Sorry, was that $40 billion a month until further notice?

17 Sep Sorry, was that $40 billion a month until further notice?

London’s mortgage brokers are dancing in the streets. Well not quite…

This isn’t the place to comment on the right or the wrong of the whole capitalist world, but last week we saw the ECB declare it would do what it has said all along that it wouldn’t – create Euro bonds (buy the various governments debts). This U-turn defies what Germany has stood for (or has said it stands for). So, relatively quietly, the Euro-zone is saved. Was it really ever going to go bust?

Meanwhile over the pond, the Fed has decided, through QE3, to print $40 billion a month. Until all is well in the world again and, in fact, beyond. And rates are staying put at emergency low levels until 2015.

Cribbins. Sounds definitely like a rescue plan to me, in the form of print more dosh until the problem goes away. Now that has been everyone’s plan all along (it always is), but we waited until now as the wreckage needed to be cleared away.

Of course all of this will take time to filter through. Sadly, as it does not represent an immediate and terrible news story, it hardly registers in the media (poor old Kate, I think we all feel Great Britain has been defiled).

Now I hate to be smug – but we have been saying this all along. So here we go for another economic cycle – more bumps along the way – but quite predictable really.

But don’t take it from me – Sir John Major was on with Andrew Marr on Sunday morning (I just couldn’t move after Match of the Day). Now he knows about complete economic disasters, recessions, negative equity (HOW we forget!). Anyway – he actually had a compelling and reasonable chat about him (a little grey perhaps). Now if Sir John says it’s over, well…..