OK, rant time.
Just heard the Bank of England plan to lower interest rates again (from 1% to 0.5%)!

What are these idiots up to! In what way do they think that's going to make things better?
Firstly, it's another kick in the teeth for savers!
Secondly, it won't help borrowers as the banks can't lend at such low rates as they won't make a profit.
And thirdly, it wont help the banks as people will not be saving more money with them, so they won't have any money to lend, which they couldn't lend anyway - because they won't make a profit!

Am I missing something - who gains by this?

Your not missing a lot apart from the fact that they seem to now be burying their heads in the sand about the real problem and just want to be seen doing something.

The sooner we all except that times are going to be hard for a while and there is no magical fix the sooner we can get out of this mess.

quote:

---

Originally posted by jobsagooden
Your not missing a lot apart from the fact that they seem to now be burying their heads in the sand about the real problem and just want to be seen doing something.

The sooner we all except that times are going to be hard for a while and there is no magical fix the sooner we can get out of this mess.

---

If the base rate is lowered then the banks can borrow at a lower rate. If they pass the rate cut on to loan customers then they make the same profit. If they have a lower limit to their Mortgage rates (Nationwide etc) then the banks make MORE profit.

Personally i'd trust some of the top financial brains in the UK to know what they are doing with regards to trying to help the UK economy get back on track. A large proportion of savers are also borrowers (with much larger borrowings than savings - so as far as i'm concerned, the minority of people who will be out of pocket are far outweighed by the majority who face financial hardship (my sister faces losing her house now, as her hubby was a site supervisor for Redrow until all the job cuts)

Pandering once again to the irresponsible...

Throw all the help at those who borrowed ridiculous amounts just to have the fancy this and the whizzy that, in their spanking big house with the gleaming new beemer outside.

... and shaft those who bought what they could afford and put a little by for the future!

These are the same financial experts that got us into this mess in the first place.
I find the fact that they are considering "printing £150billion more money" even more stupid.

I may even consider doing that myself in my backroom with a scanner and printer.

quote:

---

Originally posted by tendoshingan
I may even consider doing that myself in my backroom with a scanner and printer.

---

i dont think they will actualy 'print 'the money they just add a few zeros the the banks own balance- all done electronicly- i think

quote:

---

Originally posted by Paul TigerB6
.....Personally i'd trust some of the top financial brains in the UK to know what they are doing with regards to trying to help the UK economy get back on track.....

---

Hmmm this also concerned me today....

Last night, the broad overview of the markets showed that they had finished on quite a nice gain (compared with recently).

Since the news broke that there was another cut due, the markets have lost their 'gain' ...and some!

As for trusting the 'top financial brains' ...you jest surely?

Fozzie

quote:

---

Originally posted by scootz
Pandering once again to the irresponsible...

Throw all the help at those who borrowed ridiculous amounts just to have the fancy this and the whizzy that, in their spanking big house with the gleaming new beemer outside.

... and shaft those who bought what they could afford and put a little by for the future!

---

One thing the govt could do is to reduce stamp duty.

Unfortunately I've been sensible and lived well within my means so have a bit of money in the bank that is getting FA interest.

I am looking to take advantage of low interest rates so looking to purchase a house - the selling fees, mostly S.D. is gonna set me back £ 50 K

Yep, you read that right £ 50 effin K.

Seeing as house prices are still droping, I am factoring that I may lose my job hence I stand not to see any of the £ 50 K should I need to sell in the short term.

sorry but the bank of England had a big part to play in the mess we now find ourselves in.

We had 5 interest rate rises in a short space of time before it all kicked off trying to reduce inflation. According to the top financial minds it takes up to 9 months for the affects of 1 rise to filter through. So by having 5 rises in a short space of time without seeing the affect the first couple had they completely stalled the economy and scared people into not spending.

Now they're doing the same reducing without seeeing the affect of the previous reduction.

I truly ffel sorry for people who rely on savings for modest incomes.

I have no sympathy at all for the banks, especially the chinless wonders at the top!!

The banks lend to each other at the inter loan bank rate which is usually 2-3% higher than the common interest rates set by the bank of England. The theory of dropping interest rates to make banks lend to each other or to make it easier fro them to borrow is reasonably sound only if they actually lend to each other.

Thoughs who have mortgages and are able to pay them in a responsible way will not gain from this interest rate cut as the banks will not pass it on in order to boost profits and therefore share holder confidence. The problem this creates is that the people who would have a few extra quid of disposable income to spend and put back into the economy (which is ultimately what is needed) won't have and so it achieves nothing.

Sorry might have waffled there a bit.

Bank of england will be acting under orders.

I still blame the FSA a tothles organisation that sat there while the banks self regulated themselves. What takes president for a director ?

a, making money safely and making a small bonus for himself and shareholders.

b, making money by big risks and making a large bonus for himself and shareholders.

So the share holders take the profit while things are good but we take the risk when things go wrong.

regards

Iain

quote:

---

Originally posted by bilbo

quote:

---

Originally posted by Paul TigerB6
.....Personally i'd trust some of the top financial brains in the UK to know what they are doing with regards to trying to help the UK economy get back on track.....

---

I'd love to be able to trust them. I once did. Trouble is 'top financial brains' are the sort the caused the crisis in the first place

As for borrowers v savers - I have a bigger mortgage that I have savings. The trouble is, the banks can only lend if they have the money - the savers money. If they lend money they don't have then everything goes ti....oh, wait - that's what happened

---

Well in my experience, all that lowering the rate is doing is shafting anyone with savings.

The banks aren't passing on the savings to people with mortgages, it's still extremely difficult to actually get a mortgage, and just to rub salt into the wounds the shitty little estate agents round here have responded to the economic downturn by doubling their prices from 1% to 2-2.5%.....

Strange that they didn't drop their prices when they were selling 10 houses a week......

I'm selling up and thinking about using a DIY 0.5% online estate agents. You have to show people round yourself but that's not that big a deal... The thought that in difficult financial times I might end up paying an estate agents £8k is galling- how many solids months work are they really doing for that much money? Little gits....

We have ten estate agents on our high street. Despite their protestations of "we can only give you a % quote when we've valued your house" I'm haggling them down. Usual trick starts when they start blowing smoke up your arse about selling lots of houses

EA: "things were terrible 9 months ago but they're a lot better now and we're selling more houses"
me: "Ah 9 months ago, that must have been when you put your prices up from 1% to 2%"
EA: "yes, things were pretty bad"
me: "I'm glad that things are much better now, so 1% would be a reasonable fee to pay once again then"

Cue back-peddling and squirming.....
Hehehehe....

quote:

---

Originally posted by Agriv8
Bank of england will be acting under orders.

I still blame the FSA a tothles organisation that sat there while the banks self regulated themselves. What takes president for a director ?

a, making money safely and making a small bonus for himself and shareholders.

b, making money by big risks and making a large bonus for himself and shareholders.

So the share holders take the profit while things are good but we take the risk when things go wrong.

regards

Iain

---

quote:

---

Easier said than done, modern printers and scanners look for the Eurion pattern.

It is there on all our UK notes and Euros.

---

Well I consider myself a typical consumer. I have a mortgate of 100k and savings to cover me for 6 months unemployment.

I don't usually buy on credit unless it is too low a rate to refuse (0% on a sofa, bed or furniture isn't to be sniffed at), but I'm in the market for a loan to opt out of the company car scheme and the rates are insane!

I want a £5k loan and as my current best savings rate (Nationwide Cash ISA) is 0.5% and the BoE rate looks like going to 0% I'm willing to go to 4-4.5% on the loan, but the banks seem to think that the appropriate rate is around the 8% mark. Is it me being unrealistic or are the banks actually trying to avoid doing business in oreder to recoup all their losses from the Government who won't let them go bust.

I'd rather we'd saved Northern Rock - but stopped them rempossessing everyone to get the cash back in fast to repay the loan - and let the others HSBC, RBOS, Lloyds, etc. go bust before compensating those who lost money directly. It wouldn't have affected competition and there are hundreds of local Building Societies and international banks inteligent enought to avoid this fiasco who would step in to their place.

Sorry to rant but it annoys me that familiy owned companies such as the one I work for are struggling just because bankers got rich being stupid then got richer still being bailed out.

quote:

---

Originally posted by 02GF74

quote:

---

Originally posted by tendoshingan
I may even consider doing that myself in my backroom with a scanner and printer.

---

Easier said than done, modern printers and scanners look for the Eurion pattern.

It is there on all our UK notes and Euros.

---

aaaand theyve gone and done it!!!

remember that all this will have to be paid for and income tax ,vat and tax on beer fags and petrol will go up big time ........ KN@BHEAD BROWN

Just confirms that our Country & our economy is run by idiots who really haven't got a clue what is going on in the real world, they sit in their ivory tower thinking about the whopping big pension which they are still going to get regardless of their perfomance & the performance of the economy.
I'd be prepared to bet we will have riots by the end of the summer as the jobless & repossessed totals climb - I think the sticky brown stuff has only just started to het the fan - there will be much worse to come I fear

I am another person who things this latest BofE base cut is a waste. It will do little or nothing to affect the LIBOR, help some people who have a rate linked to the base rate(but they have already had plenty of rate drops((includes me but I still think it is illigical)) , does nothing to help those on higher fixed mortgages and makes us less attractive to foreign investors.

The gain? companies borrow cheaper means cheaper goods - but nobody is buying. 2.5% drop in VAT was ignored why should this have much effect.

Blame the 'jobs for the boys' world of banking.

Don't go thinking it will help people with index linked mortgages, it will do sweet FA as they all have a floor which they don't go below and which was reached some time ago. Our Nationwide one was 2.75% (most are 3%) but ours was then cut to 2.5% out of good will.

quote:

---

Originally posted by John.Taylor
Don't go thinking it will help people with index linked mortgages, it will do sweet FA as they all have a floor which they don't go below and which was reached some time ago. Our Nationwide one was 2.75% (most are 3%) but ours was then cut to 2.5% out of good will.

---

Didn't here many savers moaning when interest rates where high ?

Interest paid on savings by people paying interest on mortgages etc.....

Two sides to every coin ?

BTW I have more saved than I owe so no I don't have a vested interest in low interest rates, but anyone who can afford not to take advantage of lower mortgage repayments should make hay whilst they can, never been a better time to knock years off your mortgage.

Well, I have worked hard a fair bit of my life so that I can end up with no debts and a fair bit of savings - so I am unimpressed...



[Edited on 5/3/09 by David Jenkins]

The only stock markets making any decent gains today given the global climate, are the Asian Pacific and South Americas......

I have a Flexible Mortgage to which I have always overpaid..... nearly finished it now, and whacking in a bit extra.... (don't have any other debts), so I feel fortunate that I can.....

When I was studying Economics and Commerce (a long time ago admittedly), I was told that the subject was like composing an essay, you have to have (think through) the beginning, middle and conclusion of the 'story'...... why oh why does this government/financial institution only ever think as far as the 'beginning' with everything they meddle with...

Fozzie