Tuesday, October 7, 2008

Could it be about Interest Rates?

Brown holding bank crisis talks

"Chancellor Alistair Darling and the chairman of the Financial Services Authority, Lord Turner, are also taking part in the (BoE) discussion".

Posted by alan @ 06:16 PM (1241 views)
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17 thoughts on “Could it be about Interest Rates?

  • mark wadsworth says:

    Cutting interest rates is like pushing a piece of string.

    Even if the gummint lets banks have money for free, there is no reason to assume that they will lend it out, and if they do, they’ll lend it out at a market rate, i.e. inflation plus 2% or so = 7%.

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  • Agreed mw. The gummint knows what’ll happen, they’ll just be allowing the banks to re-build balance sheets at our long term expense.

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  • I’m not worried at all.

    What with the best chancellor since WW2, coupled with a pigeon chested man with white hair and black eyebrows, put them together with Mervyn “Steady Now” King and the man running the authority who overseas the financial industry, what could possible go wrong !

    Sh!t, where’s Homer Simpson when the world needs him most?

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  • Did I mention the fact that “the best chancellor since WW2” completely and utterly didn’t see the implications of making 5.3 million people poorer by removing the 10p tax band, or his inability to not (unnecessarily) sell all our gold reserves when the would have tripled in price !

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  • Whatever they decide…………. It’s going to cost us all–be sure of that!

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  • ITV News just said that some amazing massive deal was being formulated right now and we should know by 10pm.

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  • could this be about interest rates ?

    spot on alan you read the signs well

    Bush will push that piece of string over the pond into gordon’s lap – bernanke copter has already laid the foundations

    problem reaction solution

    lords and masters please free us from this mess and throw our children into jail

    my dog! we are so stupid!

    wealth extraction on turbo!

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  • renting2 – it will need to be some amazing massive deal because I have it on good authority that the defaults in the US are such that the $700bn “bail out” package is already deemed insufficient. What a day, what a week !

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  • smirking chimp smirking live

    how do they do that?

    get people to talk about a load of bo££ocks they don’t understand

    bet he ends up on interest rates

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  • I think t will be 50 bps rate cut, followed by banks passing on 25bps to most SVR.

    that extra .25 bps makes all the difference for the banks to re-capitalise.

    Worst case 100bps rate cut, with only 50 bps passed on, Recapitalise banks and make the the public feel they really on the case.

    UK public are familar with inflation, they accept it as part of life. Exceptional circumstances and all the spin feed bollards that goes with it. We are being conditioned now, Inflation is not the enemy! Liquidity is…….AND WHY EXACTLY?

    Then 15 months hence, after the exceptional circumstances has be re-worded into the fine print of those re-mortgage contracts and the banks have re-captalsed crank the base rate up summit nasty.

    Tadar – Screw the next government(They will lose anyway) and the householder with huge inflation, bail out the banks, The electorate can thier be reminded at the subsequant elections how inflation under the previous status quo – robbed them blind, and how prudent and on our side NuLab were all along. Genius!

    Although in my heart of hearts I hope someone has the brains to start a new bank. They would make a killing!, Europe awash with frightened people wanting money to be safe, and people want to re-mortgage away from the reckless ones that are now operating a cartel to screw them over

    “New bank”, no dodgy assetts and promise to only take on good loans, it would look like a bank run in reverse.
    Non dodgy bank no bad assets and you money will be SAFE, as we have no bad assets.

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  • The Beeb (Peston live) says that Darling is about to buy a chunk of the big clearing banks and put in place a financial package (to be advised) probably including dropped IRs.

    How nice of the government to leak everything through him! He must be able to make a few bob on the side. Nice to see NuLab looking after someone, even if they’re not pensioners or waiting for an operation.

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  • Anyone want to chip in and start a Pawn Shop?

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  • I posted this some days back but with the speed of events it drops of the bottom of the window (slide bar to long for these days as I said it would be two years back now. Anyway:

    Guess WHO?

    A Graphological Analysis from Newspaper Published Handwriting Samples.
    Date 30 April 2003. Open Document.

    Deep Psychological Profile of the Hidden Personality of Mr Anon (Abstract Version).

    Notations:

    Mr Anon is a dictatorial, intolerant, introverted idealistic perfectionist. He erroneously
    believes that he orderly, logical and pragmatic.

    Being an introverted judging type, he is intolerant and ironically, has strong idealistic concerns.
    Being a suppressed introvert, he is powerless to implement the necessary directives to attain the
    perfection in himself that he demands of others. His current profession is contraindicated for his
    psychological type as it enables him to unconsciously exercise the defective parts of his
    personality by legally and financially dominating and manipulating everyone towards his naive
    moralistic ambitions.

    This results in him coming across as an obsessive hypocrite expounding dictatorial behaviour
    sustained by punitive avengement (nevertheless unduly anxious). All of this, he naively believes
    is for everyone’s good and he expects to receive recognition. Approval will never be
    forthcoming:

    Mr Anon, during his early formation negatively identified with the father or a father figure,
    although he will contradict this should he find himself backed into a corner. Then he will claim
    alliance to his father (to negate blame) and project the superiority of his family lineage of
    righteousness.

    He grew up with stern moral prohibitions placed on him. These prohibitions, religious and
    moral laws and ethical ideals were internalised in his super-ego or controlling psyche. This
    causes him to quickly feel guilty if he does not comply with the standards that were imposed by
    his stern father figure. His father’s rigidity moulded him into an introverted sibling causing him
    to hide at every first sign of tension.

    Much of his energy is spent trying to avoid feeling guilty or in dealing with guilt for his
    transgressions, in undoing his mistakes, or making retribution for them. Thus he has a ‘Basic
    Fear’ of being condemned and consequently, must always be right.

    His hidden complaint is: “I am right and it would be a better world if everyone listened to
    what I have to say and obeyed.”

    Nonetheless, he has a suppressed introverted side which he denies, hence, he presents an
    arrogant pompous facade to conceal it.

    The key defence mechanisms that he uses are repression, reaction, formation and displacement.
    His abstraction is that he thinks that everything falls on him to personally improve. He truly
    believes that if he does not improve things then no one else will. He therefore becomes
    increasingly fixated on organising and correcting everything and criticising anyone and anything
    that does not conform to the ideals as he defines them (those of his father figure).

    His deficiencies are that he is self-righteous and angry and this anger he projects onto others for
    their failure for not living up to the ideals (of his father) that he fails to meet. Colleagues higher
    on the will not tolerate and reject his dictatorial demeanor. The direct consequences are that this
    manifests for him criticism causing in him the rage (masochistic predicaments that he
    unconsciously desires). His average level of psychological and emotional health is negative -2,
    on ‘The Scale of Emotional Health’.

    Inevitable Consequences (worse case scenario)
    His inevitable consequences: He is fastened to a rail track of logical and rational thinking. He is
    concerned about the consequences of his actions, he persuades himself that things will be
    different if he makes exceptions in his own case. Nevertheless, he is not exempt from the
    consequences of his actions.

    Eventually, the blunders of his policies, will accumulate in his professional and personal crisis,
    that will encompass all of his contemporaries. Then he will become caught in the grips of his
    basic fear of being condemned. He will completely lose sight of his basic desire to be right. This
    will result in him exposing his true character, that of the classic ‘dictator’. The resulting
    neurosis will gradually bring about his downfall by contradicting himself, doing the very thing
    he condemns others for: Twisting reason into unreason, truths into lies, order into chaos,
    righteousness into rank perversion. End

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  • theboltonfury says:

    question.

    why is the talk of our currency being devalued alone. As nearly all major economies have done a masive bailout themselves, won’t the devaluation be relative as all will have taken a hit?

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  • @theboltonfury

    Our currency will be devalued (or upvalued less than it should) against labour and goods. Thus salaries will go up (or down less than they should) and savings will be worth less and past loans cheaper in retrospect. This will reinforce leveraging perpetuating the boom-bust economy in perpetuity.

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  • The ‘independent’ MPC is just about to be bulldozed. Long live the ‘independent’ MPC!

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  • tbf – why are they lowering interest rates? To help out overindebted homeowners? Are all nations really in the same amount of sh*t? are they all dropping interest rates?

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