Q E Explained

Published on 01/05/2012

Here is an entertaining video that helps explain what Quantitative Easing is, and who in general benefits from it.





The UK Economy is Stuck

Published on 26/04/2012

March borrowing by the goverment hit £18B, higher than a year ago and took the annual deficit to a massive £126B. Growth has now been negative for 2 successive quarters and may mean we have QE3 to look forward. Whatever your views, the UK economy is stuck.

“Even a €1T Firewall Wouldn’t Be Enough”

On Friday, the Eurozone agreed to an additional €½T to contain the sovereign debt crisis; a fund created out of thin air with no assets or gold backing it up, except an obligation by the taxpayer to accept the liabilities.

The only problem is, in the words of the German journal Die Tageszeitung, even a €1T bailout is not enough; a sum so big, it would take 2,700 years to repay at the rate of €1M per day.

Markets expect Greek Default

Published on 29/03/2012

New Greek bonds are priced at 22 cents in the $ or in other words, the market is expecting another credit event. To protect against default, insurance was last quoted on March 9, when a buyer of protection would have had to pay $7.8m up front to insure $10m of debt against default ie the market was predicting a near certain default on new Greek bonds resulting in large capital losses for investors.

What are you doing to protect your wealth?29