UK unemployment rate drops to 7.1%

[scooterscot]

Okay has this been done?

The government are blowing their trumpets and jeering at their success with the drop in unemployment. That's great news. But then you start peeling at the surface of those statistics,

Wait a minute. Is the increase in employment linked to our growing housing bubble Mk II? Shurly not. This is not a success story.






BBC News - UK unemployment rate drops to 7.1%

[KentPhilip]

I don't think there is a house price bubble.
They started off high, and they remain high.

[suityou01]

I don't think there is a house price bubble.
They started off high, and they remain high.

Tit.

[VectraMan]

It's down to God showing his approval of the legalisation of gay marriage.

[suityou01]

It's down to God showing his approval of the legalisation of gay marriage.

<wince>

[SpontaneousOrder]

I don't think there is a house price bubble.
They started off high, and they remain high.

When did they start high? The price of houses over the last 30 years have increased by at least double the increase in M2 money supply.

[Flashman]

So it would be better if unemployment went up?

[suityou01]

So it would be better if unemployment went up?

Not really. Once unemployment goes below 7% they stop QE and put the base rate up. Good for savers. Then hyper inflation and another bust cycle. Simples.

[SpontaneousOrder]

Isn't 7% the unemployment threshhold the BoE chairman is using to base interest rate increases against?

Reinflate housing bubble --> lower unemployment ---> rate increases ---> bubble burst ---
^_________________________________________________ __________________________|

[Flashman]

Not really. Once unemployment goes below 7% they stop QE and put the base rate up. Good for savers. Then hyper inflation and another bust cycle. Simples.

Ride that wave!