Bank of England.....my arse !!

[gaudinho's stolen car]

i see a ford focus , ford fiesta and a nissan almera

Move somewhere nice then.

i live in the poshest bit of swinton ;)

Ah, The Valley I presume. Very swish.

 

[tueartsboots]

Cheers SWP, next question ! Our mate Dave says we should pay our debts back, ie clear credit cards etc but surely this will deplete bank reserves ie 1) No savings means nothing to "play with" er I mean loan out and 2) Credit card companies not getting interest as most cc companies are bank owned, again this depletes stock. With saving rates at an all time low there doesn't seem much point in saving/off setting costs, may as well just pay- o% IF seems to be on the decline too

 

[Aphex]

If the "quantative easing" creates growth, then it makes sense theoretically. But if the money just goes into the ether, or to a handful of people/organisations, then it's just throwing money down the drain. Billy Bragg said it amounted to £4k each, it would be nice if all of that money went into our local economy.

Agreed. That's the question, how will the money be paid into the system ?
When the banks had there last glut of BoE cash, they recapitalized and lent the population LESS money. This money will help the rich get richer and won't help those that need it.

Easy

Lend more, create jobs, and recoup more for the economy in interest and taxes..

 

[SWP's back]

Cheers SWP, next question ! Our mate Dave says we should pay our debts back, ie clear credit cards etc but surely this will deplete bank reserves ie

1) No savings means nothing to "play with" er I mean loan out and

2) Credit card companies not getting interest as most cc companies are bank owned, again this depletes stock.

With saving rates at an all time low there doesn't seem much point in saving/off setting costs, may as well just pay- o% IF seems to be on the decline too

I don't agree with Dave on this but you must remember that I am not an economist (in a professional capacity at any rate).

But your point 1 and 2 are mutually exclusive (they can't both deplete bank's stock of money as paying off a CC would be putting money back into their reserves).

Anyway, I think you miss a fairly big point, the people Dave is talking to are not those with 10's of thousands etc already in the bank, he is meaning those with no savings. No one in their right minds would leave 1000's in the bank earning less than 1% whilst they have money on CC PAYING 18-28%.

 

[tueartsboots]

Cheers SWP, next question ! Our mate Dave says we should pay our debts back, ie clear credit cards etc but surely this will deplete bank reserves ie

1) No savings means nothing to "play with" er I mean loan out and

2) Credit card companies not getting interest as most cc companies are bank owned, again this depletes stock.

With saving rates at an all time low there doesn't seem much point in saving/off setting costs, may as well just pay- o% IF seems to be on the decline too

I don't agree with Dave on this but you must remember that I am not an economist (in a professional capacity at any rate).

But your point 1 and 2 are mutually exclusive (they can't both deplete bank's stock of money as paying off a CC would be putting money back into their reserves).

Anyway, I think you miss a fairly big point, the people Dave is talking to are not those with 10's of thousands etc already in the bank, he is meaning those with no savings. No one in their right minds would leave 1000's in the bank earning less than 1% whilst they have money on CC PAYING 18-28%.

Surely 2) is simply paying off the reserve whereas running the debt, ie paying interest is topping up reserves? Ergo paying off CC will deplete reserves and simply return the CC to base balance ? The whole idea of lending money is to make money by making the offsetting of a loan to savings interest seem (at the very least) cost effective?<br /><br />-- Fri Oct 07, 2011 11:53 am --<br /><br />

Cheers SWP, next question ! Our mate Dave says we should pay our debts back, ie clear credit cards etc but surely this will deplete bank reserves ie

1) No savings means nothing to "play with" er I mean loan out and

2) Credit card companies not getting interest as most cc companies are bank owned, again this depletes stock.

With saving rates at an all time low there doesn't seem much point in saving/off setting costs, may as well just pay- o% IF seems to be on the decline too

I don't agree with Dave on this but you must remember that I am not an economist (in a professional capacity at any rate).

But your point 1 and 2 are mutually exclusive (they can't both deplete bank's stock of money as paying off a CC would be putting money back into their reserves).

Anyway, I think you miss a fairly big point, the people Dave is talking to are not those with 10's of thousands etc already in the bank, he is meaning those with no savings. No one in their right minds would leave 1000's in the bank earning less than 1% whilst they have money on CC PAYING 18-28%.

Surely 2) is simply paying off the reserve whereas running the debt, ie paying interest is topping up reserves? Ergo paying off CC will deplete reserves and simply return the CC to base balance ? The whole idea of lending money is to make money by making the offsetting of a loan to savings interest seem (at the very least) cost effective?

 

[r.soleofsalford]

Move somewhere nice then.

i live in the poshest bit of swinton ;)

Ah, The Valley I presume. Very swish.

always thought the poets myself

 

[SWP's back]

Cheers SWP, next question ! Our mate Dave says we should pay our debts back, ie clear credit cards etc but surely this will deplete bank reserves ie

1) No savings means nothing to "play with" er I mean loan out and

2) Credit card companies not getting interest as most cc companies are bank owned, again this depletes stock.

With saving rates at an all time low there doesn't seem much point in saving/off setting costs, may as well just pay- o% IF seems to be on the decline too

I don't agree with Dave on this but you must remember that I am not an economist (in a professional capacity at any rate).

But your point 1 and 2 are mutually exclusive (they can't both deplete bank's stock of money as paying off a CC would be putting money back into their reserves).

Anyway, I think you miss a fairly big point, the people Dave is talking to are not those with 10's of thousands etc already in the bank, he is meaning those with no savings. No one in their right minds would leave 1000's in the bank earning less than 1% whilst they have money on CC PAYING 18-28%.

Surely 2) is simply paying off the reserve whereas running the debt, ie paying interest is topping up reserves? Ergo paying off CC will deplete reserves and simply return the CC to base balance ? The whole idea of lending money is to make money by making the offsetting of a loan to savings interest seem (at the very least) cost effective?

Yes but you didn't say that in your post.

Anyway, as I said, Dave wasn't talking to people with huge savings.

No one would be crazy enough to have savings and not use that to pay of CC debt (unless they wish to be charged 20odd percent difference between their savings and debt).

 

[r.soleofsalford]

i live in the poshest bit of swinton ;)

Ah, The Valley I presume. Very swish.

always thought the poets myself

ok, so this Q.E. is a speculative move on behalf of the government that may have a positive effect or not.

my question is, who, if anybody, will definitely benefit from this course of action. i myself can only see even more bulging wallets all over the square mile.

or i`m i just an old cynic ?

 

[SWP's back]

Ah, The Valley I presume. Very swish.

always thought the poets myself

ok, so this Q.E. is a speculative move on behalf of the government that may have a positive effect or not.

my question is, who, if anybody, will definitely benefit from this course of action. i myself can only see even more bulging wallets all over the square mile.

or i`m i just an old cynic ?

Explain how you see that the BoE buying UK Gilts and banking bonds will result in that?

 

[r.soleofsalford]

always thought the poets myself

ok, so this Q.E. is a speculative move on behalf of the government that may have a positive effect or not.

my question is, who, if anybody, will definitely benefit from this course of action. i myself can only see even more bulging wallets all over the square mile.

or i`m i just an old cynic ?

Explain how you see that the BoE buying UK Gilts and banking bonds will result in that?

75 billion in Q.E. could raise to 500 billion according to reports. who benefits from this most i would you say the banks

boe are hoping for a trickle down effect. is that the same theory that if you throw enough shit at the wall some will stick.