Originally Posted by TelBoy
(Post 8321832)
If money in the bank is too risky now, then i'm Father Christmas. Of course it isn't.
I said it tongue in Cheek !!!!!!!!! :Whatever_ |
I suppose Banks wont want to lend as the rates drop due to getting less return on their/our money .
Just a thought . |
We pay to bail the banks out, they give us cr4p interest on our savings. Brilliant.
I did a very rough calculation of what higher end UK savers have (based on the number with over £35k and the number with over £50k) and it was £25 TRILLION. Surely that's a lot of political clout "we" have? Seems not. Still, at least we can all buy a knighthood if we fancy one. |
I expect at least a 1% cut - but Sterling is just utterly screwed now :mad:
Rates will probably hit 0% next year IMO. I don't see this getting the economy moving at all. Banks still wont be lending as a) they've got no money to lend, and b) lending risks are up massively due to widespread job losses and failing businesses. Thanks Brown, for a 10 year debt-fueled boom which has left us with the most screwed economy in the Western world :mad: |
This will probably see us join the Euro. Might not happen in the next 12 months but I can see it coming. IMHO.
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They wont have us at this rate !
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What was it Flash used to say .... "No more boom and bust"?
Things are looking decidedly busted right now :eek: |
just bust !
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Who buys the claim of Bank Independance?
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Independant in good times.... leaned on perhaps during bad?
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The credit default swap rate for the UK (the probability that the Government won't be able to pay its foreign debt) is now higher than Spain and Portugal, amongst others. And that, ladies and gentlement, is almost unbelievable.
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Nearly there, just want to know what it is now.
HMRC have just announced 3400 job losses. Unemployment is going skywards :( Hope all these affected with redundancy get the rate cuts passed on to them to help ease Christmas. |
My renewal of 5.24 Fixed for 5 years in Jan 07 is starting to look cr@p now!!
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Originally Posted by TelBoy
(Post 8321673)
100bps from the Bank of England, outside chance 150bps.
50bps from the European Central Bank, outside chance 75bps. One down, one to go. |
Confirmed - down to 2%
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All signs point towards a further cut in the new year too...
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Will house prices stabalise now?
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Yes indeed .This kiddies happy !!!!!!!!
They will be paying me for having a mortgage soon !!!!!!!!!!!!!!!!!!!!:luxhello: |
Originally Posted by T4molie
(Post 8322137)
My renewal of 5.24 Fixed for 5 years in Jan 07 is starting to look cr@p now!!
Still think things will go daft interest wise in a couple of years. We have moved from the sublime to the ridiculous.I reckon this is the worst bust out of booms and busts in a looooong time. |
Originally Posted by shamrock
(Post 8322179)
Will house prices stabalise now?
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Originally Posted by Matteeboy
(Post 8322195)
No.They'll fall at least 30% more in the next two years.
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Originally Posted by T4molie
(Post 8322199)
If that's true then I can't see why anybody would want to buy now then!!
Originally Posted by njkmrs
Yes indeed .This kiddies happy !!!!!!!!
Remember most banks won't reduce tracker rates under 3% anyway, and also next year when we have deflation your mortgage is essentially getting bigger. The rate of unemployment is also going to be massively higher, and I expect a lot of people will be getting asked to take pay cuts. |
Reuters has just used the word 'Depression'.
Hmmm |
Originally Posted by lozgti
(Post 8322233)
Reuters has just used the word 'Depression'.
Hmmm Holy cr4p!! |
That's pretty short-sighted mate - do you not stop to wonder why rates have fallen 2.5% in the last 2 months? The economy is utterly utterly screwed.
Remember most banks won't reduce tracker rates under 3% anyway, and also next year when we have deflation your mortgage is essentially getting bigger. The rate of unemployment is also going to be massively higher, and I expect a lot of people will be getting asked to take pay cuts.[/QUOTE] I will worry about that next year Pal .!!!!! If /when it happens . Thankyou .:thumb: |
Originally Posted by lozgti
(Post 8322233)
Reuters has just used the word 'Depression'.
Hmmm And it isn't the first time either. The good thing, if there is such a thing in this environment, is that the Governments are doing WAY more than they ever have done before, and like all things, there will be a point at which people say "hang on, this is too cheap to miss" and we'll have a turnaround, but that is so far over the horizon right now it's not even worth considering. |
So help me out here?
Interest rate cuts mean the banks don't have to pay so much money to those with savings. Most mortgage owners are not getting the new rates, neither can they change and get them. So the banks that we own, make more money? |
Not really, Dave, no, because banks can't actually get money that cheap. But if mortgages are capped at 3% then it will be about flat to them now after this rate cut. It's the savers who will get hammered hardest, and obviously the Government wants them to go out and spend their cash rather than hold onto it for zero return.
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...and drop everyone in even more doggy doings.
More short sighted than a mole with a welding mask on. |
Interbank lending rates are very high, so banks will still be offering decent returns to savers who shop around. You can still open an account with the AA paying 6.28% on instant access savings (although I dont doubt this will be cut)
The 'official' Band of England rate is almost detached from the 'real' market rate now. davyboy, remember the average person is massively in debt now, and with unemployment skyrocking what do you think will happen? Massive numbers will be defaulting on their debts, and many going bankrupt. This means the amount of 'bad debts' banks will have to write off will be crippling and will without doubt result in more banks failures... |
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