Will the BofE reduce interest rates to 0.25% today ?

[Uncle Spielberg]

I would say it is an evens chance. It is purely cosmetic though and the QE will increase by another £ 50 000 000 000 but the problem is it is not getting out into the general economy and people's pockets.

What would you do ?

 

[KZNSeagull]

I have to say that with the Jubilee celebrations, Olympics and other stuff going on this year, if that does not give the economy at least a little kick up the arse, then I am not sure what will. It should at least give the UK an advantage over the rest of Europe.

 

[Uncle Spielberg]

I have to say that with the Jubilee celebrations, Olympics and other stuff going on this year, if that does not give the economy at least a little kick up the arse, then I am not sure what will. It should at least give the UK an advantage over the rest of Europe.

According to Mervin King the opposite, a 0.5% reduction in UK growth due to the long weekend.

 

[Deleted member 2719]

Who knows what they should do now, let's face it i don't think anyone has a fast fix.


Maybe NSC super fans may have the answer or maybe even the plastic fan can still come good!

 

[yxee]

Why does every "solution" to the recession involve destroying the value of personal savings? Maybe after this they will print another £100bn.

 

[KZNSeagull]

According to Mervin King the opposite, a 0.5% redeuction in UK growth due to the long weekend.

Triffic. That must be based on lost production etc. The "feel good" factor may reverse that, but is immeasurable - people spend money when they are cheerful.

My wife watched a program the other day where the harbingers of doom, Sky News, were out on the street asking people if they were spending money - most replied that they were scared to but were not entirely sure what they were scared of as their jobs were secure.

What is needed is some positivity on Sky etc more often to get people feeling more cheerful.

People should also be encouraged to spend their money locally and not giving it to the likes of Amazon or rushing off abroad on holiday. Keep as much money as possible earned in the UK, within the UK. Easier said than done nowadays, but is had got to be encouraged.

 

[APACHE]

I'm sure those in the know about the banking industry will tell us that they are awash with money but won't lend it to get the country going, they're sitting on it to cover their bad debts, so more Q/E won't help. What's needed is what's been called for awhile, a national bank to loan to business that the main banks can't or won't lend to, christ this Q/E is our country's money not the banks.

 

[Lord Bracknell]

christ this Q/E is our country's money not the banks.

errr ... it's not real money at all. It's paper.

Printing banknotes for fun isn't any sort of solution.

 

[AMEXican Wave]

errr ... it's not real money at all. It's paper.

Printing banknotes for fun isn't any sort of solution.

But according to an 'expert' on radio 4 this morning, it has stopped the UK economy suffering a full blown depression.

 

[beorhthelm]

I'm sure those in the know about the banking industry will tell us that they are awash with money but won't lend it to get the country going, they're sitting on it to cover their bad debts, so more Q/E won't help. What's needed is what's been called for awhile, a national bank to loan to business that the main banks can't or won't lend to, christ this Q/E is our country's money not the banks.

yep, credit easing as its been called is the answer. its been suggested by Treasury or BoE a couple of times but then not followed up on. im pretty sure Osborne even allocated an amount for such a scheme in last autumns spending review.

 

[Hampster Gull]

Its real money in pthat it enables banks to sell assets to the BofE

 

[Lord Bracknell]

But according to an 'expert' on radio 4 this morning, it has stopped the UK economy suffering a full blown depression.

No doubt. But it would have been better to have achieved the same outcome by the government investing in infrastructure projects that create real employment.

The curious thing is, of course, that this would be condemned as "spending money that we don't have", whereas QE is embraced as a solution, despite the fact that it is spending money that doesn't exist (on projects that are failing to materialise).

No matter, though. The bankers seem to be happy.

 

[Simster]

No doubt. But it would have been better to have achieved the same outcome by the government investing in infrastructure projects that create real employment.

The curious thing is, of course, that this would be condemned as "spending money that we don't have", whereas QE is embraced as a solution, despite the fact that it is spending money that doesn't exist (on projects that are failing to materialise).

No matter, though. The bankers seem to be happy.

I totally agree with this.

 

[Herr Tubthumper]

No doubt. But it would have been better to have achieved the same outcome by the government investing in infrastructure projects that create real employment.

The curious thing is, of course, that this would be condemned as "spending money that we don't have", whereas QE is embraced as a solution, despite the fact that it is spending money that doesn't exist (on projects that are failing to materialise).

No matter, though. The bankers seem to be happy.

Totally this. Spot on.

I was listening to some chap a while back and he said that infrastructure projects (and investment in training) not only literally get things working again they make us a more investable nation. This is exactly what a country I like rather a lot did 4-5 years ago.

 

[WATFORD zero]

I suspect that the incompetence of the financial industry over the last few years has scared the shit out of most people and, as a consequence, when people get a few quid, they are paying off their credit card debts, car loans, mortgages etc.

With the realisation that ever increasing house prices wasn't going to pay for all the 4x4s, holidays and various consumer must haves, a large number of people have re-examined their credit commitments.

As to the solution - maybe showing some level of competence at senior levels (in industry and government) may help, but i'm not holding my breath !

 

[acrossthepond]

How about the UK joins the Euro, redenominates all its debt into that currency, takes huge sums of money from the Germans, defaults, leaves the Euro and reintroduces sterling. Can we get that done by teatime?

 

[Captain Sensible]

I hope interest rates go that low, I'll only pay 1% on my mortgage.

 

[Herr Tubthumper]

How about the UK joins the Euro, redenominates all its debt into that currency, takes huge sums of money from the Germans, defaults, leaves the Euro and reintroduces sterling. Can we get that done by teatime?

It might not be a bad idea. The eurozone is the biggest issue we face and the idiot Cameron has boxed himself into a corner where no one will now listen to him. Does he really think they will listen to him and sort the crisis to his timeline and to suit us generally? Why would they? For all his veto bluster he has been politically outmanoeuvred. The man is naive.

 

[itszamora]

It might not be a bad idea. The eurozone is the biggest issue we face and the idiot Cameron has boxed himself into a corner where no one will now listen to him. Does he really think they will listen to him and sort the crisis to his timeline and to suit us generally? Why would they? For all his veto bluster he has been politically outmanoeuvred. The man is naive.

Naive is being extremely generous.

 

[Uncle Spielberg]

It might not be a bad idea. The eurozone is the biggest issue we face and the idiot Cameron has boxed himself into a corner where no one will now listen to him. Does he really think they will listen to him and sort the crisis to his timeline and to suit us generally? Why would they? For all his veto bluster he has been politically outmanoeuvred. The man is naive.

Cameron is a complete irrelevance to them, infact he is a joke.