Reply to: BofE announces Rate cut by .5% !!!!!

[BrilloPad]

Well according to the trusted standards of fiscal weighting, a pot noodle is still worth a five finger shuffle.

I think Diver has tried to reduce the rate to four fingers with the help of his power tools!

[hyperD]

Well according to the trusted standards of fiscal weighting, a pot noodle is still worth a five finger shuffle.

[Cyberman]

Ere. Cyberman, do you think the government may have been a bit inept over NR then? I only ask as you seem a bit unsure - and you've hardly mentioned it

As I've said many times, New Lie have been totally inept. Hopefully, the true extent will come out in the January Judicial Review brought by the major shareholders on compensation.
You may not be aware, but HMG brought in a law to keep their dealings on Northern Rock a secret, but I think they will find that they are under a duty to disclose. This should be very embarrassing for them and Mr Preston at the BBC !!

[Peoplesoft bloke]

interesting comment on the beeb site -


Cutting interest rates will have little effect unless they are cut by around 2.5% which the teasury will never do.

The global financial markets have been hoodwinked by the Americans who have off-loaded their bad debts by repackaging them to make them look good. Now we are all paying and will pay for some years to come.

This has been created due to systemic problems with the global financial markets and the total lack of any proper audit trails and proper risk management of debts and borrowing.

All of those bad debts are like grenades that have started exploding in the system and is now effecting everything. What we have seen so far is the aftermath of these questionable debts and the effects will continue for some time to come.

affecting

[AlfredJPruffock]

interesting comment on the beeb site -


Cutting interest rates will have little effect unless they are cut by around 2.5% which the teasury will never do.

The global financial markets have been hoodwinked by the Americans who have off-loaded their bad debts by repackaging them to make them look good. Now we are all paying and will pay for some years to come.

This has been created due to systemic problems with the global financial markets and the total lack of any proper audit trails and proper risk management of debts and borrowing.

All of those bad debts are like grenades that have started exploding in the system and is now effecting everything. What we have seen so far is the aftermath of these questionable debts and the effects will continue for some time to come.

[Peoplesoft bloke]

I would also add that a 1% cut with bank recapitalisation a year ago would have saved many people who have now lost their homes due the extended credit crunch. Mortgages would have been much easier to get.
Remember, the demise of Northern Rock is destined to reduce their mortgage book by about 60 Billion, and thus remove that sum from overall national liquidity, and that was really stupid and unecessary !!

Ere. Cyberman, do you think the government may have been a bit inept over NR then? I only ask as you seem a bit unsure - and you've hardly mentioned it

[Cyberman]

I would also add that a 1% cut with bank recapitalisation a year ago would have saved many people who have now lost their homes due the extended credit crunch. Mortgages would have been much easier to get.
Remember, the demise of Northern Rock is destined to reduce their mortgage book by about 60 Billion, and thus remove that sum from overall national liquidity, and that was really stupid and unecessary !!

[Fishface]

Pay your corp tax early and get 5% from the tax office

[Cyberman]

How can it be 1 year too late? Last year the housing market was still climbing. Cutting rates may have prelonged the boom and added further to bad debt.

... because Northern Rock would not have been nationalised, Bradford and Bingley would have survived, and the US had cut their interest rates drastically in June 2007 !!! .... lending may not have totally dried up and we would not now already be in a recession!!

This government have been totally incompetent and this delay in rate cut and recapitalisation of the banks will be shown to cause many more job losses than were necessary.

[Bagpuss]

I would imagine that all banks that participate in 'partial nationalisation' have been instructed to cut by .5% or else !!!! HMG are now calling the tune..... but this is 1 year too LATE !!!

How can it be 1 year too late? Last year the housing market was still climbing. Cutting rates may have prelonged the boom and added further to bad debt.

[Cyberman]

Soon be at a Japanese style 0% interest rates, 80% fall in property prices, and no lending or borrowing possible.

I would imagine that all banks that participate in 'partial nationalisation' have been instructed to cut by .5% or else !!!! HMG are now calling the tune..... but this is 1 year too LATE !!!

[DimPrawn]

Even for a coordinated move it still takes one party to state their intentions. All I am saying is that we had more reasons to cut than the EU and therefore probably told them our intentions. They then obviously agreed to follow.

The fact remains that we still have the ability to act unilaterally because we have the pound. If we did not have the pound then we are at the mercy of ECB decisions which are ultra-cautious. The ECB had a meeting just over a week ago and decided to keep rates as they were !!!

I expect another half point cut by HMG(err sorry... independent BofE) very soon !!!

Soon be at a Japanese style 0% interest rates, 80% fall in property prices, and no lending or borrowing possible.

[Cyberman]

You must be right - those godless pinkos over at bloomberg are also saying it is coordinated - can't possibly be true.

Even for a coordinated move it still takes one party to state their intentions. All I am saying is that we had more reasons to cut than the EU and therefore probably told them our intentions. They then obviously agreed to follow.

The fact remains that we still have the ability to act unilaterally because we have the pound. If we did not have the pound then we are at the mercy of ECB decisions which are ultra-cautious. The ECB had a meeting just over a week ago and decided to keep rates as they were !!!

I expect another half point cut by HMG(err sorry... independent BofE) very soon !!!

[Peoplesoft bloke]

.... and as I am with HSBC on a tracker I expect 100% of this cut !!!

Me too - boomed! (sort of)

[Peoplesoft bloke]

Dunno, who to trust more - Bagpuss from CUK or 6 of the biggest central banks in the world. Hmm, tough one.
.

Bagpuss. No contest.