midlandslad
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how high does everyone think they will move the base rate to control inflation?
The BofE think neutral is 1.5% to 2%
The BofE think neutral is 1.5% to 2%
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Demand is always high in a rising market. Once you get that inflection point suddenly no one wants 3 houses.Some are saying that due to high demand we won't see a crash but just because someone wants a house if they can't get a mortgage due to high interest rates then their demand is worth nothing.
Reverse course and start again, will we see digital currency and negative rates?
No idea but with everyones so leveraged up compared to 40 years ago when inflation was this high I doubt they will need to push them nearly as high to soak up the excess money in the system.how high does everyone think they will move the base rate to control inflation?
The BofE think neutral is 1.5% to 2%
NoI dunno.
Macroeconomics is different. The cost of not keeping bad banks afloat could have been more if a lot of people lost life savings etc.
No, Gordon Browns motives were not solid.While the money printing after 08 was bad, it is really lost in the noise compared with the last couple of years. The last couple of years were driven by Rishis policy of furlough payments. The BoE had no option but to buy back government bonds as there was no one else ti buy them at the rate Rishi has been selling them. He is Gordon Brown incompetent x 10. And while Gordon Browns motives were solid, I think Rishi was playing the markets for his own wealth.
how high does everyone think they will move the base rate to control inflation?
The BofE think neutral is 1.5% to 2%
No, Gordon Browns motives were not solid.
He saved his own ass in 2004, so he was clear for three big job as tony had promised.
He deregulated the banks and b of E so set the scene for the 2008 crash.
He then again saved his own ass by bailing banks and starting printing money..
Everything since has followed from that.
And where have they obtained those reserves from?To be fair, the Thatcher government began de-regulating the banks, but Brown and co accelerated that. Now they are obliged to carry much larger reserves. The way the banking sector was sorted out in 2008 was basically by handing the rotten banks over to the banks who were able to continue trading. It was a huge mistake to ever sell the shares the government had in them. Cost the tax payer hugely. We should still own those shares.
And where have they obtained those reserves from?
Out of their customers hides
That hasn't stopped them paying near record bonuses....Yes, they have to retain more of their profits I presume.
Fair point. I think he has some level of integrity though, and don’t think he has got rich post the office. This guy Sunak is very dangerous, and has had a free ride from the press and opposition until the none dom thing with his wife.No, Gordon Browns motives were not solid.
He saved his own ass in 2004, so he was clear for three big job as tony had promised.
He deregulated the banks and b of E so set the scene for the 2008 crash.
He then again saved his own ass by bailing banks and starting printing money..
Everything since has followed from that.
That hasn't stopped them paying near record bonuses....
Bailed out banks are not privateI have no issue with huge bonuses being paid in the private sector. I do have an issue with the private sector, including individuals appearing able to pay fudge all tax.
I think bonuses should be a maximum of times the lowest wage in the business, I'm no socialist but when the boss gets a bonus many time the average wage to me that's very wrongI have no issue with huge bonuses being paid in the private sector. I do have an issue with the private sector, including individuals appearing able to pay fudge all tax.
It doesn’t appear like anyone in the media has economic training anymore. It’s just an echo chamber for public short term moaning. The media were generally against removing furlough in September last year.The problem with the whole thing is the mainstream media are not holding govt and central banks to account, I'm yet to see a single reporter talk about all the qe and covid stimulus. Its all due to supply problem and now russia. Majority of the population are clueless and will go along with this
Bailed out banks are not private
It doesn’t appear like anyone in the media has economic training anymore. It’s just an echo chamber for public short term moaning. The media were generally against removing furlough in September last year.
I would say there is a lot better news in the 140 characters or less space than there is on the TV.But what does the average media bod know? They are all copy writers trying to attract your attention in 140 characters or less. It's all bilge these days.
Thats why the banks should been let go bust and then bailed out, to wipe out all these contractsNo, but those employees and their companies signed a contract when they were taken on. My friend works for a high street bank and is paid a (far more modest) bonus every year. No reason they should not receive that if they have met their contract terms.