What is going to happen to BOE Base Rate in Jan 2009

Generali

steadysaver wrote: »

Bumhats!!! If you don't know we are all well and truely bu**ered

Ha ha. I'm not a soothsayer! I only wish I was. Some stuff is obvious like if you base your economy on selling ever more expensive houses to each other you'll come unstuck and the people lending money to the house sellers are likely to have problems too.

Other things are a little more complex!

steadysaver

Generali wrote: »

Ha ha. I'm not a soothsayer! I only wish I was. Some stuff is obvious like if you base your economy on selling ever more expensive houses to each other you'll come unstuck and the people lending money to the house sellers are likely to have problems too.

Other things are a little more complex!

If only we had people with a bit of common sense in charge at the top. Unfortunately we don't seem to teach common sense at public school

clobber_2

steadysaver wrote: »

Bumhats!!! If you don't know we are all well and truely bu**ered

I have thanked you, not least because I love the word Bumhats and will try and shoehorn it into every conversation I have for the rest of the week.

Happy Bumhats, everybody!

Generali

steadysaver wrote: »

If only we had people with a bit of common sense in charge at the top. Unfortunately we don't seem to teach common sense at public school

Nor in the state sector. Gordon Broon was state educated I believe.

steadysaver

Generali wrote: »

Nor in the state sector. Gordon Broon was state educated I believe.

Oh dear. Clearly we are not paying enough tax for the education system. I propose a new 45% tax rate...... oh wait

the_ash_and_the_oak

It looks as though they will lower them again. Seems to be consensus on that

But of more interest to me is how long they will stay low. Will it be for years like Japan or will there be a sudden (unexpected?) rise to protect the currency at some future point and when would this be

Will the US be a guide? Although the results have been somewhat different during 2008 as the directions of our currencies have shown, our actions have shadowed the US this year (with some lag)

When do you think there will next be a rise in interest rates?

steadysaver

the_ash_and_the_oak wrote: »

It looks as though they will lower them again. Seems to be consensus on that

But of more interest to me is how long they will stay low. Will it be for years like Japan or will there be a sudden (unexpected?) rise to protect the currency at some future point and when would this be

Will the US be a guide? Although the results have been somewhat different during 2008 as the directions of our currencies have shown, our actions have shadowed the US this year (with some lag)

When do you think there will next be a rise in interest rates?

Crystal ball time I am afraid.

Generali

steadysaver wrote: »

Crystal ball time I am afraid.

My opinion is that Gilt yields will be rising by this time next year unless the private pension system is nationalised to stave things off or something really mad happens like spending is cut to a manageable level.

the_ash_and_the_oak

Yes!

While people seem extremely confident in their views (on all sides) regarding asset prices, this does not seem to be the case in this area. Think more interesting stuff regarding future of economy might be gained by thinking a bit more in this kind of area where views are perhaps less entrenched

steadysaver

Generali wrote: »

My opinion is that Gilt yields will be rising by this time next year unless the private pension system is nationalised to stave things off or something really mad happens like spending is cut to a manageable level.

My "pension" is currenly in ISA's (a mixture of cash and S&S). I wouldnt put it past brown to remove the tax free limits. Some people have accumulated 10+ years of tax free cash. That would be a nice winfall for Brown. Having said that, with interest rates heading south, the tax take wont be much, so it probably won't happen, and he would favour your idea of pension nationalisation.

As my wage hurtle towards paying 40% tax I am unsure of what to do, do I pay all cash taxed at 40% into a private pension (my company offers no pension) only for it to only be stolen by HMRC or do I throw caution to the wind, go LTD and say a big up yours to IR35