Comments on: Interest rates cut at last

By: Jonathan Bryce

Jonathan Bryce — Thu, 09 Oct 2008 23:22:56 +0000

It's not clear what difference, if any, this rate change has made to the actual interest rates people pay and receive.

The three month rate, which is the most important rate, has been rising steadily over the past few weeks. It is still rising.

The overnight rate has been all over the place for the last few weeks, and it is still all over the place. Before then, it tracked the base rate to within a margin of about 0.1%.

I'm not convinced that the Bank of England can control interest rates any more any more than the Treasury was able to control exchange rates post White Wednesday.

It probably would be nice if interest rates were lower, but then again, it would be nice if oil cost $20 per barrel. I don't think the government can make either of those things happen.

By: Stuart Fairney

Stuart Fairney — Thu, 09 Oct 2008 16:01:42 +0000

Leave it to the left to think that the start of a nasty recession, when illiquidity is a major problem is just the time to think up another clever wheeze to tax someone. And think about the implementation of the same. Land without planning is worth very little. Land with planninng is almost always developed quickly (trust me on this one). So do we tax someone on the development potential of land that the local council has no intention of permitting? Hardly the fairness sought by the author of the suggestion.

And I'm not sure how effectively devaluing land further via additional taxation in a falling market would make bankers think "well that's a relief, let's start lending again"

By: Stuart Fairney

Stuart Fairney — Thu, 09 Oct 2008 08:44:30 +0000

With LIBOR bearing no relation to the base rate, doesn't that make the MPC a few redundant people sitting in a room?

Is there any point in a centrally controlled base rate any more?

By: Gordon Riby

Gordon Riby — Wed, 08 Oct 2008 23:01:39 +0000

I wonder when the government will start to print money?

By: APL

APL — Wed, 08 Oct 2008 22:40:59 +0000

JR: "The Uk Stock market plunged another 3.6% .."

No one seem to be making the connection between the stock market plunge and the absence of shorts in the market.

Gordon & Darling, a sort of perverted Laural & Hardy. No offence to those two greats, they were funny.

By: Ian McCord

Ian McCord — Wed, 08 Oct 2008 21:53:31 +0000

Today the FTSE closed at 4436.7
On 1st May 1997 it closed at 4445

So we have come back to the FTSE with the same value as when Mr Brown took control of the economy.

need we say more

By: Matthew Reynolds

Matthew Reynolds — Wed, 08 Oct 2008 21:10:48 +0000

The Lib Dem's are right – let us see interest rates down to 2% so that a major depression can be averted ! Deflation is the growing & present danger that Central Banks and politicians need to head off . What is the Tory position on saving us from disaster ?

By: haddock

haddock — Wed, 08 Oct 2008 21:07:01 +0000

Economy in free fall because of banks' irresponsible lending to people who cannot pay…..

solution….. to irresponsibly lend billions to the banks, who have no money, and cannot pay.

Absolutely bloody inspired ! Yeah, that will work !

By: DBC Reed

DBC Reed — Wed, 08 Oct 2008 17:43:42 +0000

Lower interest rates may make the punters want to borrow more
but it won't make the banks want to lend more, which remains the problem.
Polly Toynbee called for LVT to prevent further property bubbles in her much discussed piece in the Guardian yesterday(7th 0ct). If LVT does counter property bubbles ( and UK experience with the similar schedule A of Income Tax in the 50's and 60's shows that it does) would n't introducing it now give timid bankers the confidence to,at least, renew mortgage lending?

By: mikestallard

mikestallard — Wed, 08 Oct 2008 16:22:35 +0000

I am in the same position as Mike Kingscott's Mum.
So I have written a little poem which I would like to share with you.

The Iron Chancellor: a sonnet.

[The original Iron Chancellor was, of course, Otto von Bismarck, who founded the Second Reich and unified Germany, making her one of the greatest states in the late nineteenth century world.]

“The Iron Chancellor,” you said,
“Is what I plan to be,
“With Prudence as my handmaid,
“Your money’s safe with me.”

And then, with trust established,
You spent our hard earned cash,
Until, your pocket empty,
The Banks began to crash.

And now, in times of trouble,
You scrabble round the floor
Searching for extra pennies,
Yet promise billions more.

A nail-biting, silly Scot,
Otto von Bismarck you are not.