Clarkson on the Credit Crunch ™

[BrilloPad]

Are you suggesting that a banking qualification's any better?

Only qualification needed to work in an IB is to shout alot.

[Bagpuss]

Possibly true, but I wouldn’t know as I didn’t do A level economics. I was busy with stuff like maths, physics, geography and trying to get laid. I did GCSE Economics, found it intensely boring, got an A and never understood what people found so difficult about it.

GCSE economics!? IIRC there was no such thing as O level Economics (I meanhow noddy would that be?) Are you sure it wasn't home economics?

[Mich the Tester]

GCSE economics!? IIRC there was no such thing as O level Economics (I meanhow noddy would that be?) Are you sure it wasn't home economics?

Yep, there was a GCSE economics in 1988. Look, I'm not proud of doing a GCSE; I didn't have any choice. There I was, thinking I'd do O levels at 16 (well actually not giving a toss) and suddenly this GCSE thingummyjig was foisted upon us all. And given the choice between economics and Latin, I chose economics.

Should've done Latin.

[Cyberman]

True. Which is why it would be madness to pass on the base rate cuts to mortgage holders, only business borrowing.

UK banks have a collective £700 billion deficit, so instead, they should be trying to attract savers, which means keeping rates up.

Absolute nonsense!! Reducing interest rates is a measure that is necessary to increase disposable income and to make life more affordable. Savings are taxed anyway like just about everything nowadays thanks to HMG which has taken so much out of people's pockets over the past ten years.
It has to start returning funds to the taxpayer somehow to increase spending power. The economy is far more important than savers.

[Mich the Tester]

Indeed.

I've found it comes in very useful.

I name all my variables in Latin.

Oh good. You can answer Doggy Styles' question; what's the latin for 'Balance your budget or you're f**ked'

[Bagpuss]

Absolute nonsense!! Reducing interest rates is a measure that is necessary to increase disposable income and to make life more affordable. Savings are taxed anyway like just about everything nowadays thanks to HMG which has taken so much out of people's pockets over the past ten years.
It has to start returning funds to the taxpayer somehow to increase spending power. The economy is far more important than savers.

Mich, can you pass this 'tard your GCSE economics book?

[Purple Dalek]

Indeed.

I've found it comes in very useful.

I name all my variables in Latin.

Ecce, in pictura er puella.

[Doggy Styles]

Absolute nonsense!! Reducing interest rates is a measure that is necessary to increase disposable income and to make life more affordable. Savings are taxed anyway like just about everything nowadays thanks to HMG which has taken so much out of people's pockets over the past ten years.
It has to start returning funds to the taxpayer somehow to increase spending power. The economy is far more important than savers.

Aha, there you are.

So let's get this straight - savers are not important to the economy. So where are banks ultimately going to get their funds from, to resolve their massive deficits, Gordon's money tree?

[OwlHoot]

.. It has to start returning funds to the taxpayer somehow to increase spending power. The economy is far more important than savers.

How about overseas investors? They're all abandoning UK banks and building societies in droves, and so are UK savers if they have any sense.

And without any savers, how are these institutions supposed to lend?

Oh I see - The Government gives them UK taxpayers' money, and they lend it back to UK taxpayers (after paying a 12% tax to the Government). Should work a treat

[Bagpuss]

Aha, there you are.

So let's get this straight - savers are not important to the economy. So where are banks ultimately going to get their funds from, to resolve their massive deficits, Gordon's money tree?

When you lower interest rates this wakes up the invisible free money dragon

Your CyberTory