Creating money won't hurt II

[DimPrawn]

Unless your wealth or earnings are in £.

http://news.bbc.co.uk/1/hi/business/7932799.stm

The pound has sunk back below $1.40 to a six-week low, as confidence in the UK economy took yet another knock following falls in bank shares.

The pound was down almost three cents at $1.3778. Sterling touched its lowest levels in 24 years in mid-January, nearing $1.35.

UK financial shares fell in Monday trading after the government increased its stake in Lloyds Banking Group.

Against the euro, the pound was down one-and-a-half cents at 1.098 euros.

"What's going on in UK shares at the moment is putting pressure on sterling," said Geraldine Concagh at AIB Group Treasury.

She added that the Bank of England's programme of quantitative easing will put further downward pressure on sterling.

[PM-Junkie]

...yes, because the markets completely missed the fact that QE was announced on Thursday. I guess everyone who trades the money markets was asleep on Thursday and Friday, and only noticed today, and that's why the pound has dropped.

I spy someone with an agenda.

The fall in sterling today is almost entirely down to the fact that the banks are screwed. Very little to do with QE.

[DimPrawn]

Are you suggesting the BBC are full of tulip?

[PM-Junkie]

The BBC having an agenda?

I don't know how I could have thought such a thing. I do most humbly apologise. I shall retire to the naughty step as penance....

[swamp]

Are you suggesting the BBC are full of tulip?

No. The BBC are full of money.

[rootsnall]

...The fall in sterling today is almost entirely down to the fact that the banks are screwed. Very little to do with QE.

Reading the weekend's press and today's FT in particular we are all screwed. The honest pundits are now saying they haven't a clue how this is going to pan out, other than it won't be pretty.

It didn't stop the housing experts spotting green shoots of recovery at the same time as the world economy is falling into a massive hole

[Bagpuss]

The pound is down, but not as much as when interest rates were higher ans QE hadn't been done. So all in all, the markets are happy with QE

[d000hg]

The pound is down, but not as much as when interest rates were higher ans QE hadn't been done. So all in all, the markets are happy with QE

Yeah, we've had an interest rate drop AND QE in the same week and it's not as bad as it was 6 weeks ago.

A "6-week low" is hardly much to write home about.

[Cyberman]

QE and the interest rate drop are seen as positive events because they should hopefully help to hasten economic recovery. Thus the pound will not crash.

[Gonzo]

...yes, because the markets completely missed the fact that QE was announced on Thursday.

Er, it can hardly have come as a surprise to anyone on Thursday. Even we were talking about it back in December linky (SFW) so I don't think there would be any reaction now.

We just wait and see how it pans out. I for one am not very hopeful.