Lame ducks

macaque_2

Is this a coded reference to buy-to-let? After all, low interest rates hardly benefit normal small businesses who struggle to get any credit at all in the current climate.

HISTORICALLY low interest rates have delayed the rebalancing of the economy by keeping troubled firms afloat

This is certainly valid for BTLs who have high levels of debt and narrow margins. Some are not even staying solvent with base rates at 0.5%.

.......Bank official, Spencer Dale said Threadneedle Street’s stance could have “slowed the reallocation of capital and labour to more productive uses”.

Yup, they must be talking about BTL

http://www.cityam.com/latest-news/bank-low-rates-keep-dud-firms-life-support

tartanterra

No, it's not a coded reference to BTL. If the article was about BTL, then the words "buy to let" would appear somewhere in the article, but hey, keep up the conspiracy theory work.

As devastating as it may be to you, the MPC tend to talk about controlling inflation at their monthly meetings. The fact that you personally cannot afford a house is, bizarrely, not their priority.

In the future, house prices will rise or fall, inflation will increase or decrease, BTL will increase or decrease, interest rates will change. And none of it, absolutely none of it, will be affected by your individual circumstances.

You obviously feel that life isn't fair and you are correct in that assumption.

wotsthat

tartanterra wrote: »

No, it's not a coded reference to BTL. If the article was about BTL, then the words "buy to let" would appear somewhere in the article, but hey, keep up the conspiracy theory work.

Maybe it's bad luck to mention BTL in publications so journalists now say "troubled firms" as a proxy.

A bit like actors say the "Scottish play" instead of Macbeth.

tartanterra

wotsthat wrote: »

Maybe it's bad luck to mention BTL in publications so journalists now say "troubled firms" as a proxy.

A bit like actors say the "Scottish play" instead of Macbeth.

I see what you mean. Up till now, I have been completely unable to afford to buy a £2,000,000 pied-à-terre in Kensington.

Henceforth, I have decided that it is no longer "unable to afford". I will now refer to it as "priced out of the market":)

macaque_2

Thank you for this tartanterra. My comments below

No, it's not a coded reference to BTL. If the article was about BTL, then the words "buy to let" would appear somewhere in the article, but hey, keep up the
conspiracy theory work.

The subject relates to cheap credit going to unproductive businesses. What else can they be talking about other than BTL?
It also doesn't take a genius to work out why they don't spell it out. It is alrealy looking like some banks will need refinancing and BTL's are currently the most effective way of derisking their toxic property debt.

As devastating as it may be to you, the MPC tend to talk about controlling inflation at their monthly meetings.

Err wrong! The MPC's remit is 2% inflation which they could achieve by increasing interest rates. Interest rates have been at 1/2% for years despite a sustained and chronic overshoot on inflation.

The fact that you personally cannot afford a house is, bizarrely, not their priority

Since it is none of your business I will leave you guessing as to whether you are right or wrong on this one.

In the future, house prices will rise or fall, inflation will increase or decrease, BTL will increase or decrease, interest rates will change. And none of it, absolutely none of it, will be affected by your individual circumstances.
You obviously feel that life isn't fair and you are correct in that assumption.

There is nothing really to answer here. You are just venting spleen