no real confidence behind much of this growth, it's a case of hope. With returns in many other investment sectors and on savings so poor, stockmarkets are almost bound to go up.

My concern here is that the market is so distorted right now that savers etc. are diving into investments out of desperation and we run a real risk of yet another bubble inflating with a very painful bust to follow.

Like you said, you're CLEARLY not an expert.

[NitroNutter]

I believe there may be a saying which refers to fools and money becoming easily separated. Savings may not be attracting a good return at the moment but they are at least safe from the considerable risk present whilst markets take their time to stabilize from the false boom. You can also be sure if your desperate for a bigger return there's plenty out there more desperate than you to benefit from your losses.

Lets hope all those sold signs are not a result of a premature leap into more irresponsible lending/borrowing. Remember also any temporary/deferred mortgage relief governments are giving now will cost later and is clearly indicative of how the housing market is still grossly over valued. This certainly requires serious and painful consideration as once you have signed its too late.

Interestingly one of the strongest stock market performers over the last 4 years has been Virgin Media. On 2nd March 2009 they were $4.11 and today sit at over $47.

[NitroNutter]

Originally Posted by Top banana

Interestingly one of the strongest stock market performers over the last 4 years has been Virgin Media. On 2nd March 2009 they were $4.11 and today sit at over $47.

Hardly surprising, times of economic hardship necessity providers will generally but not always do well and Virgin Media has a unique monopoly on cable services in the UK and for some reason is not being forced to wholesale any of its monopoly unlike its main contender BT being forced to wholesale both telephone and broadband. maybe that's something that will change in the future but as I see it Virgin Media has held a countrywide monopoly on cable for far to long, just as sky has been allowed to retain a monopoly on satellite for no good reason.

Originally Posted by NitroNutter

Hardly surprising, times of economic hardship necessity providers will generally but not always do well and Virgin Media has a unique monopoly on cable services in the UK and for some reason is not being forced to wholesale any of its monopoly unlike its main contender BT being forced to wholesale both telephone and broadband. maybe that's something that will change in the future but as I see it Virgin Media has held a countrywide monopoly on cable for far to long, just as sky has been allowed to retain a monopoly on satellite for no good reason.

I thinks its because VM's network was privately funded whereas BT's was state funded?

[mertle]

not suprising its false economy.

Markets boomed due to all the QE. Seems that all banks done invest it in bad investments.

Reading article today this has more sense. There bit off satire about the building a portal to moon but it jibe how the establishment got no clues.

http://www.guardian.co.uk/commentisf...ld-bridge-moon

Turner right in this article instead pumping the stocks the real problem is lack liquidity.

Turner is focusing on what is now a classic of British establishment snobbery. Giving money to ordinary people to spend is considered by the Treasury, the Bank of England and Westminster to be immoral. (When they did it in Sweden it led to a surge in employment.) Yet it is just fine to give similar sums to "respectable" bankers, pension fund managers, consultants, contractors.

No money going into economy but there seems retoric reason for way country been put on life support. We just waisted our QE pumping the stocks. It was never reason why businesses was not investing lack funds. It was nothing out there to prove them they need to invest. Infact would like to see more pragmatic approach these businesses like increase wages. They wont they just look at there own business they dont care joe on minimum wage spends at beta down the road. That was the ultimate failure of coalition understanding of private industry thinking. Otherwise they thought they had some sort of agreement from captians of industry they met.

We could have funded building Power plants to give us less reliance on outsiders electricity supplies.

At some point coalition going to have use QE to stimulate the economy. That via infrastructure and possibly give it to people to spend. Osbourne and cameron got themselves into mess and more interested in there image than what to do.