Central bank money printing and the mystery of soaring shares

'Why did nobody see it coming?", the Queen asked four years ago on a visit to the London School of Economics, a brilliantly faux naïve question that cruelly exposed the failings of modern economics.

Well, here's another in a similar vein she might like to ask when she next returns to matters financial. "How come the stock market is going up, when the economy keeps tanking?"

KlingonOffTheStarboardBow: Many DID see it coming, especially those involved in it. So your question, M'am, is indeed naive. "Why didn't anyone do anything to prevent it? would be a better question, to which the answer is: - Those creating the problem were doing too well out of it to give a toss. - The THREE THOUSAND people working for the FSA are presumably idiots - one has to ask what their point was - or is. Or did one or two raise doubts and then get told to keep their gobs shut? - Gordon Brown studied history at university and had not a clue about management, finance, economics or indeed much else. - His fawning acolytes, including the fairly odious Balls, did nothing either during thirteen years of binge, boom and humungous bust. This total failure  was a combination of not daring to stick their head over the parapet, being cowards (the same thing) and incompetence.

revolting: The groups of people paying the highest price are those who are least responsible for the crisis and many by nature the least likely to want to take handouts… This moral hazzard is immorality, writ large.

damicol: The one simple fact, which seems so evident to me but yet totally misses everyone else except for a certain group. An almost totally ignored group. Dumb effin lying politicians ignore them, dumb effin useless parasitic scum called snivel servants loot at them as a source of blood to suck up at will,  quoted companies almost despise them,  and cheat them and especially in current times  actively conspire to destroy them, Crony capitalist structures, those with deep tentacled involvement with corrupt deals  and too closely tied to either politicians  seek to keep them down and at heel by encouraging more an more regulations and burdens to control and emasculate them. And commentators think its beneath their dignity, and economists and the MSN and almost everyone who think of this group as unimportant, small ineffective and of no real consequence. Yes, I do mean SME's… You know, those several hundred thousand small businesses, most of whom DO NOT export to europe, the ones who get tied up and destroyed by the filthy unelected cretins in Brussels hanging their garbage idiotic regulations around UK businesses, The SME's that hire around 85 % of all people working in the UK , the ones that pay the rent on the high streets and hire shop workers and sales staff and back ofice and salemen and have small engineering shops and printing businesses and plumbers and electricians and  sometimes one staff or sometimes 10 staff or sometimes 50 or 100 or 500. But these SME's are sniffed at, they don't have shares listed on the exchanges, they don't have corrupt deals with government contracts and they don't have influence amongst the more corrupt snivel servants and politicians. But these are the precisely the ones that damaged the most in way the current policies impact the UK. These are exactly the same group that get slaughtered and hammered and hounded out of business in Europe as the cretinous retards inflict their pathetic socialism and semi Nazi ideologue on Europe. And few understand the workings of the SME's. Few understand them because they are ignored, no one writes about them, no one listens to what they need  and banks don't care and politicians think it is beneath their status to be seen hob nobbing with the minions and the little fish. But some of understand them very well and several hundred thousand owners of these businesses understand all to well the position they are in. For the ignorant the stupid the blind and the sheep and the corrupt and the disgusting herds of socialist parasites,  these are the only ones who matter in an economy if you want it to grow and prosper.  And now they are effectively on strike.  They are all moving into retrenchment mode,  battening the hatches,  they are not for sale,  they are not hiring, they let staff go and replace them with temps,  they are not interested in growth and they are not interested in investment. They have been raped and abused for far too long. They are now existing  in full danger alert to protect the capital and income of the owners as far and as safely as possible. They do not care, they see the money printing, they hear the howls  and screams coming from idiots who have zero knowledge or understanding of SME's  calling for more and cheaper loans for them, screaming at banks to lend, stealing taxpayers cash to waste on ridiculous schemes. and then they are confused and lost because no one wants their money. Half wits cannot even see that taking on borrowings at even negative rates will destroy capital and add risk to an SME, by increasing gearing and liabilities. They need higher interest rates to get a return in the bloody money they have instead of seeing destroyed by inflation. Not effin useless schemes that destroys more of what capital they are now conserving as hard as they can, Ignore SME's at your peril, keep piling filthy useless EU crap on then, keep the HMRC boot planted firmly on their necks. I understand them you see. Its why I can help them. Its why I offshore parts of them and for  so many of them whole departments and back offices set up in their very own offshore Bureaucracy haven which becomes their very own tax haven and their very own private island of security in the face of the onslaught from pig ignorant  tossers in the UK govt, snivel service and the corrupt lying criminals in the EU. Are you starting to understand it now too Jeremy. Its not rocket science when you get your hands dirty and look at where the real economy is instead listening to the high faluting bollox coming from chief execs of large caps and utterly ignorant economists and even more ignorant central bankers and politicians. manloloko7 at gee male

scorpion_derooftrouser: And meantime the mega corporations and multinationals are allowed to get away with breaking the most fundamental of rules - they are freely allowed to become cartels or oligopolies or monopolies. So of course they can increase their profits by squeezing out the remaining little guys. But not for much longer, because the money in the average Western household to pay their inflated prices for ever decreasing quality of goods and services is running out. So the light at the end of the tunnel really is an oncoming train - the real crash can't be far away now.

usathoughts: YOU ARE MY KIND OF MAN. Everything well said. As for Jeremy he should go to any school of economics, submits this paper, requesting a doctorate degree. Request is the wrong word, replace with Demand as he is now far above anything they have graduated  God! I love the way the English put things.  

alanllandrindodwells: damicol Not sure about your language but well said! SME's are ignored because they do not have the same expensive lobbying groups in London and Brussels, and are not integrated in the corrupt Crony Capitalist system.

damicol:  Whats wrong with my language… Incidentally I am a Yorkshireman  and  I really don't waste time on bloody useless diplomacy when I am directing comments at what I consider to be brain deadunderachieving air wasting plonkers with zero common sense and an inate ability to trash things, wreck things and in general f*ck up royally and then have  the ability to shrug their bloody shoulders and leave it  to someone else to clean the crap up. I have no time for them , wouldn't waste pee on them if their heads were on fire  and damned if I am going to waste time on bloody wasted diplomacy when I can say it the way I damned well see it. But yes you right, and they never will get integrated, because if they do then their is no one left to royally shove it and steal from

jimiweb: This Scotsman admires your style

alanllandrindodwells: damicol Did not know you were from Yorkshire. Language normal. Sorry.

guesswho: Too late Alan…You are Yorkshire-ist…

alanllandrindodwells: guesswho Nobody likes a smartarse!

guesswho: alan easy tiger…

alanllandrindodwells: guesswho Worked you out Have a nice day.

donk: Love the language dude - more of it please - we share a mutual hatred for civile servants and bloated government the whole disgusting lot of them. Actually the question really begs would we any better out of Europe without dealing with that issue as well ? I mean no point in exiting from the EU when we have a perfect replacement waiting - they would probably want more of themselves to continue the endless and colossal waste of taxpayers money.

jimmy1952:  Britain has never really been in the EEC because we don't have their currency, and British politicians ignore the rest of Europe when it suits them as in the illegal invasion of Iraq. Britain is sort of half in / half out, getting the worst of both worlds.

chaswarner: Top notch rant from the master. Damicol, like Shakespeare, needs tha full range of our language to express himself. If only our political class would listen .Vote UKIP.

endgame:  I only read a few words you wrote and then quit, as I'm not interested in reading foul language. That is whats wrong with your language.

damicol:  the recommends say otherwise… do you think I give a flying f*ck whether you read it or not

stephen porter: how much QE is going to sme's, not a lot. this government and the banks are only interested in preventing a housing crisis. the banks are to tied up in the mortgage market, so low interest rates are protecting their assets, and preventing a dangerous rise in defaults, and a second collapse of the banks. do you know whats killing my small business…late payments. the money isn't flowing in the real economy, its all up at the top, in the banks and the big businesses. i cant borrow, so i cant take on new work, because i haven't got the funds. I've already sold my house cleared my debts, and moved into rented, i was hoping that would free up some cash, and allow me to grow, well that was three years ago, and we are still in an economic slump. ps why no mention of the company bond buying that is going on. part of QE is being used to buy company bonds, in the hope that this would encourage the large nationals to invest, but instead of that they are holding onto the cash.  i did the right thing, i paid my debts, kept my business going, and tried to hang on, but for how long can any of us expect to continue, in a climate of late payments and debt, and its not just other small businesses that are having trouble paying, its councils, housing associations, even government departments, all squeezing what they can out of a reduced budget, all hanging on to the money. if one company pays me late, i struggle, if they dont pay for three months, i am against the wall. i even tried subcontracting, it made my situation worse, yeah i had more work, but my cash flow went out the window, nobody is paying on time!. late payment is killing the little guy. i am taking on a minimum wage job, to help pay my bills, and hopefully keep going. i am a fighter, but jesus christ, how long will this economic war go on for. it's been five long hard years, and to be honest, i am near the point of giving up, because it just isn't worth it, and it is taking the piss when you see those at the top still raking it in. we are not wealth creators, most of us with small businesses work bloody hard to earn that bit more, and we do our best to look after our workers, and help them out. we are job creators, we take pride in what we do, and we care for our customers. we are being squeezed out of the market by the big capital backed mutant multinationals, that will squeeze the prices down, till we are all earning minimum wage. all in it together…bulls***

damicol:  well said and spot on  get out and move offshore is my best advice to you

stephen porter: i am more inclined to try and change the system, kick out all our self interested and corrupt politicians, and rebuild this country. make work pay, reward enterprise, and level the playing field.  this nation was built by small businessmen and woman, and it will be rebuilt by them!!! i was born in 62. there were small grocers and diy stores on every high street, little supermarkets and big ones, small insurance brokers, holiday shops. all paying reasonable business rates, all keeping the money locally. spending it in the community, and supporting the local economy. now all we have is out of town centres, with the same big names. avoiding tax's, and shipping the money out. they lobied for twenty four hour trading, sunday opening, they got it, and in one fell swoop, they destroyed our high streets, and local economies. if we let it carry on, there will be nothing left for anybody. that's what has got to change. we have to take back our democracy, rebuild our communities, and bring back local sustainable economies, and get back to some kind of a good life.

kingcanute: Change the system…? You'll be still trying to do that on the day you retire… Only one thing will change the system and that is revolution - the British don't 'do' revolution…most of them don't even 'do' politics…that is why everything is so messed up and it suits Brussels and the LibLabCon to have it that way. No matter HOW young you are, you don't have enough time to achieve your aim - take his advice and get a new life…this is NOT a dress rehearsal.

stephen porter: i know its a near impossible task, but someones got to try. i have nothing against either responsible capitalism or socialism, but i'm damn sure i am not going to put up with this corrupt bunch we have now, and that's all the parties, they are all as bad. say one thing then do another, lie cheat and full of corruption. we need to kick them all out, and start again.

scorpion_derooftrouser:  This outrageous business of late payment has been allowed to go on for far too long. It is a tool actively used by large companies to drive little guys out of business. I recall some executives at a large company I was contracting at discussing not paying some small company that had supplied them with a large, specialised and extremely expensive testing machine. Some guy with slightly more conscience than the others pointed out it would probably make them bankrupt, whereupon the chief said 'that's OK, we can just buy their assets and then control supply to our competitors'.