penbat1 Posted October 27, 2008 Share Posted October 27, 2008 http://www.thisismoney.co.uk/news/article....e_id=2&ct=5 Quote Link to comment Share on other sites More sharing options...
renterbob Posted October 27, 2008 Share Posted October 27, 2008 http://www.thisismoney.co.uk/news/article....e_id=2&ct=5 Erm, I'll apply for those. Small print: We may change the conditions of this agreement at any time. 50% interest rates. Quote Link to comment Share on other sites More sharing options...
Tinman Posted October 27, 2008 Share Posted October 27, 2008 http://www.thisismoney.co.uk/news/article....e_id=2&ct=5 More pie in the sky economics................ Japan has a huge manufacturing base, whereas we inport everything. Inflation would skyrocket and the pound would be toast. Quote Link to comment Share on other sites More sharing options...
A.steve Posted October 27, 2008 Share Posted October 27, 2008 Charles Goodhart, hmmm, he's the bloke who is famous for Goodhart's law - which leads to the conclusion that monetary targets can't be fixed for long periods as, over time, people establish how to subvert them. He does seem bearish, but I wonder if some of the tone is down to thisIsMoney being owned by the Daily Hate? Quote Link to comment Share on other sites More sharing options...
AteMoose Posted October 27, 2008 Share Posted October 27, 2008 Mmmmm, i would even come off my fixed rate early to fix for 25 years at 0.5% Quote Link to comment Share on other sites More sharing options...
Heading South Posted October 27, 2008 Share Posted October 27, 2008 (edited) 0% interest rates might be good news for borrowers but bad news for savers given that inflation is north of 5%. So if this ever happens the feckless will be rewarded at the expense of those who've been prudent. Perhaps coordinated action by millions of savers to withdraw most of their cash from the banks might make the BoE and Gordo think again on this one. Edited October 27, 2008 by Heading South Quote Link to comment Share on other sites More sharing options...
Guest Shedfish Posted October 27, 2008 Share Posted October 27, 2008 i don't get this talk of 0% interest rates - if the pound falls much faster we'll be thinking about the IMF anything could happen now. including a drive-by rate rise having said that, if i could borrow at 0%, well why not Quote Link to comment Share on other sites More sharing options...
Deckard Posted October 27, 2008 Share Posted October 27, 2008 http://www.thisismoney.co.uk/news/article....e_id=2&ct=5 God, the London School of Economics truly is rubbish, and bound to go bust soon Quote Link to comment Share on other sites More sharing options...
horus Posted October 27, 2008 Share Posted October 27, 2008 0% rate that sounds great. Quote Link to comment Share on other sites More sharing options...
Winston Wolf Posted October 27, 2008 Share Posted October 27, 2008 But surely the government would pay us any difference in the fixed rate to whatever the rate does go to wouldnt they? After all they gave all that money to bail out the banks who were grossly negligent and greedy and all the ICESAVE people are getting there money back also chasing high rates. No surely the government will do the right thing and pay part of my mortgage for me and If I loose a bet in Ladbrokes hey surely they will give me a sub. What a joke this country has become. Quote Link to comment Share on other sites More sharing options...
jac Posted October 27, 2008 Share Posted October 27, 2008 0% very likely in the us.. probably here too quantitative easing central banks funding government borrowing credit system is broke oh the pound will fall? against what? the dollar? the euro? they're also fiat currencies in trouble the only currency to rise will be gold which will yield the same - zero Quote Link to comment Share on other sites More sharing options...
Injin Posted October 27, 2008 Share Posted October 27, 2008 What sort of thing did you think they were going to get up to in a hyperinflation? Quote Link to comment Share on other sites More sharing options...
Wad Posted October 27, 2008 Share Posted October 27, 2008 Just a thought for those of you who are perhaps not as geeky as me. If a house has annual rental income of £10,000 then at a discount rate of 0% all the way out along the curve the house is worth an infinite sum of money as a perpetuity. Try the following: £10,000 / 5% = £200k Then try this: £10,000 / 2% = £500k Then try something even nicer: £10,000 / 1% = £1 million Then try something illogical: £10,000 / 0% = Infinity You can see the logic of lowering interest rates to keep house prices up but interest rates can never be zero except at the very short end of the yield curve unless of course you want to make the world worth an infinite amount. Erm...maybe the bankers are working on ths as the ultimate bailout! Quote Link to comment Share on other sites More sharing options...
Conquistador Posted October 27, 2008 Share Posted October 27, 2008 A non-zero number divided by zero is not infinity, it is undefined. Not sure what that means for your argument! Quote Link to comment Share on other sites More sharing options...
winkie Posted October 27, 2008 Share Posted October 27, 2008 The plan is to get the world and his wife to come on down...then we can all fall together. Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted October 27, 2008 Share Posted October 27, 2008 Charles Goodhart from 1997 only. Increase 12 votes (average = 8.12) Reduce 7 votes (average = 9.72) Maintain 17 vote (average = 30.56) Meetings = 36 (average = 48.4) Special Power = Reduce http://www.bankofengland.co.uk/monetarypolicy/mpcvoting.xls Quote Link to comment Share on other sites More sharing options...
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