Mortgage annoyance!

[benb]

Indeed. I'm still not sure that I fully understand the logic. The western world is in crisis because it has been too easy to obtain credit ... why should the 'fix' be a reduction of interest rates - designed to encourage borrowing.

I think that interest rates should have been doubled, then I could have lived in an even better style to that with which I've become accustomed!

The world will be in a very bad state, much worse than now, if interests rates were doubled etc. The aim is to escape a deep recession (& depression) and yet encourage people to save and pay off bad debts. Its tough to get the balance without some sacrifices. If we punish the banks and people, it will only make matters worse. Its true that savers are in a way helping the people in debt, but for instance, if a company goes bust, both savers and bad debt people will suffer.

We will be doomed for a good number of years if we go into deflation, so *most* of the steps taken now are justified.

This is the time where people work harder, retrain, surviving companies optimise their business operations etc, which in the long run will benefit us all (i.e. stronger economy and currency etc).

[PeterB]

...encourage people to save and pay off bad debts.

Okay, I'm not an economist, but I thought that increasing interest rates might achieve those aims.

I have no debts, but reducing interest rates certainly isn't encouraging me to save!

[benb]

Okay, I'm not an economist, but I thought that increasing interest rates might achieve those aims.

I have no debts, but reducing interest rates certainly isn't encouraging me to save!

Increasing interests rates too much too fast will damage the economy as there is too much debt. You increase interests rate to curb inflation. Now that people have reduced spending far too much and house prices crashing fast, interests rates need to be reduced to ensure that we do not go into deflation (which can lead to millions of job losses, depression, declining GDP etc).

There needs to be more savers like you and that cannot happen overnight - need to pay off debts first!. Lowering interests rate does not benefit the savers, but you have already gained when you sold off your properties at peak prices, high interests returns etc. There are always winners and losers in any market. Those who gambled on Gold are celebrating now. Those who gambled on real estate are probably suffering from depression.

The government needs to do more to create a balance. More programmes are required to encourage saving in the long run, prevent crazy lending, tight control on bank securities etc.

Cheers

[KeithD]

Gordon is now going for Bailout II

All his other ideas have FAILED

This run is the same as a losing run in betting, if everything was working pretty well before hand, then it sorts itself out in the end, you do nothing, and just carry on doing what you usually do. The thing you DO NOT do in a betting losing run is start changing things....that is called PANIC...and makes this worse. ....aka...we now have £Billions of debt we have to pay back with higher taxes, and the results? Bugger all

[somebody]

I was yesterday with my CEO and was at a Lunch followed by a meeting with a lot of people who earn way to much and run large companies and organsations in various sectors.

One snipet from convo stood out from a gentleman we would all know on sight from the media. He said that he felt that this was such a big issue that it should be put on a par with a world war or international disater! That the British goverment ideally should have brought in at cabinet level people required for the job regardless of party background.
Other quotes i heard from very level headed experienced people was that the Last rescue was to small and all involved knew this.

As we all have heard in the media Barclays and HSBC made wrong moves along with JP morgan and many more.

The companies are worried as they know in the long run huge super banks will emerge who will be way to powerful for any country to regulate.

Mr Admin Boss so very true that also is all i hear from anyone who comes from the city, I mean most of them are just professional gamblers if you take the title away.

Brown due to beliving his own hype and the fact most people were so happy that the problem like a overdue bill was staved off and hidden in the drawer out of site. Problem is the default bill still has to be paid off.


The whispers from the City and mayfair (where the hedge funds and rich bods banks are) I have heard that the media is downplaying the worst of it. Some of the problems are so bad they would have people queueing at the bank. They of course is no need to take out your money good ol gordon will put any losses on tic for your Grandchildren to worry about.

[somebody]

The world will be in a very bad state, much worse than now, if interests rates were doubled etc. The aim is to escape a deep recession (& depression) and yet encourage people to save and pay off bad debts. Its tough to get the balance without some sacrifices. If we punish the banks and people, it will only make matters worse. Its true that savers are in a way helping the people in debt, but for instance, if a company goes bust, both savers and bad debt people will suffer.

We will be doomed for a good number of years if we go into deflation, so *most* of the steps taken now are justified.

This is the time where people work harder, retrain, surviving companies optimise their business operations etc, which in the long run will benefit us all (i.e. stronger economy and currency etc).

THe low intrest rates I have heard from several sources is actually hitting the banks. many companies big and small also keep reserves which are all being hit as well by low intrest rates.

Sorry but if your being tough no nonsense trying to look long term for the country. Many people lied and took on too big a mortage, lied to get loans and credit cards. If people are let off the cycle will happen again. The UK needs to cleanse its system of bad debt and a lot of it is held by the public. These people signed agreeing to repay the debt and were aware things could go up or down surely? Many who too were trying to play the market and were "investing".

I know many took on large moratges due to thats what they needed to buy a propety, but they could have rented surely?

The country is also in a state where this summer where nearly all your purchases will be 30 percent higher. Due to the exchange rates, if you think a lot of retail operations have gone now then be prepared, for when they just cant afford to buy enough stock. Many Retail operations are going into admin so the owners can get out while the going is not to bad. Those that do carry on will in many cases buy less variety of stock and safe bets. With margin very low already how will they find any profit?

We will have stronger companies due to the sheer lack in numbers. Where will the competion come from? Many business leaders are very worried about what this means for business and for the general public. Creating new banks which can compete with the superbanks which will emerge will be very very hard.

Many of our exports come from the City and other finance companies. What will replace this with? How will the country keep the books balanced? The goverment cant have everyone working for the state surely?

Deflation is only bad if you own money and would wipe out the UK due to the incompentce that Brown has shown in the last ten years. In the good years we spent to much and didn't set aside enough for now.

My Self as a saver and with no major loans or mortages would be laughing. Many pensioners who saved and went with out to provide for their futures would be in good shape.

The only people who suffer are those who own to others. But as the goverment are the worst Inflation is now their goal to reduce the amount they owe. Which will punish all those who were sensible and careful with their money.

Sorry saving a few quid a month on tracker mortages, which is good news for good people like your self isn't really going to save the nation imo.
The goverment say your go out and spend it in the shops well possibly but only if you need it most likely it will go towards debt reduction or to savings.

[benb]

THe low intrest rates I have heard from several sources is actually hitting the banks. many companies big and small also keep reserves which are all being hit as well by low intrest rates.

Sorry but if your being tough no nonsense trying to look long term for the country. Many people lied and took on too big a mortage, lied to get loans and credit cards. If people are let off the cycle will happen again. The UK needs to cleanse its system of bad debt and a lot of it is held by the public. These people signed agreeing to repay the debt and were aware things could go up or down surely? Many who too were trying to play the market and were "investing".

I know many took on large moratges due to thats what they needed to buy a propety, but they could have rented surely?

The country is also in a state where this summer where nearly all your purchases will be 30 percent higher. Due to the exchange rates, if you think a lot of retail operations have gone now then be prepared, for when they just cant afford to buy enough stock. Many Retail operations are going into admin so the owners can get out while the going is not to bad. Those that do carry on will in many cases buy less variety of stock and safe bets. With margin very low already how will they find any profit?

We will have stronger companies due to the sheer lack in numbers. Where will the competion come from? Many business leaders are very worried about what this means for business and for the general public. Creating new banks which can compete with the superbanks which will emerge will be very very hard.

Many of our exports come from the City and other finance companies. What will replace this with? How will the country keep the books balanced? The goverment cant have everyone working for the state surely?

Deflation is only bad if you own money and would wipe out the UK due to the incompentce that Brown has shown in the last ten years. In the good years we spent to much and didn't set aside enough for now.

My Self as a saver and with no major loans or mortages would be laughing. Many pensioners who saved and went with out to provide for their futures would be in good shape.

The only people who suffer are those who own to others. But as the goverment are the worst Inflation is now their goal to reduce the amount they owe. Which will punish all those who were sensible and careful with their money.

Sorry saving a few quid a month on tracker mortages, which is good news for good people like your self isn't really going to save the nation imo.
The goverment say your go out and spend it in the shops well possibly but only if you need it most likely it will go towards debt reduction or to savings.

Everyone suffers to some extend, unless you have plenty of money and don't need a job. Its not just about tracker rates, its about having credit available to everyone at an affordable rate.

ok, have you got a better solution than what the governments around the world are doing?
I don't see any other feasible way to avoid a serious recession and possibly a depression.