interest rates

[Steve Bullman]

so, great news for some undoubtedly, but i cant help thinking its just going to have a compounding effect on the recession when it finally hits full swing.

 

your views?

[Peter]

I'm going straight out tomorrow and buying a brand new truck and chipper. If we all did that the economy would be straightened out in no time!

[Mick Stockbridge]

I'm going straight out tomorrow and buying a brand new truck and chipper. If we all did that the economy would be straightened out in no time!

 

Agreed, lets talk ourselves out of a recession.

[Andy Collins]

I think its just a knee-jerk reaction to the economic climate, and will make things worse b4 they get better.

apparently the last time such a cut was made was in the early 80's, and i'm sure many can remember the state of the economy then!! Unemployent was rife, in fact I remember having to do 3 part-time jobs each day to earn a decent living, as there was no ful-time work available, mind you then we had the building boom and the "loadsamoney" era took off.

The bit that worries me is the government saying people have borrowed too much too easily, then turns around and borrows its way out of trouble, how long before they start printing money to lend themselves again?

[Paul Barton]

I can't believe that as the Bank of England drops their rates, some banks such as Abbey and Lloyds are upping their rates on some mortgages! I am due to remortgage soon so was hoping I might be in for a better deal but it's not looking that way.

 

Similarly I couldn't believe my ears a few weeks ago when I heard that OPEC were going to drop oil production to push demand and prices back up! They only just dropped from an all time high for goodness sake!!

 

Here endeth my mini-rant.

[Andy Collins]

Well, if the govt really wanted to help the common man (and woman) they would cut the taxation on fuel, thats the biggest cost of fuel, as we all know. They (the un-elected govt) talk the talk, but dont really want to walk the walk.

[Jamie]

I know so many people in secure jobs who all of this came as a surprise to. We did a lot of site clearances and overnight they just stopped. for the past year we have been commenting on how easy it was to borrow money and it wasn't sustainable. with me Visa were kind enough to increase my spending limit from 2k one year to 10k the next year. luckily i'm not completely stupid. i'm sure we all enjoyed the spending spree while it occured.

 

Jamie

[Tom D]

Its good news in the short term but as soon as things start to pick up they will have to put them up again, and unfortunately taxes too. The crazy thing is is the high fuel prices last year were largely to blame for the economic downturn ( not the banking crisis ) If they had cut fuel duty at the time and kept it around the £1 a litre mark we'd be in a much better position now.

[skyhuck]

The crazy thing is is the high fuel prices last year were largely to blame for the economic downturn ( not the banking crisis )

 

.

 

Please explain how this is the case???????

[Tom D]

As fuel prices rose so did the price of any thing which requires transporting, which is most things when you think about it. Hence the price rises in the shops of food etc. This coupled with the media going on and on about it gave people the feeling that they were worse off than they actually were hence they spent less leading to a slow down. The government did'nt help by putting up interest rates several times to try and control inflation which was being fueled by higher fuel prices. Well thats my take on it anyway....