UK Economy

[CaerMyrddin]

It just has to stop doesn't it?

Yesterday went to a bank to set up a new account, they are paying 4% on a 12M deposit to new costumers. They had an outdoor with the superb offer of a 7.5% to small companies (but only under certain conditions)

[superfrank]

i doubt it will stop. you have to remember that all this market distortion by central banks has created a zombie-like situation where assets are overvalued but have been kept from crashing to fair value by zero interest rate policies and QE. that means there are limited lending opportunities for banks (who already have loans books that are not in great shape and only kept afloat by said policies).

the banks don't see much growth coming, and with no property bubble to pump they are happy to take the cheap money and bailouts and keep the bonus pot full while they slowly recapitalise.

[superfrank]

Budget 2013: Radical options for the UK economy
http://www.bbc.co.uk/news/business-20617088

- Negative interest rates
- Promising to stoke inflation
- Helicopter money
- Old-school public works schemes
- A debt jubilee

or how about a real radical approach... stop trying to solve debt problems with more debt and accept the country has to live within its means at a reduced standard of living that is sustainable?

[switesh]

Australia has been on a run of steady cuts by RBA, currently standing at 2.5% it is the lowest it's ever been with more cuts likely to come.

[andyfuller]

Just been said in the Bank Of England's forward guidance that interest rates won't rise until Unemployment falls below 7%. They are ready to buy more gilts if needed, will not reverse QE

[superfrank]

Ed Balls pledges to 'balance the books' by 2020
http://www.bbc.co.uk/news/uk-politics-25885606

is it April fools' day already?!

as someone says in the article comments, "Balls is not fit to run the finances of a fairground burger van".

[kelpie]

Ed Balls pledges to 'balance the books' by 2020
http://www.bbc.co.uk/news/uk-politics-25885606

is it April fools' day already?!

as someone says in the article comments, "Balls is not fit to run the finances of a fairground burger van".

Bollocks isn't it. 2020 just happens to be two elections out.

Ed, you muppet, there's the small matter of paying for a couple of million of your useless immigrants in ghettos across England. Unless you're a magician...

[Iron]

I wouldn't describe the immigrants as useless. Many are bloody hard working.

BTW, I question the official government figures for immigration - I think they are an underestimate. Where I live, you see immigrants absolutely everywhere! The block of flats I live in even has a sign in Polish as well as English asking people to close the front door securely!

Jeff

there's the small matter of paying for a couple of million of your useless immigrants in ghettos across England.

[kelpie]

I wouldn't describe the immigrants as useless. Many are bloody hard working.

BTW, I question the official government figures for immigration - I think they are an underestimate.

Jeff

With you on the stats. Right now, we're nearly running blind on immigration stats

But facts are facts, many MANY immigrants that Ed and his mates let in (sorry, encouraged to come) are utterly flipping useless. They're just benefit thieves, pure and simple. That some immigrants are economically advantageous is a different point. The scale of the problem caused by the thieves is in the millions of people and billions of pounds per year

Ed and the whole Labour fuck up of the naughties are economically wreckless. Rather than saying we need tax paying contract workers, they said we need Labour voters... and worked backwards from that.

[superfrank]

Help to Buy 'mistaken' and 'dysfunctional' says Posen
http://www.bbc.co.uk/news/business-26679739

The idea of pumping up credit for middle to upper-middle class people to spend more on housing, when people have already spent too much on housing, is dysfunctional

funny how they only ever say anything when they've left... 'too busy keeping their cushy jobs and perks when they've got any power.

govt underwriting private loans is about as anti-free market as you can get... all about politics (votes) imho - the easiest way to get short-term growth is to pump asset prices via loose credit - remind me how that ended last time!!!

[wearthefoxhat]

Will the FTSE100 reach this years' low (6959.48)?

FTSE100.png

[ShaunWhite]

Will the FTSE100 reach this years' low (6959.48)?

She's doing her best to ensure that happens.

Screenshot_20220923_115753.jpg

[Archangel]

Has anyone seen how much interest on Government debt has jumped today ? Really worrying timed ahead economically.

[Euler]

Has anyone seen how much interest on Government debt has jumped today ? Really worrying timed ahead economically.

Y, not great.

Though my dollar investments are doing well.

Personally I would prefer the government to pay down debt and reign in spending a bit. If the pound continues to weaken then we just import inflation.

[greenmark]

The muzzling of the OBR in terms of forecasting the effect of this budget is a disturbing development.

"The OBR was set up in 2010. According to George Osborne, the Conservative chancellor who established it, the OBR was introduced to “remove [from politicians] the temptation to fiddle the figures”. Before the OBR came along, the Treasury produced its own economic forecasts under supervision of the chancellor. But these were often too optimistic about UK growth and the impact of new policies. The result was lower tax receipts than expected, higher borrowing and, ultimately, damaged fiscal credibility. "