Banks have NO excuse for not cutting rates

opinions4u

LandlordLee wrote: »

Brit - i did not say all banks i said some banks lend from depositers. My post was a reference to the likes of Northern Rock. When i said what planet are you on i meant regarding the ratio plucked out on thin air of 6-1. How do you correctly identify a saver? Someone with a savings account? Does not mean they have no borrowing.

6 times as many people in th UK have a savings account than have a mortgage. Some may only have £1, some may have several £million.

You really have spoken extreme nonsense in this post.

Bernard_Coleslaw

LandlordLee wrote: »

Bernard - Yes the money markets - You are right no money markets equals difficulty borrowing which is proving my point.

Bizarre. Because at 12:43 today you said:

They do not lend money from depositers, they get it from money markets cheap and sell as loans/mortgages at a higher rate.

And yet this evening you are acknowledging - at least partly - the lack of an adequately performing money market.

Do you know what happens when the supply of something is restricted? When it is massively outstripped by demand? I'll give you a clue - the price moves in a certain direction.

The 'something' in that previous paragraph is wholesale funding. So even if you (deliberately or accidentally) fail to take everyone's point on board about the part retail savings play, you cannot deny the effect a paralysed wholesale money market is having on mortgage pricing.

But I suppose it's far easier to indignantly swallow everything the red tops print when they're in full rant mode, isn't it?