tag:blogger.com,1999:blog-2948538160252327076.post3019417845951013628..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: Alice's rate cut bubble wrapAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2948538160252327076.post-21233150788750868682008-10-09T13:03:00.000+01:002008-10-09T13:03:00.000+01:00Clearly the current system is busted. Isn't THE pr...Clearly the current system is busted. Isn't THE problem, the consumer? We need to scale down what we do, what we consume, and rebuild the system in a more sustainable model.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-83255459913239984212008-10-08T23:31:00.000+01:002008-10-08T23:31:00.000+01:00Fed, ECB, BOE, PR China and others - central banks...Fed, ECB, BOE, PR China and others - central banks rate cuts in unison. Wheeee! This is more exciting than co-ordinated muff diving.<BR/><BR/>How long before we get a single currency for our one world? So much easier darling.<BR/><BR/>A DavidAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-74926705388499341672008-10-08T20:43:00.000+01:002008-10-08T20:43:00.000+01:00Re balance sheet of the Fed, what would be much mo...Re balance sheet of the Fed, what would be much more interesting is a comparison between the amounts that the BoE/Treasury is lending to UK banks and the amounts that they in turn are depositing with the BoE/Treasury.<BR/><BR/>AFAIAA, the BoE/Treasury makes a handsome turn on the interest rate margin. What good commercial reason is there for the BoE/Treasury to cut the interest rate that they charge the banks by 0.5%?<BR/><BR/>It's not like the banks will pass on the cut - the market rate for household or business borrowing is what it is, the cost of funding is irrelevant, unless the cost of funding exceeds the interest rate that households and businesses will pay, in which case lending stops stone dead in its tracks.<BR/><BR/>"Pushing a piece of string" is what this is called, which was vote for by 1% of people in the fun online poll in your sidebar (I've already called the result on my 'blog).Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-65122109588805973832008-10-08T19:53:00.000+01:002008-10-08T19:53:00.000+01:00Easing interbank rates, that is interesting.....Easing interbank rates, that is interesting.....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-29681866393312430472008-10-08T19:50:00.000+01:002008-10-08T19:50:00.000+01:00The rate cut was dead on arrival.The rate cut was dead on arrival.Anonymousnoreply@blogger.com