FED cuts by 0.5%

kennyboy66_2

Realy wrote: »

Why do you want mass unenployment?

Cheaper houses ?

kennyboy66_2

!!!!!!? wrote: »

Why bother addressing points made and defending your own position when you can just make a sarky put-down against the person whose views you disagree with, eh?

Seems to be a time-honoured tradition amongst a certain element on this forum.

How can you keep a straight face writing that ?

chucky

!!!!!!? wrote: »

Got any facts to debate or are you back to just taking pot shots at me personally?

Yes, I have my opinions - disgraceful eh?

are you being serious!?!?

i was actually defending the fact that you should have an opinion, different to others nothing else.

i see that this thread has been dragged down to your level by you taking it going well off topic.

i'll go stock up on my tinned food, bottled water and start buying caves - isn't that more your level??

WTF?_2

kennyboy66 wrote: »

"without throwing bogus arguments in".

I just knew you wouldn't be able to help yourself.:rolleyes:

I'd like to see interest rates down to 2.5% by April.

You were the one who produced an arbitrary set of values and demanded I pick one of them. Since you're so interested in starting silly games, please tell us why interest rates should be 2.5% and not 2%, 1.5%, 1% or - since apparently low rates are the universal solution - 0% so that we can all live happily ever after?

The argument here isn't about what exact amount the IRs should be at - it's about "is slashing already low interest rates at this time a good idea?"

It is laughable to think that rates that low would re-ignite the housing market.
I suspect house prices will fall for the next 2-2.5 years, albeit at a slightly lower rate than over the last year.

Keeping interest rates the same or increasing them will mean more business failures, more unemployment, more repossessions, reduced tax revenues & higher government borrowing.

Zero percent then. Sorted. Why are we waiting? Let's press the magic 'low rates' button and save the world economy :rolleyes:

Of course unless you are only interested in seeing house prices fall by as much as possible then keeping rates as they are doesn't seen to make much sense.

Or you could have a holiday booked to Florida.

Because inflation doesn't exist and will never be a threat, right?

Realy

!!!!!!? wrote: »

You were the one who produced an arbitrary set of values and demanded I pick one of them. Since you're so interested in starting silly games, please tell us why interest rates should be 2.5% and not 2%, 1.5%, 1% or - since apparently low rates are the universal solution - 0% so that we can all live happily ever after?

The argument here isn't about what exact amount the IRs should be at - it's about "is slashing already low interest rates at this time a good idea?"




Zero percent then. Sorted. Why are we waiting? Let's press the magic 'low rates' button and save the world economy :rolleyes:



Because inflation doesn't exist and will never be a threat, right?

You are very good at shouting out the problems but a very simple 3 point question causes you to throw a wobbler.
You know the answer at the moment is low rates but just cant bring yourself to say it so go off on a tangent, like a politician avoiding a question.

adr0ck

!!!!!!? wrote: »

Because inflation doesn't exist and will never be a threat, right?

inflation isn't the most pressing problem at the moment

the state of the economy is

chucky

!!!!!!? wrote: »

The argument here isn't about what exact amount the IRs should be at - it's about "is slashing already low interest rates at this time a good idea?"

4.5% really low interest rates. where did you get that from!?!? Japan, the US and the Euro rates are much lower.

!!!!!!? wrote: »

Because inflation doesn't exist and will never be a threat, right?

inflation is a much smaller problem compared to other issues - it can be put on the back burner for a while as it is on it's way down currently.

kennyboy66_2

!!!!!!? wrote: »

Zero percent then. Sorted. Why are we waiting? Let's press the magic 'low rates' button and save the world economy :rolleyes:
Because inflation doesn't exist and will never be a threat, right?

I would always set interest rate policy with regard to CPI inflation, asset inflation, wage inflation, unemployment and economic growth.

Obviously the £ has devalued against the dollar, however almost all food and industrial commodities that are relevant have fallen even faster.

Perhaps you can see inflationary pressures everywhere in the UK, can you let me know what they are?

IveSeenTheLight

!!!!!!? wrote: »

Seems to be a time-honoured tradition amongst a certain element on this forum.

If ever the pot - kettle - black anology was appropriate

StevieJ

van_persie wrote: »

People seem to think that interest rate cuts are the miracle cure to the current economic crisis; let's not forget, it's low rates that encouraged this insane boom, along with lax lending criteria, making over-leveraged borrowers sensitive to even the smallest rate rises.
Now, we have a disconnect between the IRs set by the BoE and that exercised by the banks. Those on tracker rates will not benefit fully from rate cuts, for example. Other mortgage products will probably go UP in the event of another IR cut with most banks keen to attract savers rather than borrowers.
Personally, I feel rates will be going up again to counter hyperinflation by mid next year.
As for house prices, they'll continue their downward spiral until they reach affordable, sustainable levels with sensible lending criteria.

What does that mean?