DOOM: wealth tax by stealth (not really)

[xoggoth]

I've already cashed in all my savings, I keep them in a box under my bed.

[_V_]

Quite right. If anyone is not all in on $GME, they're crazy!

Don't forget Dogecoin Price | DOGE Price Index and Live Chart – CoinDesk and $tsla

[Paralytic]

But then what sort of people have lots of cash anyway? With the returns on offer from almost all other asset classes, cash really is trash.

Quite right. If anyone is not all in on $GME, they're crazy!

[_V_]

Negative interests rates are coming, banks have been preparing for this for some time.

Immediate effect will be current accounts and savings accounts will start taking an interest payment from you each month. This will have the effect that borrowing and being in debt will seem better value than being cash rich.

But then what sort of people have lots of cash anyway? With the returns on offer from almost all other asset classes, cash really is trash.

S&P 500 Historical Annual Returns | MacroTrends

[OwlHoot]

The Bank of England took a step closer to introducing negative interest rates for the first time on Thursday, after it gave lenders six months to prepare for such a move. ..

Does that mean banks will have to pay us for having an overdraft?! Wow, things are looking up

[d000hg]

So my base rate + 0.5% tracker mortgage could go negative.

Will the bank pay me interest, instead of me paying them?

Of course they wont, but they should.

If you took out a mortgage prior to 2005ish you might have ended up being paid for your mortgage then, when rates plummeted following the banking crash.
Since then, all lenders will have a minimum cap clause in place.

[AtW]

Of course they wont, but they should.

Why?

It would have only "should" if BoE was lending money to banks directly for specific lending purposes (mortgages) and contractually demanded that rate cuts/increases are passed down, that's not the case.

The whole system is complete farce.

[Paralytic]

So my base rate + 0.5% tracker mortgage could go negative.

Will the bank pay me, instead of me paying them?

Of course they wont, but they should.

Is your tracker based on the BoE base rate or your lender's base rate? I very much doubt your lender has to drop their rate even if the BoE does (read the small print).

I remember when I had a mortgage (Woolich, tracker +0.19%) and Barclays changed their T&Cs as the BoE interest rates were falling. This was because they actually had some customers on negative (relative to base rate) trackers.

It’s the rate the Bank of England charges other banks and other lenders when they borrow money, and it’s currently 0.10%. The base rate influences the interest rates that many lenders charge for mortgages, loans and other types of credit they offer people. For example, our rates often rise and fall in line with the base rate, but this isn’t guaranteed.

(my bolding)


Mortgage base rate | Bank of England base rate | Barclays

[Fraidycat]

So my base rate + 0.5% tracker mortgage could go negative.

Will the bank pay me interest, instead of me paying them?

Of course they wont, but they should.

[AtW]

“ The Bank of England took a step closer to introducing negative interest rates for the first time on Thursday, after it gave lenders six months to prepare for such a move.

Threadneedle Street’s monetary policy committee (MPC) voted unanimously to keep the official interest rate at historically low levels while it agreed to set the deadline for banks to prepare themselves after policymakers said they were ready to make negative lending rates part of their toolkit.

According to the minutes of the MPC meeting, officials were split over asking lenders to put in place the measures needed to facilitate negative rates on loans and mortgages, with some fearing it would signal to investors that the central bank planned to move ahead in the next few months.”

UK banks given six months to prepare for possibility of negative interest rates | Interest rates | The Guardian

What a load of crap the whole thing is