Interest Rates to stay Lowwwwww !!!!
12 October 2009, 12:18 PM
#31
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Its highly likely that rate will stay very low for a long time.
There are more people needing low rates rather than high rates and those that think 6 or 7% interest rates are a good idea - if you think things were bad 12 months ago how well do you think things will be when those on 2-3% trackers start getting close to double figures?
And those mindless enough to take out big loans because their mortgage is 50p a month for their new scooby.
Rates can only creep up very slowly to allow people to finance themselves accordingly. A sharp rise will do just as much damage.
And anyway, what are people doing messing about with high street rates - theres a fortune to be made on them there markets. Although its unlikely to last, the recent gains have been fantastic
There are more people needing low rates rather than high rates and those that think 6 or 7% interest rates are a good idea - if you think things were bad 12 months ago how well do you think things will be when those on 2-3% trackers start getting close to double figures?
And those mindless enough to take out big loans because their mortgage is 50p a month for their new scooby.
Rates can only creep up very slowly to allow people to finance themselves accordingly. A sharp rise will do just as much damage.
And anyway, what are people doing messing about with high street rates - theres a fortune to be made on them there markets. Although its unlikely to last, the recent gains have been fantastic
Last edited by EddScott; 12 October 2009 at 12:20 PM.
12 October 2009, 12:25 PM
#32
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Hey I was only going by the news reports earlier this year, quite a few banks have been making profits. And high lending rates were reportedly (amoungst other things) due to LIBOR being high relative to base at the time. Now if LIBOR has reduced and the lending rates haven't by as much then fine, good for them, my underwear is nicely aligned.
I do read the Times though!
I do read the Times though!
12 October 2009, 12:42 PM
#33
12 October 2009, 01:17 PM
#36
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FT.com / Companies / Banks - HSBC chief fears a second downturn
"... Michael Geoghegan, chief executive of HSBC, is so convinced there will be a second downturn in the coming months that he plans to delay any rush to expand the bank.“Is this a V recovery or a W?” Mr Geoghegan asked in an interview with the FT. “[I think] it’s the latter. [If I’m right], we have to be very careful we don’t grow the balance sheet so far before the recovery has come only to write it back into the impairment line later on. I’m cautious about growing too fast.” ..."
And hey, did anyone mention selling gold? Remember when Flash sold it at the bottom of the market, and pre-announced it so the price would drop even further? Well, in the middle of the recession he's going to sell some more stuff off ....
Gordon Brown To Outline Plans to Raise £16bn By Selling Off Government Assets | Politics | Sky News
I'm sure this'll mean an end to boom and bust ....
Dave
12 October 2009, 01:17 PM
#37
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i think the truth is people are making it up as they go along
I wouldn't trust economist tbh, they havn't covered themselves in glory over the past few years
only thing for sure is that people like making money -- and as far as our economy goes the easiest way is to shuffle money around
I wouldn't trust economist tbh, they havn't covered themselves in glory over the past few years
only thing for sure is that people like making money -- and as far as our economy goes the easiest way is to shuffle money around
12 October 2009, 01:39 PM
#39
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Would be great if passed on but doesn't seem to be happening! My wife just got "pre-approved" on a credit card at 51% interest PA with a £15k credit limit 
Also who can afford to lay down a 40% deposit for a new mortgage? No doubt some of the SNet millionaires will say no problem however it is / will be a problem for the majority ...
TX.
Also who can afford to lay down a 40% deposit for a new mortgage? No doubt some of the SNet millionaires will say no problem however it is / will be a problem for the majority ...TX.
12 October 2009, 01:48 PM
#41
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Its highly likely that rate will stay very low for a long time.
There are more people needing low rates rather than high rates and those that think 6 or 7% interest rates are a good idea - if you think things were bad 12 months ago how well do you think things will be when those on 2-3% trackers start getting close to double figures?
And those mindless enough to take out big loans because their mortgage is 50p a month for their new scooby.
Rates can only creep up very slowly to allow people to finance themselves accordingly. A sharp rise will do just as much damage.
There are more people needing low rates rather than high rates and those that think 6 or 7% interest rates are a good idea - if you think things were bad 12 months ago how well do you think things will be when those on 2-3% trackers start getting close to double figures?
And those mindless enough to take out big loans because their mortgage is 50p a month for their new scooby.
Rates can only creep up very slowly to allow people to finance themselves accordingly. A sharp rise will do just as much damage.
It would make sense for those who have money to save loan it to those who want to borrow and cut out the middle man. If they only get 4% saving and the borrower can only get just shy of 8% both would be better off lending between each other at 6%!
Last edited by Bravo2zero_sps; 12 October 2009 at 02:13 PM.
12 October 2009, 02:06 PM
#42
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Whereas I appreciate that banks lend to each other on LIBOR rates, does it not mean that as base rate is 0.5% and banks are lending to us at 7+% they are making more that when base rate was 5%?
12 October 2009, 02:07 PM
#43
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12 October 2009, 08:12 PM
#45
And anyway, what are people doing messing about with high street rates - theres a fortune to be made on them there markets. Although its unlikely to last, the recent gains have been fantastic [/QUOTE]
And as they say Fortune Favours the Brave .
The FTSE slipped to circa 3200 or something only a short while ago .Now its at 5200 !!!!!!!!!!!!!!
If you had the Kahooners to jump on this then well done I say .Big, Big, gains would have been made Im sure .(unfortunately I have not got the knowledge on this so did not take advantage .)
But as most areas in life ,risk taking, can lead to great rewards .Its just how much you can afford to lose that stops most .!!!!!
[/QUOTE]And as they say Fortune Favours the Brave .
The FTSE slipped to circa 3200 or something only a short while ago .Now its at 5200 !!!!!!!!!!!!!!
If you had the Kahooners to jump on this then well done I say .Big, Big, gains would have been made Im sure .(unfortunately I have not got the knowledge on this so did not take advantage .)
But as most areas in life ,risk taking, can lead to great rewards .Its just how much you can afford to lose that stops most .!!!!!
12 October 2009, 08:41 PM
#46
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the rewards looked fantastic and it seems to me that most banks got sucked into this form of banking (after all why wouldn't they), taking their focus away from the boring stuff like high street retail banking.
12 October 2009, 09:04 PM
#47
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But they DON'T do any of that any more, are you signed up to that fact?
The money shuffling, as you put it, is no more, not to any significant degree.
London is no longer the world's financial centre, for better or worse. Bankers bank again, they don't play roulette in the dark.
The money shuffling, as you put it, is no more, not to any significant degree.
London is no longer the world's financial centre, for better or worse. Bankers bank again, they don't play roulette in the dark.
12 October 2009, 09:30 PM
#48
No, i have 20 years left on the mortgage. I am not tied in to any fixed period and can change when ever i want with no penalties.
However i am highly unlikly to get the same deal with another lender anyway so the low interest rate that i have at the moment is sort of restricting me. Let hope i dont need to remortgage any time soon!
However i am highly unlikly to get the same deal with another lender anyway so the low interest rate that i have at the moment is sort of restricting me. Let hope i dont need to remortgage any time soon!
12 October 2009, 09:40 PM
#49
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But they DON'T do any of that any more, are you signed up to that fact?
The money shuffling, as you put it, is no more, not to any significant degree.
London is no longer the world's financial centre, for better or worse. Bankers bank again, they don't play roulette in the dark.
The money shuffling, as you put it, is no more, not to any significant degree.
London is no longer the world's financial centre, for better or worse. Bankers bank again, they don't play roulette in the dark.
And I realise that lots of bankers (and people who just happen to work in banks) have lost jobs and livelihoods in the last year or two (a guy in the village lost 500k in Lehman’s shares – his school fees fund)
I suppose ultimately I think it is neigh on impossible to use reactive instruments like regulation to try and stop proactive activities like making money – which we all agree bankers are very good at. – and will always find a way around any imposed restrictions
I’m note really making a value judgment here – it’s just how I see it working (asset bubbles)
Surely as Banks rapidly build their balance sheets they have no option but to start using the one tangible commodity they have – money, to make money
12 October 2009, 09:53 PM
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Yes exactly, money is the only tool they have. Which is why it sits so uncomfortably with a lot of people, as you can't "make" money out of money without a certain percentage of people seeing it as immoral, whatever the means. Ask Muslims, they invented the interest free mortgage!
But banking of the future - the immediate future at least, really will be back to basics. Whether new loopholes will be exploited it remains to be seen, but i actually doubt you'll see the like of the asset backed fiasco for at least another generation - when the current crop of people in the industry to have moved on and the new blood has no abiding memory of August 2008...
But banking of the future - the immediate future at least, really will be back to basics. Whether new loopholes will be exploited it remains to be seen, but i actually doubt you'll see the like of the asset backed fiasco for at least another generation - when the current crop of people in the industry to have moved on and the new blood has no abiding memory of August 2008...
12 October 2009, 10:02 PM
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12 October 2009, 10:06 PM
#52
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12 October 2009, 10:18 PM
#53
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13 October 2009, 10:11 AM
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13 October 2009, 12:42 PM
#57
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I'll see your
and raise you a However, being one of "those greedy bankers" I'm also at great risk of losing my job soon because you ba$tard taxpayers 'bailed us out'.
13 October 2009, 03:11 PM
#58
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LOL, becuase the people higher than you made choices to suit themselves and to make a quick buck and it blew up in their faces. We, the "Ba5tard Taxpayer" bailed your bosses out and in return, your bosses need to be seen to be "actively working to repay those ba5tard taxpayers" and sadly your for the chop.
I'll give you a for free. 
I'll give you a
for free.
14 October 2009, 09:36 AM
#60
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You could argue that allowing sterling to become devalued against the world economies might make the UK work force seem more attractive for industry. This, hopefully, should ween the UK off its reliance on finance as the major UK industry.
On the bright side if it gets really bad the UK population could migrate to eastern european countries and see how they like it
On the bright side if it gets really bad the UK population could migrate to eastern european countries and see how they like it