Friday, Nov 30, 2007
The BBC's own amateur buy-to-let landlords (turned amateur journalists) put in their collective bid to save their skins
BBC "News": Lenders plead for rate cut help
"Its members may feel that the challenges presented by the credit crisis in financial markets and the problems at Northern Rock mean that it is time to cut interest rates from their present level of 5.75%."
Dream on, dream on ...
Posted by paul @ 08:15 AM (1659 views) Add Comment
32 Comments
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1. Mr Plumbase said...
"Funding pressures have started to crystallise for a number of lenders". Should read, "chickens are coming home to roost".
Bring it on.
2. tick tock said...
The CML are starting to sound like a junkie in need of a fix....just a quick cut to take the edge off thats all...you're going to have to give IR methadone eventually anyway...so why wait?...We'll all be miserable if we have to wait..I can't take the pain ...just one last 0.5% hit you'll see...you wouldn't leave me like this would you Merv?
3. handle_it said...
"If that gap cannot be made up by lenders borrowing in the wholesale markets then the mortgage tap may be turned off."
Makes you wonder what goes thru these peoples minds.... Houses are too expensive ! But their solution is more "cash" more debt. How sad.
4. x blogger said...
I'm an FX trader and I can't wait for the new year. Rubbing my hands! This is my hedge against inflation.
Go Swissy. LOL... Forex is a great place to be right now IF you know how to trade.
I dont care what happens, just makes trading easier.
5. tyrellcorporation said...
x blogger, any others after Swissy? Yen? Yuan?
6. Ihopeitgoeswithabang said...
Interest rates are not high anyway. Its just that they were too low.
The problem for the CML and generally the Housing market full stop is that it is geared towards historically low and unsustainable IR levels.
Of course there is going to be pain while the situation corrects itself.
They should never have been lending ratios of 6x / 8x salaries and sub prime - then it would not have got so out of control.
It's their own fault let them suffer.
7. harold said...
"Lenders plead for rate cut help"
Never has the phrase "f**k off" been more appropriate.
8. japanese uncle said...
Presumably, speculative money escaping USD manages to support GBP right now. But when the true scale of the Great British property fiction is exposed to the light of day, those loose monies will not waste a minute lingering in this suddenly an extremely dangerous minefield, sending GBP to where God knows. Just a theory.
9. harold said...
The £ is pants, even with out a rate cut.
Thank God I switched my savings out of £s.
10. tyrellcorporation said...
Harold, out of interest (no pun intended), where did you put them?
11. x blogger said...
JU... Looking at my monthly MACD usd gbp pound will dive.
The market is setting this up already.. The market is always right!!!
The Great is Grot ....Oh dear.
12. speculatorone said...
harold, like tyrellcorporation I too would like to know where to put my cash.
13. talking rot said...
Savings accounts, ISAs and my few shares were ploughed into the yellow metal.
harold - would you recommend gold too?
14. talking rot said...
Oh sorry.
I should add that at an appropriate time (probably when gold is $1000 to $1150) I sell some and invest in oil companies and food [or farming] companies.
I don't know if anyone will agree with this strategy - would appreciate thoughts.
15. x blogger said...
Tyrellco LOL
16. Agentimmo said...
I've recently moved 90% of my money from the UK pounds to Euros. Got £1=1.45 a few months back. Given the fall since, it looks like a good strategy !
17. X Blogger said...
talking rot...... Gold could double that. Scale in as it goes up and out, when it comes down.
We will know when it reaches bubble status when the man and his dog is talking about it.
Much like property..
18. tick tock said...
I dont care what happens, just makes trading easier.
A perfect speculators illustration of how we got where we are today wouldn't you say?
Thank God its nearly over.
19. x blogger said...
talking rot..... Gold could double that!!
20. X Blogger said...
tick tock I dont create bubbles.
Think about your comments in future. I dont stock trade. :)
21. X Blogger said...
tick tock
I dont creat bubbles. think about your comments in future.
22. x blogger said...
tick tock
I dony create bubbles. I punish them.....:)
23. inbreda said...
My Fx is purchasing CHF and SGD and selling GBP and USD.
The former two are currencies are from 2 of the least indebted economies. A credit crunch should hurt them less.
To a lesser extent I have also bought Thai Baht, NOK and JPY (also some Euro after I heard a convincing argument that when the dollar is exposed it will cause a big temporary rush to EUR).
24. tick tock said...
x blogger
Predictably, you seem to have missed the point.
But thanks for the wisdom anyway :)
25. sold out said...
HELP please someone!!!!!
Like a lot of bloggers on this site i have STR and put my equity in savings,all with uk banks and building societies.I have spread the money around just after northern crock so that i have no more than 35grand in each account.Some of the monthly interest i get paid to my current account and it subsidises the rent i am paying.My plan is to continue to rent and save as much as i can and then probably buy a property in 2010 or 2011,when it hits rock bottom.
I start to worry when i read about inflation/stagflation and some of the comments of the people here with regard to where to put their money.
I have no idea about trading in stocks,shares( i was one of the suckers who bought last minite.com shares) currencies or gold.My speculating with regard to house prices was based on simple common sense and logic,and my own personal experience with the last HPC in 89 ( i was one of the suckers who bought a house in aug 88).
I know that a lot of you guys seem to be very knowledgeable about this stuff,can anyone help Please?
What for example would happen if i left my savings as they are, and we then expierenced stagflation? or mega inflation? HELP
26. x blogger said...
Tick tock
I get your point.
I was iust covering my GBP/ARS. lol
27. paul said...
x blogger, your advice is well appreciated here.
Think about house rules here though - if you're deemed to be pushing something you'll be dropped quicker than sterling after a rate cut.
28. cyril said...
sold out - I thought the £35 was the total of all your accounts so no point in spreading it about.
you can invest in foreign cash through people like fidelity.co.uk I think, but I have always wondered what happens if the company goes bust?
But if you put gold under the bed you might get burgled.
29. drewster said...
Talkingrot:
Gold: my bet is on gold rising to at least $1000 within six months.
Japan (Yen or Nikkei) looks pretty promising as the carry trade unwinds and Japanese savers decide to invest at home rather than investing abroad. I buy into a Japan ETF, so I get both the currency gain and the stockmarket gain.
The Euro has the size and stability necessary to become the new reserve currency. With 11 countries arguing over it, no decisive action will ever be taken and no sudden interventions are likely to affect it. This makes it remarkably safe for now. The same can't be said for most other currencies around the world.
Oil shares may not be such a good idea. The big oil companies are running out: north sea production peaked in 1999, production fell 10% in 2004 and a further 12% in 2005. Also oil extraction costs are rising pretty fast.
Food producers are a good idea, but it's hard to gain exposure. Farms generally aren't listed on stockmarkets. There was a recent MoneyWeek article about fishing stocks, those sound like an excellent idea as long as fish stocks don't collapse further. More research needed I think.
Remember, don't risk more than you can afford to lose!
30. happyrenterz said...
@sold out sounds like you have enough money to merit seeing a professional in these matters unless you are prepared to try learn a lot. Unlike most people here the thought of a crash dont leave me with a warm glowing happy feeling. But it is probably inevitable given the reckless amount of debt we Brits have. There will be a lot of suffering if that happens and no guarantee on what assets will hold their value. In my un-professional view things to consider instead of money in the bank are government inflation-indexed bonds, gold bullion kept in a vault (you would pay to keep it there), Gold ETF, other commodity ETF (people always have to eat) or some combination of all of these. I have never bought other currency as investment so I wont comment on that. Unlike money in the bank, buying or selling these investments costs money. Takes some getting used to.... But if you consider that the UK pound is currently over-valued then you are buying all these assets cheaply.
31. x blogger said...
Paul
It was just an intro. Voicing views.
Thanks for the warm welcome.
Is this site that clicky and hostile?. If so drop me. : )
32. Maihem said...
@ x blogger
Most of the people at this site never, ever post. So, no, the site isn't hostile. It's mostly live and let live.