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TheCountOfNowhere

Good News, Rate Rise Postponed

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...says itv news.

no mention of savers of course.

I really can't believe people are falling for this banker fraud.

let's face it they were never going to raise rates and any excuse will do.

we small are a bunch of gullible $$$$s in the UK.

I've stopped watching the BBC propaganda channel, I'll add itv to the list now.

Edited by TheCountOfNowhere

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KB is right tho. In the event of a persistent debt deflationary environment, irrespective of low IRs, the long term trajectory for real house prices is for very deep falls, in the long term

Edited by Si1

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It's all very reminiscent of Black Wednesday in 1992 when Chancellor Lamont made promises on interest rates that were broken the very same day.


http://

news.bbc.co.uk/onthisday/hi/dates/stories/september/16/newsid_2519000/2519013.stm

Chancellor Norman Lamont raised interest rates from 10% to 12%, then to 15%, and authorised the spending of billions of pounds to buy up the sterling being frantically sold on the currency markets.

But the measures failed to prevent the pound falling lower than its minimum level in the ERM.

The second rise in the interest rate was reversed by the beleaguered chancellor soon after the withdrawal from the ERM, setting it at 12%.

The move is a dramatic U-turn in government policy, as only last week Prime Minister John Major reaffirmed the government's commitment to remaining within the mechanism.

Mr Lamont admitted it had been an extremely difficult and turbulent day, but a Downing Street spokesman said he would not resign.

The shadow chancellor, Gordon Brown, said colossal errors of judgement by the prime minister and chancellor had betrayed the British people.

Brown on "colossal errors of judgement" :lol:He was correct of course but even so it didn't stop him when he was Chancellor and PM :lol:

As for the government betraying the British people well the British people especially the young ones certainly know about that in years up to 2015.

Currently there are more colossal errors of judgment being made by the Central Banks and governments along with the hundreds of billions/multi-trillions being wasted suppressing interest rates at this point in time. If oil heads towards the $20 level and looks like being at that level for some time then just wait for the massive U-turns on economic policy.

Edited by billybong

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Come on guys lets put this in perspective and be honest with ourselves, any rate rise would have been what 0.25%? Hardly going to make a difference to cash savings rates.

The truth is we are disappointed the powers that be were not stupid enough to commit financial suicide Armageddon destruction. Well I am anyway.

0.25% increase would probably cause a financial reset with the amount of debt there is globally now. Cash isn't worth anything if that happens.

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Come on guys lets put this in perspective and be honest with ourselves, any rate rise would have been what 0.25%? Hardly going to make a difference to cash savings rates.

The truth is we are disappointed the powers that be were not stupid enough to commit financial suicide Armageddon destruction. Well I am anyway.

0.25% increase would probably cause a financial reset with the amount of debt there is globally now. Cash isn't worth anything if that happens.

whats with all the new posters talking absolute #### this week?

have they all come to tell us we were right?

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whats with all the new posters talking absolute #### this week?

have they all come to tell us we were right?

Wait were you expecting a 0.5% rise? That would have been even better at f*cking everything up I will give you that.

Still would not make much difference to savings though.

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What i don't understand us why something which is subjective such as the price of a stock, which even with falls is somewhat still historically overvalued warrants the government acting to support it.

Same with houses here

Its a joke if they where yielding 10% someone would buy them.

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KB is right tho. In the event of a persistent debt deflationary environment, irrespective of low IRs, the long term trajectory for real house prices is for very deep falls, in the long term

Yep. Personally I think anyone who's bought property in the UK in the last 10 years is a....a bit foolish to say the least (no apologies if you are reading this and are in this cohort) - you WAY overpaid for your property regardless of IRs. Low IRs are here to stay, but that just means your property value is going to leak away from a very high top that you entered the market at. Japan has set the precedent for this. Lending rates can only go so low for banks to make money. When sales volumes remain low (as they have been for the last 7 years), then there's nowhere for prices to go but down.

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Chill.

Any comments of this type are akin to any of us setting sail from the UK on a new yacht having previously stated the exact time it will take to reach New York.

This is without any previous sailing experience, knowing there is a massive storm somewhere over the horizon.

They are just flapping their gums trying to maintain the illusion that they know what they are doing.

Its better than saying nothing in their view.

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Chill.

Any comments of this type are akin to any of us setting sail from the UK on a new yacht having previously stated the exact time it will take to reach New York.

This is without any previous sailing experience, knowing there is a massive storm somewhere over the horizon.

They are just flapping their gums trying to maintain the illusion that they know what they are doing.

Its better than saying nothing in their view.

Every month they pretend they have the option to raise rates. They don't. The pretending is the point of it all - to pretend they are in control.

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Every month they pretend they have the option to raise rates. They don't. The pretending is the point of it all - to pretend they are in control.

Why do you believe they don't have the option?

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Why do you believe they don't have the option?

Because if they had the option, it would have been used a long time ago. ZIRP is supposed to be an emergency measure. Pretending they have a choice is simply about trying to instill confidence. Same as repeating the lie that "we're in a recovery".

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Unless China begins selling Treasuries, or others Gilts, forcing interest rate rises?

Where a point is realised that QE as a cure, is worse than disease. HPC/deep recession for shakeout, and fresh debt to get lending velocity up.

One could just as well say that "government has the power to prevent you from dying of cancer." It can. By taking you out and shooting you first. But the cure in that case, like the printing-press cure for deflation, is worse than the disease.

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This persistent low rate environment is seriously trashing pensions. All those 40somethings in DC pension schemes (most now I would imagine) may crow at low mortgage payments now but they'll be singing a different tune when they get their pension projections. I imagine that would also include Sky news presenters.

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Yep. Personally I think anyone who's bought property in the UK in the last 10 years is a....a bit foolish to say the least (no apologies if you are reading this and are in this cohort) - you WAY overpaid for your property regardless of IRs.

Nonsense. We bought a nice end of terrace 2 bedroom house, in a nice area, for £80,000 with a 25% deposit. Our mortgage interest rate is 2.49% + boe base rate. We bought the house in January 2013. Our mortgage is £246 per month. Our aim is to be mortgage free within 10 years.

We bought the house from a guy who paid £106,000 for it four years earlier.

Ridiculously high house prices are just an English problem now.

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Because if they had the option, it would have been used a long time ago. ZIRP is supposed to be an emergency measure. Pretending they have a choice is simply about trying to instill confidence. Same as repeating the lie that "we're in a recovery".

So in your opinion, if they were to slightly tighten within the next few months.... what will happen?

The base rate is just one tool. They have tightened since the crisis; many people said the same thing about them never tapering QE.

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