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itsbetterupnorth

Listed below are comments made by itsbetterupnorth between Sunday, 11th January 2009 and Friday, 1st May 2009.

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Cleaning up bankers' mess 12:48pm on 01 May 2009 Yes the bankers have made a mess but this has brought about a once in a lifetime opportunity to make money on the stock market Barclay's shares are up 500% from the low point in February all other bank shares have been drastically over sold. The lessons are you must look after yourself and not rely on so called experts and especially the over excitable media.
Will QE work? 5:43pm on 11 Mar 2009 This post by Robert i feel has exposed his shallow understanding of money supply.
The BOE continually issues new money as do commercial banks in the form of debt. New money is created daily and always has been since banking began in the middle ages.
QE may be a far better way to control the money supply than the blunt instrument of interest rates.
Rock revival 10:45am on 23 Feb 2009 This is good news for the economy and in particular the housing market on which it has been proven during the last 12 months how dependent we all are that property assets remain stable.
There are already clear signs in my region that the property market is very near the bottom with estate agents reporting far greatly activity than in Feb 2008.
90% mortgages may not be as risky as Robert suggests and in fact are vital if first time buyers have any chance of a home purchase which is still by far the safest long term investment a young person can make.
Obama biffs bonuses 11:30am on 05 Feb 2009 235
Of course it is good news that house prices have stabilized.
This banking crisis will only improve when asset prices improve.
And yes I believe the green shoots of recovery are appearing. The FTSE is I believe past the bottom, house prices may fall slightly but are very close to the bottom.
All the criteria are in place for a recovery low oil prices, low interest rates and a large fiscal stimulus the only ingredient still needed for a quick recovery is confidence.
As the spring arrives confidence will grow as people begin to feel things will improve.
The long and short of banks 1:20pm on 23 Jan 2009 Why do shareholders lend shares to short sellers?
It is because they believe the share price will fall.
By lending them to a short seller for a commission they can in part protect themselves from the expected fall.
Most shareholders are in it for the long term they still end up with the same holding but make commission on lending them to shorters.
The value of the share is only relevant the day the share is bought or sold.
In effect by lending shares to shorters institutions or private stock holders can earn money from they long term holdings taking advantage of short term price movements.
The long and short of banks 10:45am on 23 Jan 2009 Bank shares will only recover when asset values stabilize.
This may not be too far away. Local estate agents tell me that they are much busier than last January on enquiries and completions. In part this is down too much cheaper money and much more realistic prices being accepted by sellers.
Further falls in base rate will encourage these green shoots!
Maybe the time is right to buy bank shares.
Collapse of confidence in banks 3:28pm on 19 Jan 2009 RP Was quite correct to state this morning this recent attempt to inject capital into the banking system was about saving the wider economy and not the banks.
We are all in danger of exasperating this crisis for that is what we are in just as great as any in living memory bar possible invasion in 1940.
It appalls me that the majority of contributors on here still seem to think it is clever to make political points and promote their own self interest
We all have too pull together if we are to avoid a 1930's slump, it is worth remembering that unemployment peaked in the US at 30%
It is surely the duty of a government to avoid this at almost any cost.
If not, many taxpayers who throw their hands up in horror at liquidity currently being injected into the economy will find themselves out of work for years, it took 10 years and a world war to rebuild from the 30's slump is that what we really want.
Hampton for RBS 4:48pm on 16 Jan 2009 Whats going on at Barclays The share price is down 20% or so in the last hour.
The cost of bringing banks home 8:21pm on 14 Jan 2009 I am sick to death of reading and hearing what a waste of money the reduction in VAT is,what utter nonsense.
If that is the case why not raise it to 25% or even 30% I can remember the outrage when VAT was raised from 8% to 12% Any reduction in tax is to be welcomed in times of recession.
The present Tory leadership have shown themselves to be complete economic illiterates.
It is amazing that even the BBC now seem to follow this ridiculous assumption that tax cuts and interest rate cuts are counter productive in a recession.
As for government borrowing when the private sector is either unable to borrow or unwilling to borrow then the potential for government borrowing is almost unlimited the overall borrowing in the country is very likely to be less due to the drastic reduction in private sector borrowing.
There is a widespread misconception that banks are borrowing money from the government at 12% and then being forced to lend this same money at a much lower figure say 3%
The money at 12% was to re capitalise the banks this capital can then be used to maintain the banks capital reserves,due to fractional reserve banking the bank can then in fact lend for every £1111.12 raised in this way up £100,000 thereby only increasing the % rate on the whole by a tiny fraction.
Nationalising Tories 8:47pm on 11 Jan 2009 #400
The economic cycle depends entirely on the psychology prevalent at the time ie peoples perception if the overall economic situation is likely to get better or worse.
This current downturn has been brought about by the realisation of banks that the business model they all pursued was not sustainable. 75% of profit where being created not in the real economy but by trading in every conceivable type of financial paper.
95% of all money has been created as debt by banks I am afraid the only way we can maintain the lifestyles we all wish for is to carry on with the current system of creating money.
If we wish to change this then radical thinking is required.
I urge you to watch the video link below to understand how money is created and destroyed every day.

video.google.com/videoplay?docid=-9050474362583451279

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