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Downturn points to cut in rates

13468915

Comments

  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Realy wrote: »
    !!!!!!? wrote: »

    Look stop going off topic.
    4th time
    Still have not answered the question!!!!!!!

    If interest rates were 15% (during the last 5 years) and the money was still lent to people with no job at 130% do you think we would not be in the same mess?:rolleyes:

    Two can play at that game. I demand you answer my hypothetical pointless question first:

    If wood chuck could chuck wood, how many woods would a wood chuck chuck?
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • Realy
    Realy Posts: 1,017 Forumite
    !!!!!!? wrote: »

    Two can play at that game. I demand you answer my hypothetical pointless question first:

    If wood chuck could chuck wood, how many woods would a wood chuck chuck?

    It is not pointless though is it you are arguing cheap, lose lending was the cause not just loose lending,
    Compleatly relevent
    5th time.
    Still have not answered the question!!!!!!!

    If interest rates were 15% (during the last 5 years) and the money was still lent to people with no job at 130% do you think we would not be in the same mess?:rolleyes:
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    unforturtunately the common denominator is that all these things always seem to happen when !!!!!! is involved, self explanatory really...
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    dopester wrote: »
    BoE had no remit apparently for house prices, thanks to Gordy slicing all the powers up and shunting stuff over to the FSA, and seemingly each organisation unsure of its entire role to play or how to employ their powers.

    Which makes the August 2005 rate cut even more of a mystery then :)

    http://www.independent.co.uk/news/business/news/bank-caused-inflation-rise-with-rate-cut-in-2005-says-think-tank-446854.html

    Nothing to do with signs that the housing market was about to come off the boil at that time but subsequently went on one last 2-year bull run following the cut, I'm sure.


    Mind you, since the chancellor has now told the BoE not to worry about targeting inflation, running at about 250% of target currently, it makes you wonder what they are supposed to do.
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    !!!!!!? wrote: »
    Sure it was - Lehman caused all the problems. Otherwise LIBOR and base rates would be back to tens of bps apart :rolleyes:

    Tell you what, I know you you don't like it but lets introduce some facts.

    Lehmans was allowed to collapse on the weekend between 12th and 15th Sept.
    3mth LIBOR
    8thSept 5.737
    11thSept 5.704
    15thSept 5.715
    16thSept 5.791
    17thSept 5.871
    18thSept 5.978 and onwards

    By the was the interest rate at this rime was 5%. indeed 10s of bps apart.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    Realy wrote: »
    It is not pointless though is it you are arguing cheap, lose lending was the cause not just loose lending,
    Compleatly relevent
    5th time.
    Still have not answered the question!!!!!!!

    If interest rates were 15% (during the last 5 years) and the money was still lent to people with no job at 130% do you think we would not be in the same mess?:rolleyes:
    realy/
    Answer the Wood Chuck question dammit!
    /realy

    :rotfl:
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • JoJil
    JoJil Posts: 40 Forumite
    Realy wrote: »
    OT, we know about your use of "Retard" post so lets stay on topic this time !!!!!!,

    Do you also post under the user name of DitheringDad?
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    StevieJ wrote: »
    Tell you what, I know you you don't like it but lets introduce some facts.

    Lehmans was allowed to collapse on the weekend between 12th and 15th Sept.
    3mth LIBOR
    8thSept 5.737
    11thSept 5.704
    15thSept 5.715
    16thSept 5.791
    17thSept 5.871
    18thSept 5.978 and onwards

    By the was the interest rate at this rime was 5%. indeed 10s of bps apart.

    Is that the overnight rate - what about the 3 and 12 month rates then?


    My point was that LIBOR decoupled from base rates well over a year back.

    http://www.bba.org.uk/content/1/c6/01/06/58/BBA_LIBOR_Graphs_070907.pdf

    As is plain, the 3 and 12 month rates really started to pull away around August 2007.
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
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