Credit Crunch

[Darth Vodka]

But the rate cut is not about the banking shambles, it's a feeble attempt to stimulate demand

And it won't make an ounce of difference

it is about the shambles, they'd keep it high otherwise

 

[MKFox]

But how much of the cut will get passed down though?

 

[homer]

and send inflation spiralling...

Inflation (demand led) will drop like a stone if the economy continues to shrink - plus oil prices are on their way down

I betcha we could handle a much bigger cut than half a per cent without it going back up

 

[highland fox]

Inflation (demand led) will drop like a stone if the economy continues to shrink - plus oil prices are on their way down

I betcha we could handle a much bigger cut than half a per cent without it going back up

Yeah Yeah Yeah..Yadda Yadda Yadda:icon_roll

Blanche or Emily Bishop and you have got to ?

 

[homer]

Yeah Yeah Yeah..Yadda Yadda Yadda:icon_roll

Blanche or Emily Bishop and you have got to ?

It's always been Emily, and you feckin' know it

 

[highland fox]

At least Pat has got some good fun bags to play with

With Dot it's just a pair of empty floppy Wombles' noses. Not nice

Is that due to inflation

 

[homer]

What about Pete Beale - he'd certainly get my liquidity flowing again

You hideous, foul little man

 

[Darth Vodka]

Inflation (demand led) will drop like a stone if the economy continues to shrink - plus oil prices are on their way down

I betcha we could handle a much bigger cut than half a per cent without it going back up

depends if wanker utility companies and oil companies pass the savings onto consumers...

but broadly, i agree

 

[highland fox]

Doesn't get any work does he the bloke who played Pete Beale,never see him in anything these days...hardly surprising though.I quite liked Mary the Punk

 

[bocadillo]

As I said to DF yesterday, if I won't lend to you at 5% because I am not certain about you or the assets you own, why would I lend to you at 4%.

But isn't this whole problem, at least partly, as a result of banks lending to just such people and on the strength of just such assets. Isn't that what sub-prime means?

 

[Darth Vodka]

As I said to DF yesterday, if I won't lend to you at 5% because I am not certain about you or the assets you own, why would I lend to you at 4%.

because you're under threat from congress to increase loans to minorities...so they can own houses

:icon_eek:

 

[Biffa Bacon]

What about used cars? I understand they have dropped no end of late.

My Saab p/ex value has dropped from 9k a few months ago to the 6k I'm getting on Friday, nobody is buying cars (except divs like me) so the value of used cars is on the floor.

 

[Spanky Fox]

So from yeserday, how are the mortgages looking? i heard thier was a fix in the market, i am going to see mortgage advisiors on friday, i think the market isn't that bad over here as it is in the UK

 

[Chuck T Masala]

Bank's are wary of lending money to each other, theres plenty of money in the system, its just not being 'sold' and utilised for personal lending. If a bank has to pay high interest to another bank to borrow money, its not able to construct and sell competitive products to the consumer and make a reasonable profit on the deal.

Too many banks (UK and abroad) and other institutions lent money at low loan to value ratio's and with too high salary multipliers. Products were complex and short term. They bought debt as a commodity and hoped to make money from the interest income or by selling it on as subordinated debt. Defaults by people who couldnt affort the loan/debt in the first place scuppered that idea

If they don't lend much then growth is restricted or halted. Its not just consumer confidence its banking confidence too. Tough times ahead methinks, 2009 will be a difficult year for lending, pay rises, growth, house prices, strikes and business confidence.

Or it may be something else, probably aliens or a Bush conspiricy or summat.

 

[pork pie fox]

http://uk.biz.yahoo.com/07102008/404/pound-50-billion-british-bank-bailout.html

Bit of a summary from Yahoo

Icesave savings guaranteed apparently Fitz

(haven't looked into the details, just read it quickly so there may be more detail to it all)

 

[highland fox]

Bank's are wary of lending money to each other, theres plenty of money in the system, its just not being 'sold' and utilised for personal lending. If a bank has to pay high interest to another bank to borrow money, its not able to construct and sell competitive products to the consumer and make a reasonable profit on the deal.

Too many banks (UK and abroad) and other institutions lent money at low loan to value ratio's and with too high salary multipliers. Products were complex and short term. They bought debt as a commodity and hoped to make money from the interest income or by selling it on as subordinated debt. Defaults by people who couldnt affort the loan/debt in the first place scuppered that idea

If they don't lend much then growth is restricted or halted. Its not just consumer confidence its banking confidence too. Tough times ahead methinks, 2009 will be a difficult year for lending, pay rises, growth, house prices, strikes and business confidence.

Or it may be something else, probably aliens or a Bush conspiricy or summat.

Indeed Chuck indeed but I feel I must ask you the all important question.....Mo Slater or Peggy Mitchell and you have got to

 

[bocadillo]

Icesave savings guaranteed apparently Fitz

They were already guaranteed up to £50,000; now all guaranteed for UK residents.

All Landsbanski (IceSave) assets in the UK have been frozen by the UK government.

 

[Darth Vodka]

All IceSave assets in the UK have been frozen

 

[Chuck T Masala]

Indeed Chuck indeed but I feel I must ask you the all important question.....Mo Slater or Peggy Mitchell and you have got to

Feck HF, on message as always. Mo Slater but no kissing just the shag bit OK? :icon_bigg

 

[fitz]

They were already guaranteed up to £50,000; now all guaranteed for UK residents.

All Landsbanski (IceSave) assets in the UK have been frozen by the UK government.

The big scare at first was that the £50k was guaranteed by two governments, one of which who had the lower section of the guarantee refused to back the scheme it promises.

Now its all secured I'm not too fussed with the three month wait, means christmas can feck off out of the way before I can start thinking of a move. I can imagine that due to the £50k limit and the evidence that the FSCS is there and could have to come into please, that people may want a maximum £50k in each banking organisation which could reduce many banks and building societies savings books....could be a busy time for all. including the savers who have to get their one single account spread into 20 etc.