Negative interest rates

Pincher

The concept of homeless money is really funny.


I can't afford the rent, a stack of EURO notes wails.


If I had ten million Swiss Francs, it looks like I really need to buy some Rembrandts.


I still haven't got my mind around the idea of diamonds.
What's the point of buying something for £2,000, and then they only offer you £1,000 when you want to sell? Is there anywhere you can go that is not going to rip you off buying and selling?

Glen_Clark

MDMD wrote: »

I would be very surprised if they did go negative. Despite the 'independence' of the BOE, the government would be terrified of a run on the entire banking sector so they would put immense pressure on the BOE to keep them positive. Even if a lot of bank accounts wouldn't be negative without a large fall, the speculation would be enough to cause panic.

You've got to laugh haven't you. We are asked to believe Carnage is 'independant' of Gideon who put the cushy overpaid job his way. :rotfl:
David and Gideon are well connected with the aristocracy, and govern in their interest, which means keeping property prices high. In fact their idea of a housing crisis is not what we have now, but what we would have if interest rates rose, and over leveraged BTL landlords all tried to sell their houses at once - resulting in a fall in house prices.
To that end they will keep interest rates as low as they can for as long as they can. They would probably like negative interest rates to push up property prices further.
But after all the money Gideon has borrowed for his obsessive housing market interventions, Britain's credit rating will not withstand negative interest rates.

Thrugelmir

Glen_Clark wrote: »

You've got to laugh haven't you. We are asked to believe Carnage is 'independant' of Gideon who put the cushy overpaid job his way. :rotfl:
David and Gideon are well connected with the aristocracy, and govern in their interest, which means keeping property prices high. In fact their idea of a housing crisis is not what we have now, but what we would have if interest rates rose, and over leveraged BTL landlords all tried to sell their houses at once - resulting in a fall in house prices.
To that end they will keep interest rates as low as they can for as long as they can. They would probably like negative interest rates to push up property prices further.
But after all the money Gideon has borrowed for his obsessive housing market interventions, Britain's credit rating will not withstand negative interest rates.

Such garbage highlights the complete mess that a financial journalist made of managing the the UK economy over 13 years. History says that it takes twice as long to unravel as create. By reckoning that's around 2036. :eek::eek:

In 5 years barely scrapped the surface.

Glen_Clark

I go by what politicians DO, not what they say.
What David and Gideon does favours the old money hereditary inherited wealth aristocracy they are close to. Rather than the free enterprise productive workers they claim to support. So they have made inherited land ownership more profitable than the productive industry Britain needs - to pay back the money Gideon has borrowed to inflate property prices with his obsessive housing market interventions..
People on here groan when you talk about politics, but the subject of this thread is inseparable from politics.