Christmas Tree 4669 Posted March 5, 2009 Share Posted March 5, 2009 We all know the management at NUFC are clueless, but do these fuckers running the country actually have a clue how to sort this mee out or are they just fumbling in the dark. Link to comment Share on other sites More sharing options...
Meenzer 15347 Posted March 5, 2009 Share Posted March 5, 2009 The most rhetorical of rhetorical questions, I hope. It's just pitiful. Link to comment Share on other sites More sharing options...
Rob W 0 Posted March 6, 2009 Share Posted March 6, 2009 no-one has a clue the general scheme seems to try and print enough cash so that firms won't go under and hopefully it will all turn round then we'll sort out whatever problems of inflation etc etc occur when they happen Link to comment Share on other sites More sharing options...
trophyshy 7066 Posted March 6, 2009 Share Posted March 6, 2009 smacks of desperation like. hocking your wedding ring for one last flutter at the tourette wheel Link to comment Share on other sites More sharing options...
Guest alex Posted March 6, 2009 Share Posted March 6, 2009 Why doesn't the Bank of England lend this money directly to individuals and small businesses etc.? Probably a daft question but the banks have already been bailed out and they still won't lend people money. Now the interest rate has come down again and they've done this to try and cajole the toe-rags into freeing up some credit. Cut the middle man out. Link to comment Share on other sites More sharing options...
NJS 4355 Posted March 6, 2009 Share Posted March 6, 2009 Why doesn't the Bank of England lend this money directly to individuals and small businesses etc.? Probably a daft question but the banks have already been bailed out and they still won't lend people money. Now the interest rate has come down again and they've done this to try and cajole the toe-rags into freeing up some credit. Cut the middle man out. They should use Northern Rock or set up a new bank - the BOE itself is not a retail bank. NR giving out 2% mortgages would soon get the other fuckers moving. These measures sort of worked in Japan though some argue other factors made it look as if they worked. Link to comment Share on other sites More sharing options...
Meenzer 15347 Posted March 6, 2009 Share Posted March 6, 2009 Japanese house prices are still depressed as hell compared with their ridiculous peaks, though - and since this government cares more about house price inflation than any other supposed benchmark of economic performance, we'd still be fucked. Link to comment Share on other sites More sharing options...
ChezGiven 0 Posted March 6, 2009 Share Posted March 6, 2009 Keynes will be turning in his grave. Link to comment Share on other sites More sharing options...
manc-mag 1 Posted March 6, 2009 Share Posted March 6, 2009 smacks of desperation like. hocking your wedding ring for one last flutter at the tourette wheel "Everything on 22, shitty cunt-flaps, wanker". Link to comment Share on other sites More sharing options...
Park Life 71 Posted March 6, 2009 Share Posted March 6, 2009 Best time to start a bank. Link to comment Share on other sites More sharing options...
Douggy B 0 Posted March 6, 2009 Share Posted March 6, 2009 I suppose it is the best time to do it when we are in a period of deflation with interest rates at an all time low. The other issue is the devaluation of the currency, the government has borrowed money from all over to pay for this stimulus. If the pound is worth nothing how do they expect to pay that back? Its hard to see a way out of this at the moment. Link to comment Share on other sites More sharing options...
trophyshy 7066 Posted March 6, 2009 Share Posted March 6, 2009 smacks of desperation like. hocking your wedding ring for one last flutter at the tourette wheel "Everything on 22, shitty cunt-flaps, wanker". Link to comment Share on other sites More sharing options...
Christmas Tree 4669 Posted March 6, 2009 Author Share Posted March 6, 2009 I suppose it is the best time to do it when we are in a period of deflation with interest rates at an all time low. The other issue is the devaluation of the currency, the government has borrowed money from all over to pay for this stimulus. If the pound is worth nothing how do they expect to pay that back?Its hard to see a way out of this at the moment. They dont, they wont be here Link to comment Share on other sites More sharing options...
Douggy B 0 Posted March 6, 2009 Share Posted March 6, 2009 I suppose it is the best time to do it when we are in a period of deflation with interest rates at an all time low. The other issue is the devaluation of the currency, the government has borrowed money from all over to pay for this stimulus. If the pound is worth nothing how do they expect to pay that back?Its hard to see a way out of this at the moment. They dont, they wont be here To be honest I can see the other lot being in longer if this is as bad as it seems. Link to comment Share on other sites More sharing options...
Matt 0 Posted March 6, 2009 Share Posted March 6, 2009 Why doesn't the Bank of England lend this money directly to individuals and small businesses etc.? Probably a daft question but the banks have already been bailed out and they still won't lend people money. Now the interest rate has come down again and they've done this to try and cajole the toe-rags into freeing up some credit. Cut the middle man out. The BoE cannot lend directly. The government have effective control over two large banks and two core mortgage lenders- they can implement broad policy through these institutions who already have all the myriad of systems needed to manage millions of transactions every day. I disagree with this overriding notion that 'banks aren't lending people money', though that is clearly popular sentiment. Towards the end of last year most UK banks were either bust or very close to being bust, so couldn't lend and desperately needed deposits to shore up their reserves which were set for a pounding with bad debts much higher than anticipated. It will take a while to go from complete lock-up to become truly fluid again- deals are now being done and the system is running, albeit tentatively. Banks certainly shouldn't be lending people money on the same basis as in the past, which totally underpriced risk, but individuals and businesses with the right credentials can certainly access credit. The double whammy for the UK is that foreign lenders have legged it and there simply isnt the capacity within the UK sector to fill that gap entirely, even with government assistance. The killer is that banks are de-leveraging (as the whole economy will have to in due course) and this is a painful process. For every £1 deposited, maybe 5p was reserved and 95p lent on, the next bank did the same to the extent that you end up with close to £20 in the system from that £1 deposit. Now that those reserves have shown inadequate, banks are reserving more of their capital so that they are more resilient to economic cycles (as they clearly were not this time last year). As a result, there is less money in the economy and hence the printing of money from the BoE, which they hope will allow the financial institutions to stabilise their own debt levels while carefully reducing the levels of debt in the wider economy. It's a bit like financial methodone, we just have to hope that we get clean and not hooked to the substitute. Link to comment Share on other sites More sharing options...
Guest alex Posted March 6, 2009 Share Posted March 6, 2009 Why doesn't the Bank of England lend this money directly to individuals and small businesses etc.? Probably a daft question but the banks have already been bailed out and they still won't lend people money. Now the interest rate has come down again and they've done this to try and cajole the toe-rags into freeing up some credit. Cut the middle man out. The BoE cannot lend directly. The government have effective control over two large banks and two core mortgage lenders- they can implement broad policy through these institutions who already have all the myriad of systems needed to manage millions of transactions every day. I disagree with this overriding notion that 'banks aren't lending people money', though that is clearly popular sentiment. Towards the end of last year most UK banks were either bust or very close to being bust, so couldn't lend and desperately needed deposits to shore up their reserves which were set for a pounding with bad debts much higher than anticipated. It will take a while to go from complete lock-up to become truly fluid again- deals are now being done and the system is running, albeit tentatively. Banks certainly shouldn't be lending people money on the same basis as in the past, which totally underpriced risk, but individuals and businesses with the right credentials can certainly access credit. The double whammy for the UK is that foreign lenders have legged it and there simply isnt the capacity within the UK sector to fill that gap entirely, even with government assistance. The killer is that banks are de-leveraging (as the whole economy will have to in due course) and this is a painful process. For every £1 deposited, maybe 5p was reserved and 95p lent on, the next bank did the same to the extent that you end up with close to £20 in the system from that £1 deposit. Now that those reserves have shown inadequate, banks are reserving more of their capital so that they are more resilient to economic cycles (as they clearly were not this time last year). As a result, there is less money in the economy and hence the printing of money from the BoE, which they hope will allow the financial institutions to stabilise their own debt levels while carefully reducing the levels of debt in the wider economy. It's a bit like financial methodone, we just have to hope that we get clean and not hooked to the substitute. I suspected I'd oversimplified things Cheers. Interesting read that. Link to comment Share on other sites More sharing options...
trophyshy 7066 Posted March 6, 2009 Share Posted March 6, 2009 Nationwide just given me £25k - the FOOLS! Link to comment Share on other sites More sharing options...
Meenzer 15347 Posted March 6, 2009 Share Posted March 6, 2009 Towards the end of last year most UK banks were either bust or very close to being bust, so couldn't lend and desperately needed deposits to shore up their reserves which were set for a pounding with bad debts much higher than anticipated. Decent interest rates to encourage saving, anyone? (I know, I know, it's not that simple...) Link to comment Share on other sites More sharing options...
Billy Whitehurst 885 Posted March 6, 2009 Share Posted March 6, 2009 Towards the end of last year most UK banks were either bust or very close to being bust, so couldn't lend and desperately needed deposits to shore up their reserves which were set for a pounding with bad debts much higher than anticipated. Decent interest rates to encourage saving, anyone? (I know, I know, it's not that simple...) It's not that simple but it's still a good point. We're in this mess due to massive overleveraging. However, those of us didn't do this and saved are now being fucked over with almost non-existent interest rates. Link to comment Share on other sites More sharing options...
Park Life 71 Posted March 6, 2009 Share Posted March 6, 2009 Buy gold. Link to comment Share on other sites More sharing options...
snakehips 0 Posted March 6, 2009 Share Posted March 6, 2009 Buy gold. Isn't it too late for that? Last time I looked it was close to it's record level. Open a pawnbrokers. That's where to make some money. Link to comment Share on other sites More sharing options...
trophyshy 7066 Posted March 6, 2009 Share Posted March 6, 2009 spoke too soon there despite verbal and written offers of the loan they have just now pulled it because the property is empty. erm, isn't that the best time to get renovations done? The girl who was sorting it out for me is gutted, she suggested I wait a few weeks and then LIE that there is someone living there. Christ on a fucking unicycle! I thought I was doing everyone a favour, but fuck you all I am now doing NOTHING for the economy. Going to drink that fucking disgusting cider in the back of the cupboard tonight to spite you all. Link to comment Share on other sites More sharing options...
Matt 0 Posted March 6, 2009 Share Posted March 6, 2009 We're in this mess due to massive overleveraging. However, those of us didn't do this and saved are now being fucked over with almost non-existent interest rates. Democracy- it's not about being right, it's about being in a voting majority. Link to comment Share on other sites More sharing options...
Fop 1 Posted March 6, 2009 Share Posted March 6, 2009 We're in this mess due to massive overleveraging. However, those of us didn't do this and saved are now being fucked over with almost non-existent interest rates. Democracy- it's not about being right, it's about being in a voting majority. This is why Fop's benevolent dictatorship is the only reasonable solution. Link to comment Share on other sites More sharing options...
trophyshy 7066 Posted March 6, 2009 Share Posted March 6, 2009 We're in this mess due to massive overleveraging. However, those of us didn't do this and saved are now being fucked over with almost non-existent interest rates. Democracy- it's not about being right, it's about being in a voting majority. This is why Fop's benevolent dictatorship is the only reasonable solution. click click gibber gibber Link to comment Share on other sites More sharing options...
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