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Chances Of An Ir Cut Diminishing...

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Guest Bart of Darkness

Chances Of An Ir Cut Diminishing...

That's thinking logically.

You need to start thinking more "prudently". ;)

Ask TTRTR, he's got the hang of Brown thinking.

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nice little piece by jeff randall in today's telegraph

http://www.telegraph.co.uk/money/main.jhtm...08/ccjeff08.xml

Our borrowing is binge madness

Bleating by the British Retail Consortium this week about the need for a cut in interest rates is rather like hearing a drunk crying out for more drink at the end of a month-long party.

The past eight or nine years have been a time of exceptional good fortune for UK retailers. A combination of low interest rates and high employment has encouraged consumers to borrow recklessly to fund a see-it-want-it-have-it spending boom.

Unfortunately, as is often the case, the maximum soon becomes the norm, and then the norm becomes the minimum. Because shoppers are finally running out of juice, retailers are now complaining about hard times.

As last week's record bankruptcy figures and rising house repossessions demonstrated, British consumers are choking on the debt that has been stuffed down their throats. The last thing they need is a signal to borrow even more, simply to keep shopkeepers' tills ringing.

If the BRC thinks life is tough now, then some of its members could be in real trouble by the end of this year, because the millstone of credit-card bills, made worse by rising taxes and higher fuel prices, is sure to drag many more consumers into insolvency.

At this point in the cycle, when the economy has been through a long period of unprecedented prosperity, it's crazy that so many citizens are hurtling towards financial ruin. But they are, because personal debt was allowed to spiral out of control.

Just as we now regard the internet bubble of the late-1990s as a time when vacuity triumphed over rationality, I'm sure that history will judge Britain's £1 trillion borrowing binge as a bewildering example of collective madness.

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A cut!??

If the rates get cut I'm getting everything out of the UK.

I cannot see how you could hold anything (more than say £500) in a sterling denomination if the BoE base rate is lower than the Feds. Surely you would be better to invest overseas and come back to sterling once it weakens.

A cut would harm the currency for the sake of delaying the inevitable

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Chances Of An Ir Cut Diminishing...

That's thinking logically.

You need to start thinking more "prudently". ;)

Ask TTRTR, he's got the hang of Brown thinking.

Both Brown and the MPC have warned that if wage inflation becomes an issue IR's will have to raise.

Brown might get stung by a house price crash.. and Bulls claim he won't let that happen but the other choice is massive wage inflation followed by a recession.. That is a fact as far as I can see...

To that end.. which would you want to be remembered for..

House's getting too expensive and crashing.. he can take some responsiblity..

But the argument of

"If people honestly thought that 300% inflation is housing was sustainable over such a short time in some areas and were prepared to embrace debt that they knew they couln't pay to buy a property how could I stop them? The Head of the MPC has warned for years now that it was not sustaineable. The government is looking into borrowing practices, fradulent mortgages that were never verified against income seem to have been rife for years. The crash has affected many, and I feel sorry for their situation but the man responsible for predicting economic trends over this period has warned about the market repeatedly."

Would that do?

How many would be affected? really?

How many are affected by pensions right now..? Christ this would take the heat of him for those..

A House Price Crash...?

Not as big a deal as a recession..

Trust me Bulls..

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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