Friday, Dec 07, 2007
Experts warned that it was a sign that the credit crisis could escalate over the Christmas period,
Telegraph: Market fears that Bank has 'lost control'
even though the Bank has now embarked on a major series of interest rate cuts for the first time in almost eight years.
It coincided with a chilling warning from the Organisation for Economic Co-operation and Development that the UK economy is heading for a major slowdown next year - and possibly a "significant slump" in house prices
Posted by chris @ 03:31 AM (443 views) Add Comment
10 Comments
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1. Davros said...
It seems the BOE's cut is largely irrelevant.
2. Dohousescrashinthewoods said...
"major"? "series"? Who said anything about that? Is the Tgraph pre-empting? Or pushing its agenda?
3. George Monsoon said...
" the Bank has now embarked on a major series of interest rate cuts for the first time in almost eight years."
a major series of cuts?? correct me if I am wrong, but I am still finding this cut a bitter pill to swallow, although not surprising, given the pressure from the government to throw the MEWers a lifeline over Christmas.
I don't expect that this cut will generate further cuts, in fact, I can only assume that we will get at least two increases very quickly in the new year to counter inflation...
Anyone else?
4. waitingfor hpc said...
Good - and I hope that the BOE pays dearly for this and other mistakes.
5. stillthinking said...
The individual banks are behaving rationally but in a way that adds up to deflation.
Deflation in the newspapers.
6. Si said...
"...the bank has now embarked on a major series of rate cuts..."
Has it? I suppose it's likely, but is it really that certain?!
7. M2 said...
They're pushing on a string. If this was the Wizard of Oz, it's the bit where the curtain has just been pulled back...
8. Totallyfedup said...
It so unfair that those amongst us who have managed our finances and not borrowed more than we can afford seem to be being penalised for being prudent. I was going to buy in 2003 but watched helplessly as the property market spiralled into oblivion. Trouble is its gone up by 200% and at an average 4% per year that increase should only have been about 40%. Can it really go down to a more affordable level which will mean losing 100% on most first time buys.. (180k down to an affordable 90k)
Will I ever be able to afford to own a home!!!!!!
9. wiltshire said...
Totallyfedup - I think this will be a future problem for this government. The way debt is discussed in the media you'd think we're all in debt but there are plenty of prudent people who live within their means in this country (witness all those queueing outside NR a few months ago). If the government are going to try and save the housing market then they're going to clearly indicate that prudent financial planning, saving, trust in banks etc is worthless. Maybe it is and this is just the final confirmation that we're about to witness......
10. shipbuilder said...
If you have an economy run on debt, of course the prudent will be penalised - business and government wants us to spend,spend, spend, not save. As long as the last drop is not wrung out on their watch, they're OK. It's this short-termism and greed that eventually will see the downfall of our unsustainable economic system. I can even see a subtle media turn towards ridiculing savers and the prudent. We already see it directed towards those with distaste for mindless consumerism - 'mugs', 'foil hatters', 'luddites', 'hippies', 'lefties' etc. etc.