Gilt Yields on Planet ZIRP – The QE paradox – why Gilt Yields rise. Posted on June 12, 2009 by John Ashcroft The introduction of a Zero or virtual Zero interest rate policy in the USA and UK led to the concept of Planet ZIRP. As we wrote in December - "Welcome to Planet ZIRP. Unfortunately, we do not have a handbook, … Read More
Bank cuts rates by 0.5%, the slow road to Planet ZIRP Posted on January 9, 2009 by John Ashcroft The Bank of England MPC reduced base rate by 50 basis points to 1.5% this week, avoiding a full rate point cut as some had expected. Interest rates in the UK have now fallen to the lowest level since the … Read More
UK : Credit is falling, spreads are rising, defaults increasing Posted on January 2, 2009 by John Ashcroft According to the Bank of England the number of new home loans in November fell to the lowest level since records began a decade ago. Just 27,000 mortgages for house purchase were approved by banks and building societies, down from … Read More
Bank Lending – to fall over next two years says Barclay Chief Posted on December 20, 2008 by John Ashcroft Consumers and companies will continue to find it difficult to access credit for the next one to two years, the boss of Barclays bank has said. Talking to the BBC's Business Editor Robert Peston, Mr Varley stressed that the banks … Read More
Guide to Planet ZIRP : Bernanke submits a chapter Posted on December 19, 2008 by John Ashcroft "Welcome to planet ZIRP. Unfortunately, we do not have a handbook, or fully understand the terrain. Our process of quantative easing, the plan to helicopter money may work but as a fire fighting option, it may be like dropping water … Read More
Nouriel Roubini – policy on planet ZIRP Posted on December 17, 2008 by John Ashcroft Nouriel Roubini succinctly outlines the policy options on Planet ZIRP. (Oasis adage not included). "When traditional monetary policy is less effective, non-traditional policy tools aimed at generating greater liquidity and credit via quantitative easing and direct central bank purchases of … Read More
Guide to planet ZIRP – comments and contributions welcome Posted on December 17, 2008 by John Ashcroft "Welcome to planet ZIRP. Unfortunately, we do not have a handbook, or fully understand the terrain. Our process of quantative easing, the plan to helicopter money may work but as a fire fighting option, it may be like dropping water … Read More
