Inflation - Interest Rates

Really2

Thrugelmir wrote: »

The banks and building societies are fighting for deposits to fund mortgages. Not to lend money.

Take a look through the weekend press and see how many financial institutions are looking for fixed term deposits.

Especialy Building Societys they are going back to how they used to do things.

Lend what money they have (savings), quiet a few got burned with over exposure to mortgages and lending cash they simply did not have (in deposits)

ad9898_3

JonnyBravo wrote: »

From your signature:




Just how "old" is that proverb? :rolleyes:

After thinking, I deleted my first response to this sarcastic flippant comment, just !!!!!! is your problem ?, you either believe it or you don't, if you don't move along. Jesus this forum is becoming so full of sh*t lately, what with the !!!!!! from yesterday.

Dan:_4

Thrugelmir wrote: »

The banks and building societies are fighting for deposits to fund mortgages. Not to lend money.

Take a look through the weekend press and see how many financial institutions are looking for fixed term deposits.

True, but competition is starting to pick up, sure it will be slow and slugglish, but all banks are greedy and want to profit. I was in my local Halifax branch the other week [for a different matter] and the advisor was practically begging me to remorgage with them.

Give it time, and they will be fighting to lend money - this will cause fixed rate competition.

Dan:_4

ad9898 wrote: »

After thinking, I deleted my first response to this sarcastic flippant comment, just !!!!!! is your problem ?, you either believe it or you don't, if you don't move along. Jesus this forum is becoming so full of sh*t lately, what with the !!!!!! from yesterday.

Ad, mate....why are you getting so mad lately? Your one of the best posters on this forum. I know it can sometimes get a bit heated, but please don't take nothing personally.

inspector_monkfish

ad9898 wrote: »

After thinking, I deleted my first response to this sarcastic flippant comment, just !!!!!! is your problem ?, you either believe it or you don't, if you don't move along. Jesus this forum is becoming so full of sh*t lately, what with the !!!!!! from yesterday.

Woooooaaaah there baby.
deep breaths dude.........8, 9, 10........ and relaaaaax

JonnyBravo

ad9898 wrote: »

After thinking, I deleted my first response to this sarcastic flippant comment, just !!!!!! is your problem ?, you either believe it or you don't, if you don't move along. Jesus this forum is becoming so full of sh*t lately, what with the !!!!!! from yesterday.

Lovely.

Yet your behaviour is clearly just what the forum needs?


My point was more along the lines that seeing as the jet engine is in the "proverb" it probably isn't very old and it is probably more an invention of someone who wants to make a point about the finite nature of oil resources. More especially those who would want to make a point about the end of oil being very close.
I'm not saying that person is you incidentally if you're now going to read that into it.


If you find the forum is getting you wound up so, why don't you take a little break from it as, in the past, you've been a very level headed and well thought of poster.

Thrugelmir

Dan: wrote: »

True, but competition is starting to pick up, sure it will be slow and slugglish, but all banks are greedy and want to profit. I was in my local Halifax branch the other week [for a different matter] and the advisor was practically begging me to remorgage with them.

Give it time, and they will be fighting to lend money - this will cause fixed rate competition.

You mortgage advisor at the Halifax is probably driven by a sales target and commission.

Banks aren't greedy. Like any business they are in existance to make a profit. Some financial institutions have raised rates as they don't want high volumes of new business.

If the Bank of China commit £10 billion to new mortgage lending in the coming year. At say an average loan of £125k thats only 8,000 new mortgages. Though more likely they will pick up remortgage business.

If you live in hope that the "Good old days" of lending will return. Then I fear not.

nearlynew

As a "peak-oiler", I like ad's signiture.

Perhaps he should just drop the "old" though, eh?

inspector_monkfish

The quote (or original quote loosely based on the above) came from Rashid bin Saeed Al Maktoum, former UAE Prime-Minister, who died in 1990.

Doesn't say exactly when he said it, but I would guess sometime around late 70's early 80's:
http://en.wikipedia.org/wiki/Rashid_bin_Saeed_Al_Maktoum

Thrugelmir

Really2 wrote: »

Especialy Building Societys they are going back to how they used to do things.

Lend what money they have (savings), quiet a few got burned with over exposure to mortgages and lending cash they simply did not have (in deposits)

and they are currently committed to exising borrowers on life time trackers. Which has to funded by higher rates on new borrowers. Its going to take some years for the position to unwind. As at the moment the BS will be receiving minimal capital repaqyments if any. As a lot of borrowers will be on interest only.