BoE slashes interest rates by 1.5%

[phykell]

Originally Posted by Admiral Huddy

Is it? You sure it's not the greed of the consumer too?

Yes

http://www.boat-drinks.co.uk/showthread.php?t=9550

[Admiral Huddy]

You are correct but rates have been low for years now and the situation is very much unlike the last recession, where we had escalating inflation which had to be curbed by high interest rates. This is just a stop caused by lack of confidence.

[dirtydog]

Originally Posted by A Place of Light

No, the tories managed ALL of those recent recessions all by themselves

That is why Brown gave control of rates to the central bank isn't it - so that (in theory) they would never again be influenced by political reasons. ie. Tory chancellors cutting rates before an election to create a feelgood factor, or declining to raise rates near an election even if economic conditions demanded that they did.

[phykell]

There's an interesting programme on BBC1 tonight at 19:30 I think - "Credit Crash Britain".

[Admiral Huddy]

Originally Posted by phykell

Yes

http://www.boat-drinks.co.uk/showthread.php?t=9550

I still disagree.

I'm not saying that banks are faultless, but the consumer also has played a part in this.. Demanding higher prices for house sales, consumer greed, the wanting to borrow borrow borrow.. Credit card usage has spired out of control as people spend beyond their means. Now the banks are at fault for not regulating the amount of lending but then people are at fault for the demand in first place. The sad thing is, this happens every ten years or so and we never learn.

[A Place of Light]

Originally Posted by Admiral Huddy

I still disagree.

I'm not saying that banks are faultless, but the consumer also has played a part in this.. Demanding higher prices for house sales, consumer greed, the wanting to borrow borrow borrow.. Credit card usage has spired out of control as people spend beyond their means. Now the banks are at fault for not regulating the amount of lending but then people are at fault for the demand in first place. The sad thing is, this happens every ten years or so and we never learn.

The house price situation has far more to do with supply and demand economics than it has with the consumer/public.

[phykell]

Originally Posted by Admiral Huddy

I still disagree.

I'm not saying that banks are faultless, but the consumer also has played a part in this.. Demanding higher prices for house sales, consumer greed, the wanting to borrow borrow borrow.. Credit card usage has spired out of control as people spend beyond their means. Now the banks are at fault for not regulating the amount of lending but then people are at fault for the demand in first place. The sad thing is, this happens every ten years or so and we never learn.

Hey, I completely agree with you and I've harped on about this for years now but it has to be said that the banks were supposedly the ones in control of the money. Even bankers themselves agree that banks were negligent in terms of who they allowed to borrow from them. You only have to compare the way HSBC grants loans to the likes of RBS to understand that - I was only speaking to an HSBC person about this yesterday so there may be some bias admittedly

I think you missed what I wrote:

"Make no mistake, all you people who believe your disposable income can be measured by the maximum amount you can afford to repay on your credit card are just as much to blame as the banks or anyone else. It took two to tango, and as much as they wanted to lend, you wanted to borrow."

[Von Smallhausen]

Originally Posted by A Place of Light

No, the tories managed ALL of those recent recessions all by themselves

And Labour's handling of previous economies was any better ?

[A Place of Light]

Originally Posted by Von Smallhausen

And Labour's handling of previous economies was any better ?

Better, but not good, no.
Didn't the tories manage three recessions in ten years?
That's good going by anyones standards.

[Pheebs]

NooOOooo we're on a fixed rate darnit!! DARNIT!!

Boo!!