Credit Crunch

[PFKAKTF FOX]

I have been well stuffed, went to the bank to sort out the mortgage so the former Mrs A-Z could be removed and I could take on the house on my own and continue to pay the current mortgage arrangements, I have asked for no additional borrowing and can demonstrate that I have been meeting all mortgage payments for last 9 months on my own and the ****s want 25k for the privilege, even though it is not a new application. This means I have no alternative but to sell the house and be forced into negative equity ....The Wankers.

 

[Matt_B]

Does anyone on here have or have experience with the mortgage shrinker mortgages or one accounts?

 

[Dickovforengland!]

My rate is 0.7% above the base rate and my April payment will reflect the 0.5% drop. I'm almost getting embarrassed by how small my payments are now. My mate has an interest only tracker which is virtually free now. Doesn't make any sense.

Happy days, must just be Barclays that amend tracker payments annually. My payments are currently calculated on the November 1st 08 base rate of 4.5% and won't be re-calculated until November 1st 09.

Still can't see the point in the rate cut though. My sister is looking to buy a place and its not the rate thats putting her off its the deposit she needs to get a mortgage which the £75 Billion asset purchase is designed to help.

 

[Macky]

My sister is looking to buy a place and its not the rate thats putting her off its the deposit she needs to get a mortgage which the £75 Billion asset purchase is designed to help.

Can somebody who understands these things better than me explain this.
If the BoE just prints off £75 billion to put into your economy, aren't they just effectively devaluing your currency?

 

[Lako42]

Im richer than cyril sneer at the moment, I love the credit crunch, who's idea was it?

 

[Lako42]

Can somebody who understands these things better than me explain this.
If the BoE just prints off £75 billion to put into your economy, aren't they just effectively devaluing your currency?

Do we have any German members on here?

 

[Dickovforengland!]

Can somebody who understands these things better than me explain this.
If the BoE just prints off £75 billion to put into your economy, aren't they just effectively devaluing your currency?

I wouldn't claim a better understanding but that is the risk the BoE have to weigh against the need to get cash moving round the Banks and the rest of the economy.

 

[fcukcov]

Can somebody who understands these things better than me explain this.
If the BoE just prints off £75 billion to put into your economy, aren't they just effectively devaluing your currency?

Yes it can and where it has been tried in the past it has very limited success apparantly.

 

[City Fan]

Yes it can and where it has been tried in the past it has very limited success apparantly.

But what else can they do? They have already lowered interest rates as much as they can.

 

[fcukcov]

But what else can they do? They have already lowered interest rates as much as they can.

I don’t claim to be an expert in any way, shape or form and I wouldn’t know where to start. Im just saying what I have heard/read. Apparently the Japanese tried Quantitative Easing in the earlier 90’s and it didn’t work very well. It will most likely push the inflation rate up as the money gets spread around and spent and I think they are wary of the interest rate going negative and hence why they are trying this.

Its also worth remembering they aren’t actually printing money, just creating it as numbers in a computer system

 

[City Fan]

It will most likely push the inflation rate up as the money gets spread around and spent

Wouldn't that be a good thing at the minute?

 

[PFKAKTF FOX]

I don’t claim to be an expert in any way, shape or form and I wouldn’t know where to start. Im just saying what I have heard/read. Apparently the Japanese tried Quantitative Easing in the earlier 90’s and it didn’t work very well. It will most likely push the inflation rate up as the money gets spread around and spent and I think they are wary of the interest rate going negative and hence why they are trying this.

Its also worth remembering they aren’t actually printing money, just creating it as numbers in a computer system

It is being done to encourage banks to start lending money again.

 

[Steven]

I have been well stuffed, went to the bank to sort out the mortgage so the former Mrs A-Z could be removed and I could take on the house on my own and continue to pay the current mortgage arrangements, I have asked for no additional borrowing and can demonstrate that I have been meeting all mortgage payments for last 9 months on my own and the ****s want 25k for the privilege, even though it is not a new application. This means I have no alternative but to sell the house and be forced into negative equity ....The Wankers.

You will have to do some shopping around. :icon_conf

 

[Lako42]

It is being done to encourage banks to start lending money again.

Banks really do get treated like children don't they.

 

[RHYDAL]

Can somebody who understands these things better than me explain this.
If the BoE just prints off £75 billion to put into your economy, aren't they just effectively devaluing your currency?

Shirley Williams described it as giving the economy a laxative on Question Time last night. Does that help?
I think Germain Greer's assessment was more insightful. 'No-one knows what's going on, not even the experts. The economy doesn't need any more money in it, there was plenty, just no-one knows where it's gone.'

IMO only time will get us out of this. And a long time too. Maybe 5 years. Too much money in the economy was what got us into trouble in the first place and isn't the answer now. Last time we were in this situation, although not to this extent, raising interest rates encouraging saving and discouraging people having credit got us through. Granted it was at the expense of many repossessions which I guess is what the government are trying to avoid now, especially with a general election on the horizon.

The fact remains that too many people have been given credit in amounts which they had no right to. Since 911 an irresponsible attitude of live for today has gripped the western world which polititians have done sweet FA about. A period of belt tightening needs to go on. Sooner it starts, the sooner it will be over. You don't stop a balloon popping by pumping more air into it.

And for Shirley William's benefit, laxative mis-use causes electrolyte imbalances which in extreme cases can be terminal.

 

[Macky]

But what else can they do? They have already lowered interest rates as much as they can.

How about the government using money that already exists?

If your economy is already ****ed, devaluing your currency seems like ****ing madness to me.

 

[drew]

Seems to have not affected currency rates too much at the moment.

 

[RHYDAL]

Further to the above.......the Lady herself in action.

http://news.bbc.co.uk/1/hi/programmes/question_time/7928010.stm

 

[MKFox]

I have been well stuffed, went to the bank to sort out the mortgage so the former Mrs A-Z could be removed and I could take on the house on my own and continue to pay the current mortgage arrangements, I have asked for no additional borrowing and can demonstrate that I have been meeting all mortgage payments for last 9 months on my own and the ****s want 25k for the privilege, even though it is not a new application. This means I have no alternative but to sell the house and be forced into negative equity ....The Wankers.

won't another financial institution be benefiting from your business instead?

 

[PFKAKTF FOX]

won't another financial institution be benefiting from your business instead?

Unfortunately their decision is forcing me to sell and move into rented accomodation. Unlikely to be in a position to buy a property for at least 5 years !!!