Britain finds it's also in the burning building

**shaunbhoy** · 17 October 2011, 07:34

It recommends that the Bank should consider cutting interest rates from 0.5 percent to 0.25 percent.

**DimPrawn** · 17 October 2011, 08:04

Originally posted by shaunbhoy View Post

Yes, you'll save £100 a month on your mortgage interest and pay an extra £200 a month on food, clothes, fuel, utility bills, rail fares, etc due to a worthless pound and rampant inflation.

**TimberWolf** · 17 October 2011, 08:18

Might as well go the whole hog and just transfer the money of savers to borrowers.

**xoggoth** · 17 October 2011, 08:18

As DP says. It is not high interest rates but failure by banks to lend that is the problem. When low interest increases inflation by dropping the pound that causes people to try and save money,
also obviously diminishing spending by any with significant savings.

Perhaps someone can explain how it helps. I can see no logic in it at all.

**TimberWolf** · 17 October 2011, 08:25

Easy solution, just ask these guys.

They won a Nobel prize in economics after all, so it's not as if their work is going to be as much use as second hand toilet paper in a few years is it?

**Freamon** · 17 October 2011, 21:55

Originally posted by xoggoth View Post

As DP says. It is not high interest rates but failure by banks to lend that is the problem.

The reason banks aren't lending is that there are no good prospects to lend to. Well run companies aren't expanding their businesses, as this would be idiotic in the face of a downturn, so they don't have any need to borrow. Poorly run companies are expanding, but banks don't want to lend to them, as they got burnt doing the same thing the last go around. Same goes for consumers - everyone bar the near-bankrupt is cutting back.

It annoys me when so-called experts talk about this on the news as if there is a massive unmet demand from the public/businesses to borrow money. If that was the case, interest rates would be far higher, as happens with the price of anything when demand is greater than supply.

**wim121** · 17 October 2011, 22:28

Originally posted by TimberWolf View Post

Might as well go the whole hog and just transfer the money of savers to borrowers.

Hahahaha why not?

People who save, especially in this economic climate are retarded mongooses that deserve to be shot and defeathered.

> During boom, you invest in companies or save, trade commodities, etc, at high intrest rates for short terms.
> During bust, you loan legally/illegally, take advantage of changing markets or invest in bricks and mortar.

That is the only thing you should ever be doing with spare cash ever. If you dont, then you dont deserve your money and should give it all to me when you believe my story about being a nigerian.

Britain finds it's also in the burning building