tag:blogger.com,1999:blog-2948538160252327076.post2406007438459965989..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: BoE keeps rates constantAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2948538160252327076.post-80599434543094719142008-07-11T14:38:00.000+01:002008-07-11T14:38:00.000+01:00markbaldy: Spot on analysis of the UK economic sit...markbaldy: Spot on analysis of the UK economic situation. Could someone tell Gordon?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-33754608517440472362008-07-11T13:42:00.000+01:002008-07-11T13:42:00.000+01:00Reply to Nick... No it was not a ref to your comme...Reply to Nick... No it was not a ref to your comment - all my own opinions.<BR/>The BOE rate seems to be pretty meaningless anyway as banks set whatever rate they want for savers and borrowers - depending on what level of risk they want and how desperate they are for funds.<BR/>They are in fact doing the BOE's job for them - the BOE/MPC are a weak set of jobsworths influenced by a government that is incapable of steering a trolley through Tesco's, never mind steering the UK through difficult times...the sma government that steered us into the mess actually !Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-55738444201623944022008-07-11T12:26:00.000+01:002008-07-11T12:26:00.000+01:00markbaldy,dunno if that was a reference to my comm...markbaldy,<BR/><BR/>dunno if that was a reference to my comment, but I agree the consumer won't spend their way out. The point of keeping interest rates low is to stop the banks defaulting on their loans to each other.<BR/><BR/>NickAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-1127838683114506262008-07-11T10:35:00.000+01:002008-07-11T10:35:00.000+01:00Mark,Me? make a mistake, that could never be! More...Mark,<BR/><BR/>Me? make a mistake, that could never be! <BR/><BR/>More seriously, it vaguely remember that I had to turn the data backwards to generate the chart (i.e sort it). <BR/><BR/>I will look at it again, and if I did make a mistake, I will of course repost and correct it. I will take a look at the data again in a few days.<BR/><BR/>AliceAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-28042268679062804552008-07-11T10:20:00.000+01:002008-07-11T10:20:00.000+01:00Alice, re your comment at mine, the Table you used...Alice, re your comment at mine, the Table you used is number 1.9 (I think). <BR/><BR/>On this basis, your original Nequity-o-meter was slightly wrong - your chart shows a straight line, but there is in fact a significant kink. i.e. a 30% fall in prices (another 20% to go!) means that only about 15% of mortgagors are in Nequity, as opposed to 30%, which your chart implied.<BR/><BR/>Any more than 30%, then the shit really hits the fan!Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-75056319977204085432008-07-11T10:12:00.000+01:002008-07-11T10:12:00.000+01:00There is no way that by keeping interest rates low...There is no way that by keeping interest rates low, consumers will spend their way out of a recession... simple maths should tell anyone that after paying their taxes, food bills, energy bills and just getting to work, there is no money left. (Something Gordon Brown should do is to take a GCSE maths course!)<BR/>An economy that is based on borrowing IS NOT SUSTAINABLE, we need to actually start earning a living by making stuff and exporting it rather than passing the same money around between us for services and borrowing the rest to fund champagne lifsetyles.<BR/>The UK has had a party for the last 12 years or so and now it is time for the hangover and to pay for it.<BR/>God knows what could bring the UK out of recession this time ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-83685969711777674052008-07-11T09:35:00.000+01:002008-07-11T09:35:00.000+01:00Alice,Interesting comment. I too think the BoE dro...Alice,<BR/><BR/>Interesting comment. I too think the BoE dropped their bottle but I think total meltdown in the banking system is a bigger threat than price rises on oil and food.<BR/><BR/>Putting the rate up would aid the pound (and thus prices hit by the oil bubble) but wouldn't affect inflation. It might accelerate the deflation, which would be a good thing so long as there's no systemic collapse.<BR/><BR/>King is between a rock and a hard place so I think doing nothing isn't such a bad move.<BR/><BR/>NickAnonymousnoreply@blogger.com