About time interest rates were slashed

[HairyArsedBloke]

It should have happened to LTCM in 1998 - by slasing interest rates then and in 2002 the "Greenspan put" got us to the current situation. I don't mind one going under - it is if it is more than one we should worry.

Yes.

[Cyberman]

That's a very un-Tory like attitude, Thatchers Government kept interest rates high for years to combat inflation, those high rates did no favours at all to business and forced tens of thousands of reposessions. In Thatcher and Majors Governments the interest rates were set by the Chancellor too rather than the Bank of England so the blame lay entirely with the politicians.

Recent base rate drops have not been mirrored by mortgage lenders and some even put their rates up 2 days ago because of the interbank money costs going up.

... but today we have a very serious situation and Brown is very complacent . In Thatcher's day at least she believed in balancing the books. Brown has let rip with spending and borrowing, and with the credit crunch also having a devastating impact there is a major risk of a depression. In times like this normally taxes would be reduced, but Brown has failed us all by having not having that contingency available. Thus, interest rates are our only major tool now available, and yet again we are dithering towards disaster. We needed a 1 percent cut a year ago.

[Bagpuss]

Interest rates should have been slashed almost a year ago. Jobs and people's homes should come before inflation, but Brown in his wisdom put the country in a straightjacket with the MPC only having to care about infation. Yet another failure of New lie policy!!

It makes no difference if the banks won't lend to each other. The last time interest rates went down the LIBOR went up!

Having rates too low for too long has made this mess!
Thank god you aren't the chancellor, it would be an even worse mess

[BrilloPad]

It makes no difference if the banks won't lend to each other. The last time interest rates went down the LIBOR went up!

Having rates too low for too long has made this mess!
Thank god you aren't the chancellor, it would be an even worse mess

Why are you trolling? quite unlike you - are you trying to remind us of atw? or maybe you think that any serious economic debate should be interrupted by some nonsense (see post #10 on this thread).

Libor=base rate + swap rate. swap rate went up by more than base rate went down.

But maybe you have hit on a good point - maybe swap rate is high as no-one trusts Darling or Brown. However I think if Cyberman was in charge then trust would be restored and economic recovery would commence.

[TimberWolf]

If they want to keep inflation down, why don't they just print less money?

Money isn't real anyway, it's just numbers. As long as we have our energy needs in place we will be fine, no mater how much chancellors and bankers screw around. Fortunately we are not dependent on importing energy or dependent on foreign powers for our supply

We really should get away from the concept of money being something real though and get the real things in place rather than doing the opposite.

[Cyberman]

It makes no difference if the banks won't lend to each other. The last time interest rates went down the LIBOR went up!

Having rates too low for too long has made this mess!
Thank god you aren't the chancellor, it would be an even worse mess

It was not the low interest rates that were the problem. It was the failure to adhere to credit controls. Lending should always be based on bank deposits and of course on ABILITY TO REPAY. The effective removal of this link by Brown and any sort of commonsense regulation to 'remove bust for ever' was the true failure!!

[BrilloPad]

If they want to keep inflation down, why don't they just print less money?

Because people would just pay by credit card?