Bank of England cuts interest rate
- Thread starter Cosimo
- Start date
Soldato
http://business.timesonline.co.uk/tol/business/markets/china/article695733.ece
Keep in mind while reading that that China was the country which bought the majority of the gold that we sold...
Keep in mind while reading that that China was the country which bought the majority of the gold that we sold...
Soldato
Because Labour needed cash to fund people on the dole and benefits. And they didn't think, in their wildest dreams, that they would still be in power by the time the next recession hit.
If that's what you think then you don't know much about business at all. It's a very risky strategy to keep on hand large amounts of cash, because it leaves you more open to shareholder rebellion as they demand larger dividends, and hostile takeover.
Cash sat in a bank account waiting for month end is cash that isn't earning you money. It's far better to invest it into your business or someone else's, such that it earns a return for you. Just about every sound business in the world takes this approach, one of the main exceptions until recently was Microsoft. They were too big and powerful for anyone to mount a hostile takeover, but they've recently used all their excess cash to initiate a stock buy back and authorised a line of credit for running expenses, because it's more profitable that way.
And in America at least, it's illegal for the board of a company to not take an opportunity to maximise shareholder return.
I see. I figured it would be something like that.
He sold off the gold to buy euro's instead didn't he?
That didn't make much sense unless there is a very real plan in the future iresspective of public support that we will join the EU single currancy.
Anyway NathanE is very much right in that the money was used to fund "public services", also probably the war in iraq was taking a hit on the countries pocket too.
Slinwagh, you have a very bank manager type take on the situation. The current measure is only going to tide this over for a while, also soften the blow that will come next.
1. Houseing market is still very, very, very over-valued. This is gonna crach big time
2. We are a nation that loves to live on credit. We the taxpayer are giving the banks money, so they can give us that money back at interest, beautiful isn't it. This will not be enough thou, people are simply not going to spend as much as the retail sector needs it too for everyones survival.
That didn't make much sense unless there is a very real plan in the future iresspective of public support that we will join the EU single currancy.
Anyway NathanE is very much right in that the money was used to fund "public services", also probably the war in iraq was taking a hit on the countries pocket too.
Slinwagh, you have a very bank manager type take on the situation. The current measure is only going to tide this over for a while, also soften the blow that will come next.
1. Houseing market is still very, very, very over-valued. This is gonna crach big time
2. We are a nation that loves to live on credit. We the taxpayer are giving the banks money, so they can give us that money back at interest, beautiful isn't it. This will not be enough thou, people are simply not going to spend as much as the retail sector needs it too for everyones survival.
Permabanned
What narks me is the CEO of Lehman's, Richard Fuld took $300 million USD in bonus and pay during his 8 years in charge.
The day before Lehman's collapsed he was still trying to negotiate multi million dollar bonuses for other executives.
The day before Lehman's collapsed he was still trying to negotiate multi million dollar bonuses for other executives.
Soldato
About 10-15% has come off the housing market this year so far. In real terms though it's deflated by 30%. It will keep falling until it reaches this figure too... unless something amazing happens which is not likely.
So do you support the bail-out?
We will never learn, I think Communism style mangers would be better than I make £8million and still get the sack, it does not work like that down the ladder so why should it work like that at the top, the higher you go the harder the fall, instead you have people earning £13k a year and losing there jobs in areas already hit with mass unemployment.
He also got assaulted by a former employee the day after the Lehman disaster. He was running on a treadmill in a gym, the other guy saw him and punched him out cold.
But thats just bringing house prices down, many inflated with laughable estate agent valuation due to a boom around 2000-2004 and easy remortgage deals pushing up the price of said house because of the capital. Not the actual value that its a home not a investment,
Soldato
Guess where the US is funding most of its recovery package from?
Yep.. gold.
Source: http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=173208
The UK on the other hand is posting up "WANTED: £50bn, will pay handsomely!" advertisements.
Yep.. gold.
Source: http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=173208
The UK on the other hand is posting up "WANTED: £50bn, will pay handsomely!" advertisements.
Permabanned
In all honest I don't understand everything that is going on, but I think it is fair for anyone to say that something had to be done.
Soldato
Yep. For many years there was a secret "I have a friend that has a friend which knows an estate agent who will gladly value this house you want to sell at a much higher price than anyone else..." trade going on. Hell a former employee of ours that had an interest-only portfolio of properties he was buy-to-let'ing was asking the company to artificially inflate his salary so he could get even bigger mortgages.
Soldato
- Joined
- 17 Mar 2004
- Posts
- 8,259
glad I have a tracker mortgage 
What you going to pay the cheaper loan off with if you lose your job
Well, part of the point of this move is to try and prevent that happening
A long overdue move by the bank of england, should have been done at least 2 or 3 months ago.