0.25% cut in BoE base rate

adr0ck

!!!!!!? wrote: »

So you didn't actually want your question answered when you posted:

how do you work that one out?

in response to my post of:

Well, If you're one of the over-indebted, squealling blindly for interest rate cuts to save your bacon, then he kind of already is giving you cash to bail you out.

then?

Hopefully someone else actually interested in learning something read my points about inflation eroding savings to benefit the indebted and the banks.

( One useful thing about this little discourse: Proof that it really is a waste of time posting points for the HPI cheerleaders to debate. :rotfl:)

:rotfl::rotfl::rotfl::rotfl:

read my post...........................i'm not sqealing blindly for interest rate cuts

never was

adr0ck

i only posted on this thread !!!!!! because people like you were saying that £350 is not a lot of money and is similar to how i would perceive 2p to be

i'm simply asking because if this is the case then i would gratefully receive all kind donations from people such as yourself who are obviously so rich that you don't need to watch the hundreds of pounds let alone the pennies

WTF?_2

snarffie wrote: »

To be fair, the BOE were raising interest rates to blunt the out of control house prices, despite this not being within their mandate. It was possibly too late anyway.

They are now doing the reverse. It is still not exclusivley their mandate.

Yeah right. Strange how they waited until the last 8 months or so before deciding to 'blunt the out of control house prices' isn't it?

Their mandate is to target CPI - a highly fiddled figure designed to leave house price inflation out of the reckoning as well as to minimise the true level of inflation - and they only started to cautiously inch their rates up after years of stupidly low IRs after even the CPI started to get out of control.

That's because if anything they've went out of their way to facilitate rising house prices at the expense of general inflation control - you only have to see their actions in August 2005 for proof of that when they stalled a decline in HPI with a completely nonsensical interest rate cut. A monumentally stupid and short-sighted policy decision which many people who subsequently entered the housing market will be suffering the effects of very very soon.

Even the governor came out publicly and said he was against the cut.


But enjoy your interest rate relief at my expense if you are one of the lucky ones to get it (it's aimed more at helping the banks recapitalise but getting the heavily-in-debt, none-too-financially-clued-in public on side is undoubtedly a bonus for the government).

Personally, I'll now be looking for other avenues of investment for my substantial cash savings than the bank as it's clear which way this is all going to be going (the prudent being ripped off to bail out the reckless). If enough other savers think likewise it may turn out to be a somewhat pyrrhic victory for the UK banks.

WTF?_2

adr0ck wrote: »

:rotfl::rotfl::rotfl::rotfl:

read my post...........................i'm not sqealing blindly for interest rate cuts

never was

I did read your post.

You asked me why I said that savers had already paid to bail the borrowers out.

I then put up a short post summarising the effects of inflation on savings and interest rates.

As I suspected, a bit pointless to bother posting stuff like facts.

adr0ck

!!!!!!? wrote: »

I did read your post.

You asked me why I said that savers had already paid to bail the borrowers out.

I then put up a short post summarising the effects of inflation on savings and interest rates.

As I suspected, a bit pointless to bother posting stuff like facts.

!!!!!! i asked you how you worked out i was "one of the over-indebted, squealling blindly for interest rate cuts to"

but please feel free to ignore what i actually write - which you have always done :rolleyes:

with regards to savers bailing borrowers out...........thats always been the case (isn't that how it works?)

i'm assuming Gordon's more worried about recession than a few savers

but anyway why would you care when your so filthy rich

WTF?_2

adr0ck wrote: »

!!!!!! i asked you how you worked out i was "one of the over-indebted, squealling blindly for interest rate cuts to"

but please feel free to ignore what i actually write - which you have always done :rolleyes:

with regards to savers bailing borrowers out...........thats always been the case (isn't that how it works?)

i'm assuming Gordon's more worried about recession than a few savers

but anyway why would you care when your so filthy rich

The actual sequence of quotes:

You:
wheres almacs comments gone?
i take it he doesnt want to give me £350
and i thought it was so a small amount of money to him
Me:
Well, If you're one of the over-indebted, squealling blindly for interest rate cuts to
save your bacon, then he kind of already is giving you cash to bail you out.
(As indeed is everyone with savings or not in debt)
You:
how do you work that one out?


People can decide for themselves what you were actually getting at.

m00m00

and yet another thread descends into internecine squabbling.

WTF?_2

m00m00 wrote: »

and yet another thread descends into internecine squabbling.

It's almost like there are a number of posters in this group not interested in actually debating the issues around the coming drops in house prices but instead intent on reducing everything to name calling to sabotage any talk of falling prices. :think:

I'll be careful not to get drawn into debate with the 'wreckers' in future. I think there were some useful points made about inflation and interest rates anyway.

EdInvestor

I'm really starting to feel sorry for all these preople who desperately want a house price crash.

*First mortgage interest rates go up, so it will cost them a lot more to buy

*Then LTVs go up, so they have to save much more for their deposit

*Then savings interest rates start coming down, which means inflation will rise, so their living costs go up

*.... and they get less interest on their savings so it's harder to gtet a deposit together

They just can't win, it seems. :rotfl:

brit1234

EdInvestor wrote: »

I'm really starting to feel sorry for all these preople who desperately want a house price crash.

*First mortgage interest rates go up, so it will cost them a lot more to buy

*Then LTVs go up, so they have to save much more for their deposit

*Then savings interest rates start coming down, which means inflation will rise, so their living costs go up

*.... and they get less interest on their savings so it's harder to gtet a deposit together

They just can't win, it seems. :rotfl:

Mr Edinvestor

Some of us have been saving large deposits for years. It not a case either of desperately wanting a house price crash because the the financial conditions were set for it to occur anyway.

The banks want our money so much that I am getting very good interest on my deposit (£150 a month).

Its all the conditions above which you have listed which is going to bring prices down 35-50% in the next two years.:beer::D