Wednesday, October 8, 2008

Global Rate Cuts

FED, ECB, BOE and China Cut Rates

Oh

Posted by yoss @ 12:30 PM (1762 views)
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30 thoughts on “Global Rate Cuts

  • Absolutely the correct thing to do and I don’t know why this hasn’t been done before now. We are looking at an incredibly priolous situation. Housepricecrashers need not worry – this won’t stop the fall, just the depression.

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  • Unless they force banks to reduce interest rates and credit card rates as well. It will achieve nothing.

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  • Planning4acrash says:

    The shadow, collectivist global government, exposed.

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  • Planning4acrash says:

    Dave. It will make the depression worse, because the inflation must be dealt with or cause meltdown, just a bit later now.

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  • probably good but not enough, especially becouse is impacting libor a lot.. lok at Ted Spread for instance.
    more generally how do you expect economy recover and house crash continuing??

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  • Eternal Sceptic says:

    I do not know if this is the answer. Certainly this type of unified action will help. But why oh why wait until the ship is 90% submerged before plugging the leak.
    Also the totally ignored man in the street, who will end up paying for this mess, would like some accountability. Perhaps a 95% retroactive tax on all bonuses awarded in the financial sector over the last five years would be a start, and confiscate golden parachute. 300,000,000 for bankrupting Lehmans? nice work if you can get it. Is this mr brown’s example of morality and integrity?

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  • waitingfor hpc says:

    if you think 0.5% drop stops a depression that is already here i fear for your sanity!

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  • Bear momentum – they can do what they like.

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  • 1. dave said…”Housepricecrashers need not worry”

    Many HPCers are savers. Are you saying that because it is joint, this action won’t result in inflation, erosion of savings or lowering of exchange rates?.

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  • If we want to stop staring into the abyss, we have to move away from the cliff.

    “Hey you, over there, MOVE AWAY from the ATM, you don’t need a new phone, your jeans look perfectly servicable to me, and your car has at least another 30,000 miles on it before it’s dead”

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  • Wow ! This really is a right old mess :O)

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  • 0.5 rate cut helped the markets………. for all of 30 minutes.

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  • And the UK cut it’s rates _proportionately_ *less* than the US. A US slashing of rates by nearly 60% (3 in 5) previously did little to fix anything … We drop ours by 10% (0.5 in 5) and now we are all supposed to rejoice that Gordon Brown has saved the world?

    I think not. I agree this will do little to stop the House Price Crash … it will frustrate us savers (for sure!) … what will this do (if *anything*) ????

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  • Highly inflationary move. Buy gold.

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  • Wow – proof as if it was needed that we are all fugged.

    Thank goodness I bought a lot of gold – at least some of my wealth is nowhere near the perilous banks.

    IMO this is the wrong move. Too little too late, and will only make matters worse. Much, much worse.

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  • Oh, and I forgot to say – the cuts will have bug*er all effect on HPC.

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  • FTSE down 3.8%!!! Clearly Darling & Brown, doing ‘whatever it takes’ isn’t making a blind bit of difference. And in the process you’re destroying my hard earned savings, you B*****s. What now? Reduce interest rates to 1%?!

    Get the guys from Sweden who successfully navigated their financial storm in the 70s, ‘cos you guys don’t know sh*t.
    Also, how about letting consumers pay off ALL their debts with one loan from the BoE at 2% IR? Surely that would stabilise the system…, damn, keep forgetting the reality is to do with all the derivatives products out there!

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  • mark wadsworth says:

    What P Doff says.

    Although inflation doesn’t trouble me unduly, I am a saver now so low interest rates = Bad Thing.

    OTOH, swine that I am, I changed a third of my ill gotten property gains into foreign currency a while back, so if GBP tanks, well, that’s a win-win as far as I am concerned.

    Gummints cannot beat the markets – they just create opportunities for speculators (and there are millions of people who are a million times richer and a million times cleverer than I am).

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  • matt_the_hat says:

    Someone’s forgot to tell them that the levers are no longer connected to anything

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  • Love her or loathe her Mrs Thatcher told us all long ago “you cant buck the market”

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  • This is all not good news. I wouldnt want to be running for President of the USA at the moment. What are the wealth funds doing at the moment? Kuwait alone has $400bn sitting in its vaults.

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  • little professor says:

    What. The. Fukk.

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  • It’s only an inflationary move if it causes people to borrow more (which creates money) instead of paying off debt (which destroys money) or, for the miniscule number of people who actually have no debts, saving it (which takes money out of the supply). Since the general feeling is of worry, and that prices are already too high, people don’t want to borrow more money so less money chases more goods (assuming production continues to increase), and we’re actually deflating.

    Meanwhile the government continues to spend more money than it has, creating more money, only because it does so by borrowing money, it’s creating more debts so next year’s interest will be even higher. Of the two things that have happened today, the bailout causes more chance of inflation than the rate cut. Today the government has approved spending the same amount of money as actual notes and coins in circulation, about £50bn.

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  • Mark [email protected]
    “I changed a third of my ill gotten property gains into foreign currency a while back”

    I no its probably too late now but i have been thinking of doing this for a while, but didn’t know how to.
    Where do you put the foreign currency? in a bank? or a bank vault?
    help

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  • Sittingitout says:

    Ah, the reduction in interest rates will allow me to pay back my mortgage sooner. I shall not be spending it in the wider ecconomy.

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  • @13. matt_the_hat said…

    Someone’s forgot to tell them that the levers are no longer connected to anything

    HA HA

    Quality comment

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  • Mark Wadsworth

    where is your foreign currency? If it’s abroad, how do you know that you won’t be a foreigner at the end of a long chain of creditors if your foreign bank goes t*ts up?

    Or can you keep foreign currency on deposit in the UK? Would it be covered by the FSCS?

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  • I’m no expert but to my mind fiat is pretty well fooked, for now at least. You can hedge with whatever, but at some point you’ll probably need to exchange to the fiat currency of whatever country you’re holed-up in. Those that have been prudent and saved will be shafted but better suited by nature to an uncertain future.

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  • FED ECB BOE & PRC all reduce rates in unison. Whee! This is more exciting than co-ordinated muff diving. How long till a single one world currency? So much easier darling.

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  • inbreda – you mentioned a good site for buying gold before. Any chance you could post the site name again please?

    Cheers

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