US raises key interest rate by 0.25% - merged

[rollover]

18 minutes ago, frederico said:

The UK has to follow the US eventually,otherwise in their tiny little minds they lose face.

Tbh we're not hearing much about bad US banks, so relatively the UK is a complete basket case.

Wells Fargo Becomes First Bank To Face Sanctions For Failing Too-Big-To-Fail Test

The Federal Deposit Insurance Corporation said Tuesday that the bank now faces sanctions for failing to show it could go out of business in an orderly way. This is the first time that a bank has faced penalties under the post-economic crisis system, which was set up to ensure that banks can fail without needing government bailouts. The punishment comes after regulators rejected the living wills of Wells Fargo and four other big U.S. bank in April. The banks all submitted their proposals, but only Wells failed to pass despite being given a second try.  huffingtonpost

[stormymonday_2011]

57 minutes ago, GreenDevil said:

Nah.

However UK bonds less attractive will force increasing mortgage costs behind the scenes.

The cost of funding new UK mortgages in the money markets is going to rise regardless of what Carney and the BOE do. They are not going to be able to dodge this particular bullet. 

[billybong]

The longer Carney delays the more it demonstrates how wrecked the economy is.  For sure he'll try to blame it on the Leave the eu vote.

To think that not so many years ago some British politicans had the gall to tell the US that they should follow Britain's example in how to run an economy.

Edited December 14, 2016 by billybong

[Sancho Panza]

1 hour ago, kidgorgeous said:

Would BOE be forced to raise at some point if say the fed raised to over 1%? 

If it pushes up commodity prices versus sterling.

[Sancho Panza]

10 minutes ago, billybong said:

The longer Carney delays the more it demonstrates how wrecked the economy is.  For sure he'll try to blame it on the Leave the eu vote.

To think that not so many years ago some British politicans had the gall to tell the US that they should follow Britain's example in how to run an economy.

He will blame Brexit,you're right on that score.Won't be his fault for destroying the velocity of money.

[billybong]

13 minutes ago, Sancho Panza said:

He will blame Brexit,you're right on that score.Won't be his fault for destroying the velocity of money.

That would be in large part the central banking system as a whole of which he is an central and main member so he has to take his fair share of the blame.  He's not entirely to blame for the state of the British economy - that goes back decades under various BoE governors and under various governments - but in his time he's done little or nothing to remedy it.

Edited December 14, 2016 by billybong

[zugzwang]

3 minutes ago, Sancho Panza said:

If it pushes up commodity prices versus sterling.

Commodity prices are already soaring versus sterling.

http://news.morningstar.com/articlenet/article.aspx?id=784735

Quote

Mined commodities and mining stocks have seen massive gains in 2016. The coking coal price has quadrupled, iron ore and thermal coal have doubled, and copper is up about 35% this year. Demand exceeded expectations thanks to China’s debt-fueled fiscal stimulus. With approximately 80% of China’s steel used for investment-oriented activity, steel demand is particularly sensitive to China’s fiscal stimulus. China’s leading share of commodity consumption means that relatively small changes in demand have outsize impacts on global markets. Markets also experienced short-term supply constraints, including weather-related disruptions in Australia, the Samarco failure, and China’s 276-day rule for domestic coal mines.

 

[TheCountOfNowhere]

1 hour ago, kidgorgeous said:

i get what you are saying but  does Carney care if sterling comes under pressure? Does he care if inflation was over 5%?. 

Who's got a grah of UK versus us interest rates since 1950?

[TheCountOfNowhere]

The UK is a u.s. territory in all but name. The u.s. own us. They raise e raise

 

[SavingBear]

2 minutes ago, TheCountOfNowhere said:

The UK is a u.s. territory in all but name. The u.s. own us. They raise e raise

 

I have to agree, the question is, what will the lag between the US and the UK be? 

1 month?.... 2month ?..3?  6? a Year!?

[TheCountOfNowhere]

55 minutes ago, stormymonday_2011 said:

The cost of funding new UK mortgages in the money markets is going to rise regardless of what Carney and the BOE do. They are not going to be able to dodge this particular bullet. 

Mortgage rates rising = house prices collapsing.

 

 

[TheCountOfNowhere]

Just now, SavingBear said:

I have to agree, the question is, what will the lag between the US and the UK be? 

1 month?.... 2month ?..3?  6? a Year!?

More a %  than a time scale. 0.5%  would be my guess but really they need to start now.

 

The wolf is at the door and the boy can't cry because the wolf has eaten him.

 

There's a lesson to be learned here

[TheCountOfNowhere]

3 minutes ago, SavingBear said:

I have to agree, the question is, what will the lag between the US and the UK be? 

1 month?.... 2month ?..3?  6? a Year!?

More a %  than a time scale. 0.5%  would be my guess but really they need to start now.

 

The wolf is at the door and the boy can't cry because the wolf has eaten him.

 

There's a lesson to be learned here

[TheCountOfNowhere]

From Reuters

Fed lifts rates, sees faster pace of hikes in Trump's first year

[LiveinHope]

13 minutes ago, TheCountOfNowhere said:

Who's got a grah of UK versus us interest rates since 1950?

Since 1971

[SavingBear]

3 minutes ago, LiveinHope said:

Since 1971

WOW, I kinda new there was a close corrilation but.... well just WOW!

[stormymonday_2011]

 

19 minutes ago, LiveinHope said:

Since 1971

Not much doubt about what is going to happen from that graph.

 

Edited December 14, 2016 by stormymonday_2011

[Pindar]

The question is really do they want to cause a financial crisis the likes of which the world has never seen?

[SavingBear]

14 minutes ago, TheCountOfNowhere said:

More a %  than a time scale. 0.5%  would be my guess but really they need to start now.

 

The wolf is at the door and the boy can't cry because the wolf has eaten him.

 

There's a lesson to be learned here

Sorry if being thick, are you saying they will rais BY 0.5% or raise TO 0.5%?

[kidgorgeous]

4 minutes ago, Pindar said:

The question is really do they want to cause a financial crisis the likes of which the world has never seen?

Are you referring to the FED or the BOE? 

[billybong]

15 minutes ago, LiveinHope said:

Since 1971

From that it's clear that Britain's rate is very rarely below that of the US - at least for the nearly 5 decades shown and likely many decades more.  For sure it can't be that long before it reverts to type.  

Edited December 14, 2016 by billybong

[TheCountOfNowhere]

3 minutes ago, SavingBear said:

Sorry if being thick, are you saying they will rais BY 0.5% or raise TO 0.5%?

I think they'll keep the gap at 0.5%.

 

Looks like trumps plan doesn't include low interest rates. Carney must go.

[TheCountOfNowhere]

1 minute ago, billybong said:

From that it's clear that Britain's rate is very rarely below that of the US - for at least the nearly 6 decades shown and likely many decades more.  For sure it can't be that long before it reverts to type.  

Last 20 Years...look who's leafing who.

 

Orchestrated or what.

 

Thanks for the graph...that's the one I meant. Cheers, top man.

[TheCountOfNowhere]

Wherez killer bunny

 Want to see his thoughts on what's happening.

[TheCountOfNowhere]

1 hour ago, Sancho Panza said:

He will blame Brexit,you're right on that score.Won't be his fault for destroying the velocity of money.

He said rates would rise...