Friday, October 17, 2008

bye bye saving incentive hello speculation incentive

Financial crisis: Interest rates to hit lowest level since 1694

The Bank of England faces cutting borrowing costs to beneath two per cent - or even as low as one per cent - within months as it battles to protect Britain from the financial crisis and the worst recession in decades, economists said. This would be very very dangerous IMHO. Might be good for exporters i guess but still overall very worrying.

Posted by submedia @ 11:43 AM (2705 views)
Please complete the required fields.



52 thoughts on “bye bye saving incentive hello speculation incentive

  • stillthinking says:

    I don’t see why dropping interest rates is a bad idea. Inflation is going to drop sharply, prices are falling, and nobody is borrowing. Also, I don’t really see why government borrowing is so bad. Given that money must be borrowed, I would prefer the government runs up a debt than myself.
    Obviously panic stations now. People are going to have a heart attack when they realise the only way to clear their debts will be to work them off. If only Brown could realise that the best answer is to let house prices reach the bottom as soon as possible.
    The yen is doing amazingly well against sterling.

    Reply
    Please complete the required fields.



  • Lower interest rates will:

    A. Not work in the long term
    B. Might not work at all.
    C. Make the whole mess grow even further.

    Over supply of money is the root of the problem. It is, singularly, the cause of the massive hole in the debt mountain.

    “Oh, my house is worth £360,000 because next door went for that”
    “I no it only cost me £120,000 10 years ago but I MEWed it twice now (Oh how the kiddywinks enjoyed Florida and Australia, and being picked up from school in my F-Off 4×4) and I know have a mortgage of £220,000”
    “I’m sure it will bounce back in the next year or two because I promised Johnny and Mary that I would support them when they go off to UNI and do their media studies and drama degrees”

    ………”What’s that you say?”……….”Oh, regular fries, a big mac and a large coke, yes sir”………

    Reply
    Please complete the required fields.



  • from the article :-
    “Such a drastic move would bring rates, currently 4.5 per cent, to their lowest level since the Bank was founded in 1694.”

    just a little bit hazy and misleading here !

    from http://www.litencyc.com/php/stopics.php?rec=true&UID=96
    The Literary Encyclopedia

    In the early 1690s the Scottish projector William Paterson fronted several syndicates interested in establishing a public bank in England, in imitation of similar successful ventures in Italy and the Netherlands. After a few failed attempts, he and his merchant backers eventually proved successful. In early May 1694 parliament passed a statute appointing a new tax on ship tonnage expected to raise £140,000 per year. £100,000 of this was earmarked to pay interest (at 8% per annum) on a new £1.2 million loan to the government. The loan would go to cover about ¼ of that year’s expenditures upon the Nine Years War (1689-97) with France.

    If at least 50% of the loan was raised before 1 August 1694, the subscribers were to be incorporated as “The Governor and Company of the Bank of England”. Incorporation would afford legal protections needed to issue paper currency, a right that would prove very profitable.

    The full amount of the loan was subscribed, by over 1200 people in all, a mere eleven days after the books were opened on 21 June.

    also of note from the article :-
    “However, it would be a blow for Britain’s savers, who have seen their almost £1 trillion worth of deposits eroded by 16-year high inflation.”

    Reply
    Please complete the required fields.



  • If the longest dated gilt yields fell below 3.5% they might finally get round to paying off the War Loan (first world war, that is..)

    If they fell below 2.75%, they might get round to tackling the tiny legacy of the Napoleonic wars..

    However, the need to borrow on a massive scale is likely to push gilt yields up, and it gets tricky if bank rate and gilt yields are too far apart, so I doubt it.

    Reply
    Please complete the required fields.



  • Although the base rate may drop to a very low level, won`t some of the banks have to keep savings rates relatively high to keep their cash reserves from depositors ?

    Reply
    Please complete the required fields.



  • stillthinking @ 2….

    Reckon you’ve stopped thing mate.

    “I don’t see why dropping interest rates is a bad idea.” 0% interest rates in JApan didn’t stop their property market from continuing to nose-dive. In fact some commentators think it prolonged the pain.

    “Also, I don’t really see why government borrowing is so bad.” – What? It’s going to have to be paid back by a dimishing workforce, while the dole queues grow and the workshy, stay workshy. It’s the same old tax and spend, but adding massive borrowing.

    “If only Brown could realise that the best answer is to let house prices reach the bottom as soon as possible.” – The lowering interst rates will ssurely slow this down !!

    The answers to this massive CRASH are not to be found in allowing borrowing to go on in any way that it has before.

    Reply
    Please complete the required fields.



  • nooneo – don’t stop

    you keep em laughin

    and I’ll hold the rear view mirror up

    more from the history books (same source)

    “The authorizing statute had imposed two important limitations: the Bank could lend no more than £1.2 million to the government without parliamentary dispensation and could issue no more than £1.2 million in sealed bills. ”

    without parliamentary dispensation – whatever happened to that?

    Reply
    Please complete the required fields.



  • sorry. first line above should read

    Stillthinking reckon you’ve stoppedthinking mate.

    Reply
    Please complete the required fields.



  • I’m not sure inflation will drop at all, although the BoE will keep saying it will … any time soon now.

    The reason it won’t fall is because of currency devaluation of GBP, and the reason for the continuing devaluation of GBP is … because the BoE won’t tackle inflation with interest rates, and continue to chase house prices down a blind alley!

    Reply
    Please complete the required fields.



  • It is universally accepted that the root of the problem is the level of debt that we as a country are in, and that this is the result of a prolonged period of interest rates being too low. Does anybody have an explanation for how reducing interest rates will help us in the long term?

    Reply
    Please complete the required fields.



  • This will just create or prop up bubbles. Since they are unlikely to be able to keep rates at 1% for a long time (barring japanese style long term deflation) what will happen when interest rates have to rise agian? Pop…

    Reply
    Please complete the required fields.



  • Since it will be impossible to keep rates at 1 percent for any length of time (barring japanese style long term deflation) it risks simply creating/propping up bubbles. What will happen when interest rates have to rise again? Pop goes the bubble…

    Reply
    Please complete the required fields.



  • @rm96696

    “What will happen when interest rates have to rise again?”

    Technically, with inflation currently at over 200% above target, interest rates have to rise now. But the BoE ignores its only remit when its convenient.

    Reply
    Please complete the required fields.



  • It’s time to play the music. It’s time to light the lights.

    It’s time to meet the Muppets on the Muppet Show tonight.

    It’s time to put on makeup. It’s time to dress up right.

    It’s time to raise the curtain on the Muppet Show tonight.

    Why do we always come here? I guess we’ll never know.

    It’s like a kind of torture to have to watch the show.

    And now let’s get things started. Why don’t you get things started?

    It’s time to get things started

    On the most sensational, inspirational, celebrational, Muppetational

    This is what we call the Muppet Show!

    Reply
    Please complete the required fields.



  • japanese uncle says:

    GBP with such meager IR will lose its attraction, and sink to the bottom, and the import price will be skyrocketing. Are CG AD and MK prepared to face the riot? People it may be about time to look to Japan for investment. JPY is virtually the only major currency bouyant at the moment and its economy is rigid with strong manufacturing and technologies.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    What Nooneo says, with the slight amendments…

    A. Will not even work in the short term, Alice Cook did one of her lovely charts demonstrating this a day or two ago
    B. See A. Or Japan since the mid-1990s (0.5% central bank rates)
    C. Agreed. See B.

    Reply
    Please complete the required fields.



  • I think it all depends on how bad the recession is going to be. Low interest rates are intended to encourage the flow of money to help the economy get moving again. But that doesn’t mean to say that bubbles will reinflate. We are beyond that stage now. The rocket is falling to earth. The idea is to stop it burying itself. In the end, nobody really knows for sure.

    Reply
    Please complete the required fields.



  • mountain goat says:

    Stillthinking – “Given that money must be borrowed, I would prefer the government runs up a debt than myself.”

    The debt will be yours, assuming you live in the UK and pay tax.

    Reply
    Please complete the required fields.



  • now here’s a bloke with a odd view of things

    from xat3/4

    Without any of us doing anything revolutionary, we are now witnessing the collpase and death of the current economic system.

    Current Political “leadership” cannot see outside the confines of their cages. They think they can repair the crumbling ediface if they pump money stolen from tax payers and give it to the very banks who helped to break the old system! We see that even the people playing in the Stock market casinos do not believe that this will help.

    A more sensible solution would be to cancel all debts.

    The people who first thought up the idea of money used to do this regularly, after they noticed how money eventually tenced to accumuate in the hands of a few people and a lot of others found themsleves owing it to these same people, instead of it just being used as a medium for easier exchange and trade of goods and services.
    They called the cancellation of debts a Jubilee, and had it about evry 25 years, but exactly when was set by the King.

    Now suppose we did this now – the very poor countries that are kept poor by servicing the capital debts they owe to wealthy countries, suddenly freed of their debt burdens, woud be able to develop their infrastructures and improve their living standards.

    Small businesses, that are having to release employees or even close because they cannot get loans at reasonable rates to restock after selling goods and awaiting invoices to be paid, would not have to repay old loand and could keep on in business and would not be forced to release employees.

    Struggling buyers of homes on mortgages, suddenly faced with lost jobs as the slump deepens, instead would no longer owe the money but they would own their homes outright. They would not be so hard pressed and could carry on living there and not have to pay a large part of their incomes for the servicing of their debts.

    Even consumers who had been seduced to overspend by all the clever advertising, and now have maxed out their credit cards, would be able to start with zero owing on their accounts – they could go out and buy goods again, thereby turning a slump into a boom.

    Most of the so called “TOXIC DEBT” will never be recovered anyway, so the only people who would lose would be the very institutions – banks, market speculators, insurance companies, day traders, inventors of package hollow bonds, and the like. The wobbly banks would be shut down but the same people, with the same “skills”, would be able to start uo new ones and begin the game all over again. At least we might have a chance the next time to have some proper controls over the system.

    Briar

    http://www.xat.org/xat/moneyhistory.html

    Reply
    Please complete the required fields.



  • @19 Malct – I have to say I think this chap’s views are very interesting and would vote for giving it a go as I can’t see how it would really alter the day-2-day business for everybody. What a thought, no more debt.
    However, I still believe based on circumstantial evidence that the boom and busts are engineered and triggered at somebody’s discretion. And these invisible hands have no intention of providing equitable policies for the masses – they like the status quo just the way it is as it provides the ultimate prize – Power.

    Reply
    Please complete the required fields.



  • stillthinking says:

    Well, nobody has to live in the UK so you do kind of get a choice. What I meant was that lowering interest rates is not going to encourage further borrowing, because nobody wants to borrow. We are going into a deflationary recession so savers will still get a real return, and that being the case, then move interest rates down in advance is better than waiting until later. Inflation is going to disappear, I think so, but if thats right then the BoE rate of 5% is punitively high. While low rates certainly created this mess, the situation is different now.
    The value of UK savings is a reflection of the strength of the UK economy as well as the interest rate, the problem for the economy now is insufficient income for debt servicing. The more disposable income people have the more they can pay down the debt. I do realise that higher rates are always better for savings but if you don’t like the rate, then use your savings more productively yourself.
    Low interest rates do not always lead to bubbles. Surely it is more and more apparent that we are in the same situation that Japan was but with more debt. High interest rates now are a beggar thy neighbour policy.
    Criticisms here are based on low interest rates -> borrowing explodes. But borrowing is not going to explode. All the major items are falling in price already. People are going to stop spending, in fact they have, so unemployment is going up. Really it is simple, money needs to change hands to support jobs. Anything that slows down the painful realignment of the UK economy is good. How much of an advantage do we really expect ? House owners are looking at losses of up to 2k a month. What do you want?
    There is a big difference between looking for a normal wage multiple in housing, instead of looking for absolute bankruptcy surrounding you. Having worked out that your savings will be worth more the bigger the collapse doesn’t necessarily mean you will be wealthier in the future.
    One last point, if it won’t work anyway, then there is no harm in it.

    Reply
    Please complete the required fields.



  • layers – the xat.org link above provides information which tends to agree with your view.

    but then what is optimism for if we don’t use it?

    Reply
    Please complete the required fields.



  • Notice how everybody on Question Time last night took it for granted that IRs should come down – no clue from any of ’em about any possibility of a downside to such a move.

    Reply
    Please complete the required fields.



  • Having a jubilee is a ridiculous idea – in the current circumstances.

    It originated in Isreal and they only did it twice.

    Everyone who has been senseless or greedy and has borrowed way beyond their means gets rewarded – and they don’t have to learn their lesson, because if they run up massive debt again the jubilee will bail them out. Oh, then again, this is what’s just happened to the bankers.

    Anyway – I don’t like the idea of all these people not having to pay for the widescreen teles and houses they have over-extended themselves to buy, when I have live sensibly within my means.

    Reply
    Please complete the required fields.



  • Icarus – did you also notice how every mention of BIG interest rate cuts got a big round of applause. This means that 1. the people don’t get it and 2. the politicians will cut IR’s if that what gives them the biggest chance of winning the next election.

    Reply
    Please complete the required fields.



  • Well if this story has any substance behind it then it is indeed a grave day for us IMO.

    Tell me I’m wrong but I don’t suspect many of us anticipated rates being cut so severely.

    IMO if they did this and kept borrowing pinned at 3-4 times multiple for mortgages then it might work.

    But with GB in control – which he is now – then re-inflating the bubble will be encouraged at all costs.

    Reply
    Please complete the required fields.



  • waitingfor hpc says:

    hold on a minute – if we cut rates more than the Euro and other major currencies we will loose out. so it will only happen if all major currencies follow suit, which i doubt they will. I have a lot of money in banks (safe(ish) ones) and can transfer all to any foreign currency with one phone call. Other savers will surely do the same and the banks will loose out.

    Reply
    Please complete the required fields.



  • What about a cooperative bank in the UK like JAF bank Sweden but instead of deposits in Fiat currency which devalues with inflation Gold is used and borrowed then the borrows convert it to fiat crap for transactions with sheeple the gold is repaid the same as repayments are made in the Jaf bank and the cost of gold ownership are paid for by borrowers.

    Reply
    Please complete the required fields.



  • Seeing as the govt needs to borrow huge sums of money in the next few years (possibly as much as 100bn/year) there is no way IR can come down that much. If they did GBP would crash, causing higher import prices and higher inflation, and also lead to the people providing all that borrowing requiring a higher rate of interest to compensate for the falling pound. All of which means that IR can’t go much lower than they are now, and the effect on what people are paying on mortgages and loans would be small anyway as Banks will use the lower rates to rebuild their balance sheets. Face it, we are heading into (if not already in) a deep recession, and there’s nothing much we can do to stop it.

    Reply
    Please complete the required fields.



  • I’m thinking of selling all that I have, spending all my savings on a nice year or two of holidays, eating out and other stuff.

    I will then go and do what half the population is doing:

    1. Sign on and stay there or fake mentall ilness (OK I won’t have to try to hard on that one)
    2. Get my rent paid.
    3. Get help with heating, insulation and other benifits.
    4. Get a job on the side.
    5. Read books and surf the internet all my spare time of the day.
    6. Be better off than If I don’t do parts 1 – 4.

    Honestly, after years and years of trying, being prudent, not borrowing above my means or ability to pay back, I feel thoroughly cheated because people (sheeeple) with absolutely no business acumen, lent money, irrationally, that they didn’t have, to people who either won’t pay it back because their homes simply aren’t worth what they paid for them, or were never going to pay it back unless the property equivelant of the 3:30 at newmarket was going to come in at 10-1.

    This country stinks….. And we mock the French !!!

    Reply
    Please complete the required fields.



  • Don’t forget that the recent half point cut in interest rates was worldwide, because the crisis is worldwide. It is most unlikely that the UK will cut rates while other countries hold theirs, so a big drop in the £ is unlikely on those grounds. A drop in interest rates now will not have the effect it would have had a couple of years ago; and it won’t necessarily mean cheaper or more widely available mortgages. If we really are balanced on the verge of a depression, high interest rates will give us a lot more than a hpc.

    Reply
    Please complete the required fields.



  • waitingfor hpc says:

    titaniccaptain where do you go to buy gold – i would like some?

    Reply
    Please complete the required fields.



  • A more sensible solution would be to cancel all debts.

    Rephrase – how about value adders work for nothing

    I’m sure to make PM with these ideas

    Reply
    Please complete the required fields.



  • @19 malct…

    The problem with that theory is that any savings you have would also be wiped clear as they are a debt from the bank to you.
    It would also create huge divisions in society between the people without and the people with a property, including the very lucky ones who had only made a single payment on their mortgage.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    @ waiting for HPC, you have to be very careful here – if you sell GBP and buy some other currency, you are gambling on a future cut in interest rates relative to the other country. But a million people much quicker and richer than you have probably already gambled on this – and have been gambling on this for 6 months, which is why GBP has fallen by about 10% or 15% on a trade weighted basis – so you might just be chasing the herd.

    There again, this might be the cleverest thing you could do – only time will tell!

    Reply
    Please complete the required fields.



  • I don’t see how we expect to avoid a downturn, whether its a really bad recession or a depression. Everything must equal out and return to a sustainable level. The fact that we’ve had a massive boom period based on credit means we must now have a downturn with equal and opposite characteristics. That means high unemployment, lots of bankruptcies, and a HPC. Anything else would require that we continue with our heads in the sand spending money we don’t have, putting off the inevitable but making it worse. As far as I see it, the only choice to make is whether we it happens quickly and sharply i.e. a couple of years, or over a prolonged period. History says it will mirror the upswing, so I guess about 10 years, which they would probably label a ‘soft-landing’. But 10 years of poverty, equal and opposite to the 10 years of extravagance we have just had would be horrific. Personally, I’d prefer 2 years of misery so we can get back to a more sustainable life and leave this mess behind us.

    Reply
    Please complete the required fields.



  • 1. Sign on and stay there or fake mentall ilness (OK I won’t have to try to hard on that one) @ 2.16

    nooneo – no-one in our society has to fake mental illness – it is well noted in progressive psychological writings that our society itself creates mental health and emotional problems. The Human Givens Foundation, Oliver James and the late R D Laing are key elements in this approach. Here’s an extract from HG’s text

    “We are all born with a rich natural inheritance — a partially formed mind containing a genetic treasure house of innate knowledge patterns. These patterns appear as physical and emotional needs that must be satisfactorily met if our minds are to unfold and develop to their fullest potential. How they connect with the world, and unfold in it, determines our own individual character, the clarity of our perceptions, our own and our family’s emotional health and happiness — as well as the maturity and humanity of the society we create around us.

    This book explores these human givens and looks at what each child and adult needs from the environment in order to develop well. It suggests that, as a society, we are unwittingly damaging or squandering our natural inheritance. This results in rising levels of mental distress, such as depression, anxiety, psychosis, addiction and an explosion of primitive greed behaviours. But Human Givens also explores startling new scientific ideas and findings about how the mind works, which show us that we can overcome these distressing conditions much more easily than previously thought.”

    and

    “The human givens audit

    There are three main types of thinking that need to be checked for. Autistic thinking by our decision makers is the biggest source of blinkered solutions causing us more problems than they solve, but nonetheless it usually springs from good intentions.

    However, there are two other styles of thinking that can come to dominate an organisation that are not so well intentioned, psychopathic thinking and cult thinking.

    A survey published in 1996 found that one in six UK managers is a psychopath.[92] The classic signs of psychopathy that these managers exhibited were: emotional coldness, bullying, deceit, lack of remorse and love of risk. As these people intimidate, ingratiate and charm their way to more senior positions in an organisation, they will often employ other psychopaths to fill lower managerial roles. This can result in a culture of bullying which undermines the mental health of ordinary staff members.

    The third style of ill-intentioned thinking that can come to dominate an organisation to the detriment of its members and, ultimately, the wider public, is cult thinking.[93] Cult thinking is not, as many people assume, confined to strange minority ‘religions’. It can be found in businesses and political movements and in academic, educational, psychotherapeutic, scientific and sports organisations as well. Typically, in organisations run on cult lines, there is a progressive attack on the member’s needs for autonomy, for connecting to the wider community and having a stable family life, combined with a perverse abuse of the need to be stretched. ”

    and this from Oliver James

    from the book Affluenza

    “. . . The above list of causes of emotional distress is the reason I have rejected ‘mental illness’ altogether as a way of characterising disturbance. Like many before me, I have come to the conclusion that it is grossly inaccurate to depict depression, anxiety, or even schizophrenia and other psychoses, as a physical disease of the human body requiring medical treatment. – . . . Cards on the table, I contend that emotional distress is best understood as a rational response to sick societies. Change those societies and we will all be less distressed.”
    http://www.selfishcapitalist.com/

    Reply
    Please complete the required fields.



  • TC
    Been looking at Gold myself, I think you are buying and reserving physical at Bullion Vault.
    I looked at Guernsey Mint (briefly) as we discussed the otherday. There seemed to be alot of terms attached with get outs eg a +/- 5% tolerance on what you get weight wise (which seemed alot. (bet it’s never +).

    You’d think you could put some savings aside without turning it into a full time operatioon wouldn’t you.

    Reply
    Please complete the required fields.



  • Struggle Against Financial Exploitation

    SAFE is a company limited by guarantee and has developed from the original SAFE, (Struggle Against Financial Exploitation), group which, over a decade ago carried out various demonstrations to draw attention to how both the banks and other governing institutions were seemingly condoning systemic fraud and deception upon unsuspecting individuals throughout the UK.

    Having matured, SAFE is established as a responsible battle proven group, who have gained the respect and attention of Members of the House of Lords and Members of Parliament across the political spectrum, various Media and Press contacts as well as some high profile names.

    We now have been accepted as a Parliamentary Working Group, to highlight the serious issues raised in the cases that have been lodged with the group, we also provide credible statistics to enable Members of Parliament to ask questions in the house, table Early Day Motions in an effort to bring forth answers from those responsible for the control and policing of banking, financial services and the judiciary.

    http://www.safe-online.org/About-Us.html

    Reply
    Please complete the required fields.



  • Bullion Vault have a list of charges over a given period, including storage, insurance purchasing and selling costs etc. Which they claim are the cheapest.

    Obviously the difference between the buy & sell price on any given day is also a factor/margin to be taken into account.

    When liquidating I guess you can decide which currency to liquidate into. (I suppose you’d have to have a bank account already set up ta accept that currency.

    What also surprised me was the fact that there are different buy/sell prices for US, UK & Switzerland. In fact it looks as though you could just buy in UK & sell in US and make an instant profit based on the quoted rates but no doubt there’s a catch to that one.

    Another thing to consider and which I don’t have the answer to is how do you pay tax on any transactions.

    Very confusing if you bought in 1 currency and sold in another.

    Also can the Inland Revenue tax you on the devaluation of Sterling ?

    Reply
    Please complete the required fields.



  • I’m also still getting my head around owning something ‘on-line’ so to speak, ok it’s in a vault and exists but can Bullion Vault as a business go down and it’s assets (your Gold) be taken ?

    & I don’t need to go into the risks of holding anymore than £1000 worth or so yourself.

    Reply
    Please complete the required fields.



  • 47. str 2007

    From my experience:
    >>When liquidating I guess you can decide which currency to liquidate into. – No you can only put funds back into the account you sourced them from so foreign exchange is out.
    >>In fact it looks as though you could just buy in UK & sell in US – you can only sell gold back into the market where you own it otherwise no spreads would exist
    >>Another thing to consider and which I don’t have the answer to is how do you pay tax on any transactions. – capital gains the same as owning shares

    Reply
    Please complete the required fields.



  • sold 2 rent 1 says:

    300 year crash coming right up

    Reply
    Please complete the required fields.



  • str 2007 @ 3.45

    Bullionvault holds your gold in bailement – you own the gold and not bullionvault, so if the company goes bust the liquidators cannot touch it.

    Reply
    Please complete the required fields.



  • matt & do’h
    Thanks, are you both with Bullion Vault ?

    S2R1
    Was that in answer to something or just a statement ?
    And Crash in what, Stocks, Property, Gold or Interest Rates ?

    Reply
    Please complete the required fields.



  • Interest rates may have to be slashed to the lowest level in more than 300 years, experts have warned.
    Financial crisis: Interest rates to hit lowest level since 1694

    it would be a blow for Britain’s savers, who have seen their almost £1 trillion worth of deposits eroded by 16-year high inflation.

    Reply
    Please complete the required fields.



  • sorry, that was a link to s2r1’s reference to a 300 year crash

    give or take a decade or two. a king charles spaniel, a king james bible or a king william orange.

    Reply
    Please complete the required fields.



  • titanic:
    I would imagine that if things get so bad that the only way to preserve your money is to hold it as gold, no third-party repository could be classed as 100% reliable. Nothing like that has happened before, not even in the 30s. But apart from the catastrophists, I don’t think anyone is predicting such a future. Maybe we should worry ….

    Reply
    Please complete the required fields.



  • letthemfall

    malct catastrophist !

    hmmn – OK if it makes somebody happy

    Reply
    Please complete the required fields.



  • hey submedia – this is your post

    fly your colours

    Reply
    Please complete the required fields.



  • The banks need more deposits in future, if any banking is meant to happen. Cutting interest rates for short-term “re-animation” of the dying consumerism bubble is a stupid and shortsighted move.

    Reply
    Please complete the required fields.



  • Bullionvault do not let you take custody of your gold. Therefore I do not see it as better than any other paper-promise of gold. They claim that your investment is protected by property law rather than the FSA, but there is nothing to stop governments confiscating it, changing the law if necessary. And if the company went into liquidation, you’re going to have to go through the courts to get your gold anyway. It’s just a well-marketed new business idea.

    Physical Gold ETFs are liquid, and backed by physical gold holdings. When the time comes to panic about paper promises I will liquidate and buy gold from a dealer or broker and defend it myself.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>