Occupy London

[Huguenot]

Realistically it needs inflation to outstrip house prices to devalue them again: quantitative easing isn't funny money it's practical devaluation, I suspect it's faux grief from the Bank of England to be at 5%.

The trick is to make it in a controlled environment. If quantitative easing causes a crash in consumer confidence you end up with a market stripped of the incentive to trade.

Loosening up the housing market will take something more than devaluation - it'll take a massive increase in new house building, and a decrease in the advantage delivered to second house buyers through tax breaks (a reduction in demand from those who are least needy).

If you see a simultaneous reduction in the credit multiples you end up with massive negative equity, and a militant proletariat crying foul at being deliberately targeted by the money markets when it comes to property ownership - that means a breakdown in social cohesion.

Doing any of that without banking regulation is a recipe for repeat of the current crisis, but if you over regulate the banks you dry up money supply and crash employment.

It's such a dainty track to tread - and the populist approach is to simply burn the house down.

[StraferJack]

"It's such a dainty track to tread"

agreed

" the populist approach is to simply burn the house down."

less so. There is unfocused anger, but a clear idea of a path forward would sort that out overnight.

For "the greedy population" read "the markets" - volatile, prone to cutting noses off to spite the face, but ultimately easily placated eventually

[DJKillaQueen]

Today it was reported that rents were at an all time high.....so things are not looking good in that respect anytime soon.

I agree with H's points on getting the balance of regulation right. Without doubt, some of the answers lie in regulation, but it's no quick fix and will take time to do, without risk of damaging things further.

But I also lean towards SJ's view that even getting the smallest amount of regulation in place is going to be met with fierce resistance from those who seem to be completely deluded about the problems. And yes, while not all those in banking are culpable, I think I can safely put money on those at the top being the fiercest opponents to change.

[Jeremy]

More sensible regulation is definitely needed. But the governments of many of the main financial centres (UK, US, China/HK) don't want to risk driving business away. And there's no single organisation who has the power to whip them all into shape.

[????]

I think they'll achieve nothing

I'm not sure what they are offering

They, here and in the US, are mainly middle class 'radicals' and usual hangers on

BUT

They are expressing some fairly general wide held dissaffection with 'things' AND

It would be a sad day for the world if middle class youth stopped getting up to this sort of thing....so I salute them and their vague naiviety

[Loz]

The official Occupy London chant:

"WHAT DO WE WANT" - "We're not sure yet"

"WHEN DO WE WANT IT" - "Now!!"

Repeat until it's time to go home. My it's chilly.

[????]

...Or Starbucks opens

[StraferJack]

"The official Occupy London chant:

"WHAT DO WE WANT" - "We're not sure yet"

"WHEN DO WE WANT IT" - "Now!!" "

Even if that was true, , that's much the same chant I hear from whoever I listen to - experts, pundits, traders, markets - whatever

or at least, if not "not sure", it is at least divided

So by all means laugh at protestors but don't think they are that much more clueless than the people tasked with sorting out this mess

[????]

I agree with you SJ...no-one seems to have the paddle

[StraferJack]

also worth noting re: "empty tents" story

don't believe half of what you read, and none of what you hear

which, again, sounds like I'm only interested in defending the protestors, but I'm more interested in the wider picture. And being the rag-tag band they are, they are just too easy a target and distraction

[Loz]

Truth now is irrelevant to the Telegraph story. The stat has done the damage intended.

Personally, I think the protest is also managing to damage itself by overstaying its welcome at St Paul's. The 'aim' was to occupy London Stock Exchange. Whatever the agenda of St Paul's is for asking them to move on, the protesters should move on. They have their new Finsbury Sq site.