Tuesday, Mar 13, 2007
The argument for decreasing interest rates
Telegraph: Contrarian whispers are talking rates down
An article in last Sunday's telegraph that assesses the state of the UK economy, with particular regard to interest rate. it also argues that Gordon Brown will leave the treasury with a massive headache when he leaves, as he hasn't managed to control his spending, which has increased out of proportion with the economy.
Posted by jellycaster @ 09:32 AM (201 views) Add Comment
7 Comments
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1. Steve said...
Yet, interestingly, the main reason potential vendors give for not putting their home on the market is "higher interest rates" – because most vendors are buyers, too. In other words, prices are rising because of the very mechanism – higher interest rates – which the Bank of England has been using to try to moderate house price inflation.
and
The great house price bubble has made fortunes for many homeowners, developers and investors
Are the two reasons why the BoE will not raise rates.
2. denzil said...
Don't know if anyone else caught it but Gordon Brown was on GMTV this morning touting "Green Issues".
He has obviously been indulging in some serious personality coaching as he seems to have developed a crazy fixed grin.
He looked like a man seriously enjoying insanity but what I found highly amusing was he was having a battle royal to avoid that revolting sneer he does but he lost and the sneer could not be hidden even through the insane grin. What tickled me was that as soon as he thought the interview was over the insane smile was replaced with the normal arrogant expressing but sadly the camera panned back to him.
3. Steve said...
I love the way the Telegraph tries to indicate that higher interest rates are actually going to cause property to rise in value.
4. tyrellcorporation said...
I just can't see this happening - wishful thinking I reckon on behalf of someone with an extensive property portfolio!
5. paul said...
Yeah, I can't really see where this is coming from. With high asset prices and high currency value why on earth would any sane central banker be lowering interest rates?
6. C'mon Correction said...
M4 money supply still going like a run away train - no way but up for base rates.
7. george monsoon said...
I agree with Tyrell, its another VI staring disaster in the face and shutting their eyes to reality.
average house at 200 grand. I remember a couple of years ago when houses were a mere 100 grand and the headlines said "unsustainable!".
It has to end pretty soon and I can feel the cleansing wave heading our way.