Boeing Share Discussion Threads

[westcoastrich] 07/10/2008 23:03

Tell me more

[fox tail] 07/10/2008 20:34

They'll cut tommorow

[westcoastrich] 07/10/2008 11:07

I think Brown, King and Darling should be dismembered by elephants

Course were getting deflation looming - just look at the falling commodity prices

[gsands] 07/10/2008 00:46

Inflation worries?

Geez, this lot really are a bunch of idiots.

If they don't cut rates, big and fast, they'll have an even bigger problem to worry about and it's called 'Deflation'.

With the amount of debt most consumers are carrying, deflation is absolutely the last thing we need.

Inflation errodes debt.
Deflation magnifies it.

[westcoastrich] 06/10/2008 18:21

Bank of England under pressure to cut interest rates
Business leaders, economists and politicians have all called on the Bank of England to cut interest rates by up to half a percentage point to revive Britain's ailing economy.

By Robert Winnett, Deputy Political Editor
Last Updated: 9:20PM BST 05 Oct 2008

They believe the cut - followed by further reductions in the coming months - are essential as Britain faces a full-blown recession.

The Bank has been cautious about cutting rates over the past few months as inflation is currently at a 15-year high. Alistair Darling, the Chancellor, yesterday ruled out changing the Bank's inflation target, which determines the level of interest rates.

However, Vince Cable, the Liberal Democrat shadow Chancellor said: "History teaches us that interest rates should be slashed during a banking crisis. This has happened in the United States, but not Britain.

"A big cut - conceivably as much as two percentage points - would have a big psychological impact on consumer and business confidence when it is most needed."

Graeme Leach, chief economist of the Institute of Directors, said: "We're seeing once-in-a-generation economic events, which now require a radical response. We do not believe the Bank would be taking risks with inflation if it reduced interest rates by at least 50 basis points."

The Bank of England's Monetary Policy Committee (MPC) meets this week for one of its trickiest monthly meetings. It has not cut rates since April and the base rate currently stands at 5 per cent - compared to two per cent in America.

Economists urged the MPC to overcome fears about inflation and to cut rates.

Peter Dixon, strategist at Commerzbank, said: "No central bank can stick its head in the sand and say inflation is the big problem."

George Buckley, chief UK economist at Deutsche Bank, said: "In a sense, inflation is in the rear-view mirror while recession is that we can see through the windscreen."

Michael Saunders, UK economist at Citigroup, said: "Our base case is for the MPC to cut rates to about 3.25% by late-2009, and rates may have to go even lower than that if the vicious circle between the economy and financial conditions continues to worsen."

However, there are fears that even if rates are cut, the reductions will not be passed on to mortgage holders by banks reluctant to lend.

If banks and building societies do not pass on any rate reduction it will do little to calm growing fears that Britain is heading into recession. Last week, the Office for National Statistics revised official economic figures to conclude that there was no economic growth over the summer.

[westcoastrich] 06/10/2008 18:21

Bank of England under pressure to cut interest rates
Business leaders, economists and politicians have all called on the Bank of England to cut interest rates by up to half a percentage point to revive Britain's ailing economy.

By Robert Winnett, Deputy Political Editor
Last Updated: 9:20PM BST 05 Oct 2008

They believe the cut - followed by further reductions in the coming months - are essential as Britain faces a full-blown recession.

The Bank has been cautious about cutting rates over the past few months as inflation is currently at a 15-year high. Alistair Darling, the Chancellor, yesterday ruled out changing the Bank's inflation target, which determines the level of interest rates.

However, Vince Cable, the Liberal Democrat shadow Chancellor said: "History teaches us that interest rates should be slashed during a banking crisis. This has happened in the United States, but not Britain.

"A big cut - conceivably as much as two percentage points - would have a big psychological impact on consumer and business confidence when it is most needed."

Graeme Leach, chief economist of the Institute of Directors, said: "We're seeing once-in-a-generation economic events, which now require a radical response. We do not believe the Bank would be taking risks with inflation if it reduced interest rates by at least 50 basis points."

The Bank of England's Monetary Policy Committee (MPC) meets this week for one of its trickiest monthly meetings. It has not cut rates since April and the base rate currently stands at 5 per cent - compared to two per cent in America.

Economists urged the MPC to overcome fears about inflation and to cut rates.

Peter Dixon, strategist at Commerzbank, said: "No central bank can stick its head in the sand and say inflation is the big problem."

George Buckley, chief UK economist at Deutsche Bank, said: "In a sense, inflation is in the rear-view mirror while recession is that we can see through the windscreen."

Michael Saunders, UK economist at Citigroup, said: "Our base case is for the MPC to cut rates to about 3.25% by late-2009, and rates may have to go even lower than that if the vicious circle between the economy and financial conditions continues to worsen."

However, there are fears that even if rates are cut, the reductions will not be passed on to mortgage holders by banks reluctant to lend.

If banks and building societies do not pass on any rate reduction it will do little to calm growing fears that Britain is heading into recession. Last week, the Office for National Statistics revised official economic figures to conclude that there was no economic growth over the summer.

[westcoastrich] 06/10/2008 18:14

he Citizens Advice Bureau has just released a report which says "The number of county court actions for mortgage and secured loans has also risen steeply over the last few years. Between 2004 and 2006, the number of mortgage possession claims has increased by nearly 70% and the number of possession orders actually made by 94%. The number of possession actions in 2006 is now similar to that seen at the beginning of the mortgage repossession crisis in 1990." Somebody should dig out that old Labour Party general election poster which blamed house repossessions on Hague and Portillo, changing the pictures to Brown and Darling. So much for an end to boom and bust...

[westcoastrich] 06/10/2008 18:10

Cut rates now, why wait till Thursday!!

[fox tail] 05/10/2008 09:03

If the bank of england ran a motor racing team they'd drive round the track at 30mph and write to their boss after every single race explaining why they came last.

They'd say we didn't have any accidents thus saving money for the tax payer.

They'd say we didn't cause any accidents thus making things better for everyone else.

They say we saved fuel, tyres and everything else and we're ready to race next week.

My point is here you have to pre empt events and take a risk waiting till all the boxes are ticked will lead to failure. Every time I hear king speak the rhetoric is beautiful and well planned but utterly f*ing usless for the period we're in.

[moob] 03/10/2008 22:38

Amit Kara, economist at UBS, says the sharp deterioration in the UK's growth prospects and the tumultuous events in financial markets in recent weeks have prompted him to change his forecast for interest rates.

Mr Kara expects a quarter point cut next week, instead of in the first quarter of 2009, and rates to fall to 3.25 per cent by the third quarter of next year.

[moob] 30/9/2008 21:40

8 & 9 October

[moob] 30/9/2008 21:36

when is the nex boe meet

[fox tail] 30/9/2008 19:38

interersting I wil have a look at that thread later

[gsands] 30/9/2008 13:29

'The process by which banks create money is so simple that the mind is repelled' John Kenneth Galbraith - Economist

[fox tail] 29/9/2008 19:08

They've never been tested before and they're playing a game of patience and bluff, inflation seems to be their only worry but I'd have thought the job losses and the retail figures and everything else would be a tad more inportant that whether we pay 109p or 115p or 102p for a liter of unleaded.

You've got the UK banking sector in a complete meltdown, so they leave rates stuck firmly caught in the headlights.

[gsands] 29/9/2008 18:25

We need a rate cut or some kind fiscal stimulation immediately.

The MPC had better deliver soon, otherwise you can wave goodbye to UK PLC.

[whiterussians] 29/9/2008 16:54

cut rates Argggghhhhhhhhhhhhhhhhhhhhhhhhh

[gsands] 26/9/2008 13:56

I think this article and the view of the UBS analyst highlights what a bunch of dithering idiots the BoE are:

[hsbcpremier] 23/9/2008 07:22

cut rates now! whens the next BOE meet?

[fox tail] 22/9/2008 20:13

the boe have a bit of a "rabbit caught in headlights" look to them, the govt admit worst crisis since the war etc but do nothing.

I think the real reason they do nothing now is setting rates is the only ammuntion thay have in real terms to help the economy and they are literally keeping their powder dry.