Bank of England cuts interest rate

-|ScottFree|- said:
There is hope for us all................

If you had purchased £1000 of Northern Rock shares a year ago they would be
worth £4.95 now!!!!

If you had purchased £1000 of HBOS shares a week ago they would be worth
£16.50 now!!!!

If you had invested £1000 in XL Leisure they would be worth less than £5
now!!!!

If you had bought £1000 worth of Tennents Lager one year ago, drank it all,
saved all the empty aluminium cans and sent them to a recycling plant, you would
get £214!!!!

It is a relief to know that the best current investment ADVICE is to DRINK HEAVILY AND RECYCLE.
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I keep seeing this get posted, it's a load of nonsense.
 
At least gold has gone up sharply with the current financial situation so as a saver I don't totally lose out. Up by 25% in a couple of weeks! Shows you just how badly the economy is doing.
 
Slinwagh said:
It is all very well for the OcUK economists to deride the bail out plan but so far I don't think I have seen anyone come up with an alternative.

Something had to be done, whether what was done is correct I do not know and would never profess that I do know. I think it would be safe to say that that the whole situation was only going to snowball.
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Obviously spoken for from a diehard Labour supporter. Ignore the last ten years of tax and spend, this is a global problem nothing to do with us.
 
blaze of glory said:
Since when has borrowing more money solved overborrowing.
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Borrowing is a fact of business, in more ways than you might think. Very few companies keep enough cash on hand to pay wages at the end of every month, they borrow the money over a short period (a week or a month or whatever) then pay it back when they get the income from their own sales. If they can't borrow to pay wages then jobs disappear literally overnight.

That's why the rate cut and other things that have happened recently are important - banks refusing to lend very much to each other is a problem for them, but when otherwise financially healthy companies can't get the credit to pay wages then Joe Public loses his job, which affects him, his family, the people he buys goods and services from.

The rate cut isn't so much about helping the banks as it is about stopping the rot from spreading out of the financial sector into the wider economy.
 
blaze of glory said:
Obviously spoken for from a diehard Labour supporter. Ignore the last ten years of tax and spend, this is a global problem nothing to do with us.
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I do not vote for Labour, I do not support any particular party.

You seem to be insinuating the all of the problems we are facing are the fault of the Labour party. Can you explain to us all how Labour are responsible for the financial problems in America, Iceland and other European countries please?
 
Scottly said:
Borrowing is a fact of business, in more ways than you might think. Very few companies keep enough cash on hand to pay wages at the end of every month, they borrow the money over a short period (a week or a month or whatever) then pay it back when they get the income from their own sales. If they can't borrow to pay wages then jobs disappear literally overnight.

That's why the rate cut and other things that have happened recently are important - banks refusing to lend very much to each other is a problem for them, but when otherwise financially healthy companies can't get the credit to pay wages then Joe Public loses his job, which affects him, his family, the people he buys goods and services from.

The rate cut isn't so much about helping the banks as it is about stopping the rot from spreading out of the financial sector into the wider economy.
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I am talking about overborrowing, not borrowing. It would be stupid for a business that was pulling in 35k a month profit pay it's staff 40k a month.

Not so much in business but defiantley in the personal finance people have been borrowing more than they can service without discounted re-payment rates. Now the crap has hit the fan the banks have got there fingers burnt.

So in comes the taxpayer to take these problems off their hands.
 
Slinwagh said:
I do not vote for Labour, I do not support any particular party.

You seem to be insinuating the all of the problems we are facing are the fault of the Labour party. Can you explain to us all how Labour are responsible for the financial problems in America, Iceland and other European countries please?
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I agree with you about other countries but I think Labour have massively contributed to the problems in this country.

They've done nothing but put up taxes and make changes which constantly hurt the middle and working classes (which happens to be the majority in the UK). Taxes are going up far faster than wages and benefits.

Something had to give, and now we're staring recession in the face because people have cut their spending.

And don't forget - those who won't/can't cut their spending just take out credit to carry it on. And what happened there?
 
He sold our gold when the gold market was at a 20 year low in terms of price. Right now gold is soaring and has been all year. African states that have major gold mining operations that suffered due to our bumper sale of gold a few years back are now rolling in it and that's one of the key reasons Africa is actually showing 5% growth this year with no sign of recession!

It's nothing to do with America or Iceland. Our gold reserves were all about protecting us. Number one. Instead of taking out huge loans right now he could have sold that gold on the markets instead to raise some cash for our problems...
 
NathanE said:
He sold our gold when the gold market was at a 20 year low in terms of price. Right now gold is soaring and has been all year. African states that have major gold mining operations that suffered due to our bumper sale of gold a few years back are now rolling in it and that's one of the key reasons Africa is actually showing 5% growth this year with no sign of recession!
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So if the gold was not sold there would not be the world's financial crisis?
 
Scottly said:
Borrowing is a fact of business, in more ways than you might think. Very few companies keep enough cash on hand to pay wages at the end of every month
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Then, just like individuals who can't scrape through a month without an overdraft, they were always doomed to fail. That may sound harsh, but it's true. Constantly skating close to the edge of failure is a sign that the business is not working. But in an age of easy, cheap credit that began to look like prudent fiscal management rather than clinging on by your fingertips.

Andrew McP
 
Slinwagh said:
So if the gold was not sold there would not be the world's financial crisis?
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The crisis would still exist except the UK would be in a much better position to weather it out. Instead of being what is increasingly looking like a year of recession and half a decade of reduced growth may have only been a short 2 or 3 quarter recession and a much quicker recovery of just a year or two.
 
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