jonathan trees Posted April 25, 2006 Share Posted April 25, 2006 TTRTR, Base rates are not really that relevant. At the end of the day a crash occurs when the Bank of England contracts the money supply which means that there is less money in the economy resulting in a fall in demand, in other words, a recession. The Bank of England doesn't need to raise interest rates in order to contract the money supply. All the Bank of England need to do to contract the money supply is is no longer increase the money supply by buying bonds through Open Market Operations and it can take money out of the economy by selling bonds and by raising the reserve ratio that banks must have in order to lend money. TTRTR, your stupid post just reflects how much of an idiot you are. I suggest you go back to school and learn some basic economics. Quote Link to comment Share on other sites More sharing options...
apom Posted April 25, 2006 Share Posted April 25, 2006 Well, do you? Dude... Sorry you left of with the wages will raise by 4% and no one has said anyting differently. Prices are crashing round me and properties are not selling. Some do.. its all about what people think they should cost.. nothing else.. It is all opinion.. 27% drops, is that not a crash.??? Quote Link to comment Share on other sites More sharing options...
Magpie Posted April 25, 2006 Share Posted April 25, 2006 Well spotted. It was deliberate, I was just trying to keep things simple for the bears. No need to feel ashamed of your maths gremlins. You're not the first one here to struggle with percentages. Quote Link to comment Share on other sites More sharing options...
karhu Posted April 25, 2006 Share Posted April 25, 2006 No need to feel ashamed of your maths gremlins. You're not the first one here to struggle with percentages. He's also not the first one to struggle with the concept, "houses are no longer a good investment." Quote Link to comment Share on other sites More sharing options...
Jason Posted April 25, 2006 Share Posted April 25, 2006 I think an increase to 4.75% would stop the market in it's tracks. Currently everyone thinks rates will go down, you can't blame them - the BBC says so. A rise would be a shock to the system... IMHO. Quote Link to comment Share on other sites More sharing options...
ETOPS773 Posted April 25, 2006 Share Posted April 25, 2006 (edited) Nah, we've been at 4.75% and they survived that. You got to think EVIL :angry: If I were in charge of the BOE & wanted to cause a HPC, I would increase rates straight to at LEAST 5.75% - 1% above the highest point last summer. That should cause some concern. I'd probably ramp the rates up 2.5% a month in the winter months to get people's spirits down and try and trigger a period of gloom. THAT would probably stall the spring bounce. Then resort to 1% increases a month until they hit 16% and leave them there for a couple of years. Rough the sheeple up a bit **All opinions given are by ETOPS773 and ETOPS773 alone. All suggestions, thoughts and events, if happen in the real world are purely co incedental and ETOPS773 accepts no responsibility for real world events.Nuff said.** Edited April 25, 2006 by ETOPS773 Quote Link to comment Share on other sites More sharing options...
MarkG Posted April 25, 2006 Share Posted April 25, 2006 Nah, we've been at 4.75% and they survived that. Only because of a rate cut. 'Everyone' knows that rates are going down further now, so a rate rise would instantly kill the market, in my opinion. Quote Link to comment Share on other sites More sharing options...
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