Friday, June 12, 2009
QE and NE
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

The Bank of England's quarterly bulletin contains a comprehensive article on quantitative easing, which is a useful reference, and on negative equity, which it estimates is affecting between 7% and 11% of households with mortgages (that's about 40% of all UK households). Some have relatively small amounts of negative equity, it says, but also argues that in theory, given problems in the banking system, it should be a more serious problem now than in the early 1990s. But arrears and repossessions are lower than then. The bulletin is here