Carney guarantees low rates on breakfast tele

chewmylegoff

The government owns the BoE. The stupid Internet rumour that it is owned by a shadowy organisation and/or shapeshifting lizards is a stupid Internet rumour.

Generali

purch wrote: »

Well I am allowed to know who owns it.

H.M. Government.

You would need to be a complete moron not to know who owns the Bank of England.

chewmylegoff wrote: »

The government owns the BoE. The stupid Internet rumour that it is owned by a shadowy organisation and/or shapeshifting lizards is a stupid Internet rumour.

Hopefully that problem is now cleared up.

Next!

OffGridLiving

Fella wrote: »

"Savers to pay the mortgages of all those people who bought a house they can't afford, for at least the next three years".

Well, that'd be the honest headline (although there will be plenty of VIs & morons who rush to argue, including on this thread no doubt).

It might be remembered that the bank bailouts were to prevent savers losing their savings, even those who banked in overseas accounts such as Icesave, etc. It was nothing to do with UK morgages.

There may well be a 'rush to argue', primarily because your honest headline was anything but.

Fella

Those would be the bank bailouts caused by subprime would they? I.e. caused by people taking our mortgages they couldn't afford.

No bank has ever gone bust & required bailing out because of people saving.


The way some people try to deflect any of the blame for the financial crisis onto savers "requiring bailouts" is ludicrous & laughable.

Fella

chewmylegoff wrote: »

No he didn't, he gave three scenarios where the guidance on unemployment vs. interest rates could cease to apply, the first of which was if BOE projections suggested CPI was likely to be above 2.5% in 12-24 months time (on a rolling basis) and the second of which was if "medium term" inflation does not appear to be "sufficiently well anchored" (I.e. so woolly as to be meaningless).

Basically he was just signalling that the bank will not raise rates until it has to which is hardly news.

Not sure if you're disagreeing with me (first paragraph) or agreeing (second paragraph).


Regardless of how he dressed it up, as I said before his message was loud and clear. From now on the bank will not even pretend that it's remit is to control inflation. Ultra-low IRs are here until or unless there is no alternative but to raise them.


In practical terms, it means he won't have to bother writing that letter each month & making up a Mervyn King-esque excuse why rates must be kept low.


BTW lol at the "if BOE projections suggested CPI was likely to be above 2.5% in 12-24 months time (on a rolling basis)" part. I won't lose any sleep waiting for the MPC to project that....

Generali

Fella wrote: »

No bank has ever gone bust & required bailing out because of people saving.

No but they always have done because people wanted their money back.

If you keep your money in a safe deposit box or under the mattress you take little risk and get no interest as a result. If you lend money to a bank you take a risk and are compensated for that.

The idea that this compensation should be legislated for is risible IMHO.

wotsthat

Fella wrote: »

Those would be the bank bailouts caused by subprime would they? I.e. caused by people taking our mortgages they couldn't afford.

Makes you wonder why savers allowed their money to be lent to such unsuitable risks.

Probably because they could get a decent return when things were ok and demand that the taxpayer pick up the tab when it went tits up.

CLAPTON

wotsthat wrote: »

Makes you wonder why savers allowed their money to be lent to such unsuitable risks.

Probably because they could get a decent return when things were ok and demand that the taxpayer pick up the tab when it went tits up.

I'm very very impressed that pre 2007 you realised that RBS, HBOS Dumfermline BS, B&B, Northern Rock and a few other banks were 'high risk' institutions.

I sadly have to confess that like many millions of people, I had no idea they were taking these risks and my few bob was vulnerable.

For the record could you tell us which banks /BSs should be avoided now?

ILW

chewmylegoff wrote: »

The government owns the BoE. The stupid Internet rumour that it is owned by a shadowy organisation and/or shapeshifting lizards is a stupid Internet rumour.

If you rearrange the letter of BoE you get EOB. Surely that must make anyone suspicious.

Conrad

Fella wrote: »

Ultra-low IRs are here until or unless there is no alternative but to raise them.


..

Savers have plenty of alternatives so this endless whining by them really is a bit pathetic. No one has some divine right to an income stream.