Tories admit Labour did NOT cause the Great Recession

[Lady Murasaki]

Yes, it is historical context, but only based on very recent history, ie what has happened in the last few months.

Interest rates are set by industrial, economic, inflation and jobs data. The balance is to keep rates as low as possible without causing inflation to rise unduly.

It also allows consistent growth which in turn allows us to lessen the countries debt by increasing tax take.

Economics 101 - low side interest rates are good if inflation is held at around 2 - 3%, which it was in the noughties.

House prices are, IMHO, a red herring brought about by a combination of hype and a sense of entitlement mixed with desperation.

They should also be set according to historical data, the kind of data that shows what causes a depression/ recession. Being so short sighted as to only look at the previous few months data has clearly cost us in the long term.

[Cannydc]

Then we must agree to disagree.

And as an example of rates being driven by contemporary circumstances, see below


Wed, 08 Oct 2008 4.5000
Thu, 08 Jan 2009 1.5000

Fri, 03 Jun 1988 7.8750
Thu, 25 Aug 1988 11.8750

Mon, 08 May 1978 8.7500
Thu, 15 Nov 1979 17.0000

All reacting to crises arising in a matter of days or weeks. Nothing to do with history. You should be able to work out the events for yourself...

[Lady Murasaki]

Then we must agree to disagree.

And as an example of rates being driven by contemporary circumstances, see below


Wed, 08 Oct 2008 4.5000
Thu, 08 Jan 2009 1.5000

Fri, 03 Jun 1988 7.8750
Thu, 25 Aug 1988 11.8750

Mon, 08 May 1978 8.7500
Thu, 15 Nov 1979 17.0000

All reacting to crises arising in a matter of days or weeks. Nothing to do with history. You should be able to work out the events for yourself...

Yes reactive, but the important ones for this thread are the rates from 2001 to 2008. Why did they go below 5% for so many years?

[Cannydc]

Simply put, because they could.

As mentioned before, moderately low interest rates boost growth, boost tax take accordingly, and allowed in this case the rebuilding of the NHS to drastically lower waiting times by hiring doctors and nurses as well as building 50 new hospitals.

All reliant on keeping inflation under control, of course.

[Fletch]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

[Lady Murasaki]

Simply put, because they could.

As mentioned before, moderately low interest rates boost growth, boost tax take accordingly, and allowed in this case the rebuilding of the NHS to drastically lower waiting times by hiring doctors and nurses as well as building 50 new hospitals.

All reliant on keeping inflation under control, of course.

Bib, this is the short sighted issue. They could but they shouldn't have. The housing bubble was a huge fricking mistake.

[Lady Murasaki]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

[Fletch]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

Who offered the loans? Who upped the multiple of income and who accepted people for 100% mortgages, sometimes even higher with a cash back?

The bank's bank, the Central bank, Bank of England set interest rates. Also private balance sheet with private interests up-holding the debt based lending system of money.

[Big Fat Frosty]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

switch bankers for heroin dealers
is there business method also good
get people hooked low
then sell em high

[Lady Murasaki]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

Who offered the loans? Who upped the multiple of income and who accepted people for 100% mortgages, sometimes even higher with a cash back?

The bank's bank, the Central bank, Bank of England set interest rates. Also private balance sheet with private interests up-holding the debt based lending system of money.

Who forced people to take up those loans?
I repeat, banking is a business, they will do what they need to to get back on their investments.
Low rates meant they don't make much profit so they had to increase their yield by selling ridiculous loans.
Why did the BoE set the rates low? Because of the federal reserve bank, and their chairman admitted the error.

Don't start with the it's all about starting wars and all that sinister shit. I'm not interested in CTs.

[Lady Murasaki]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

switch bankers for heroin dealers
is there business method also good
get people hooked low
then sell em high

It's business, that's how it works.
Hence the need for regulation.
The government let us down by not controlling the interest rates.

[Big Fat Frosty]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

switch bankers for heroin dealers
is there business method also good
get people hooked low
then sell em high

It's business, that's how it works.
Hence the need for regulation.
The government let us down by not controlling the interest rates.

is that government speak for they let there dealers
go hog wild
and fuck the consequence

[Lady Murasaki]

Pretty much yeah, Frosty.
Set the lights to green and everyone will go for it, and why not?
They should have controlled those lights in the first place.

[Fletch]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

Who offered the loans? Who upped the multiple of income and who accepted people for 100% mortgages, sometimes even higher with a cash back?

The bank's bank, the Central bank, Bank of England set interest rates. Also private balance sheet with private interests up-holding the debt based lending system of money.

Who forced people to take up those loans?
I repeat, banking is a business, they will do what they need to to get back on their investments.
Low rates meant they don't make much profit so they had to increase their yield by selling ridiculous loans.
Why did the BoE set the rates low? Because of the federal reserve bank, and their chairman admitted the error.

Don't start with the it's all about starting wars and all that sinister shit. I'm not interested in CTs.

Rates are set for a number of reasons, the lower the better for growth and business. The collapse wasn't due to interest rates suddenly rising like on black wednesday,. It was the interconnection (and conniving) of world banking. Banks in pretty much all countries suffered, it wasn't a uk based issue. It was a failure of the system of money (banking) and will happen again. (ever rising unpayable debt)

[Lady Murasaki]

Banking is a private business. It's profit comes from lending (creating) money. The more it lends, the more it makes. Lower rates entice people in, higher rates then allows tangible assets to be seized upon non payment of loan. They get real assets on the cheap using money they created out of thin air for no cost. Look at RBS and the hounding of businesses from their debt management department, Noel Edmonds fight with banks and others. Banks deliberately forcing bankruptcy for their own gains. Banks are not your friend, they are the whole problem in society. (FRB)

Jesus, how many more times.
The banks didn't set the rates.
Lending is their business but they have to make a profit for their shareholders.
If you're going to blame banks then you also have to blame those who took out mortgages beyond their means.

Who offered the loans? Who upped the multiple of income and who accepted people for 100% mortgages, sometimes even higher with a cash back?

The bank's bank, the Central bank, Bank of England set interest rates. Also private balance sheet with private interests up-holding the debt based lending system of money.

Who forced people to take up those loans?
I repeat, banking is a business, they will do what they need to to get back on their investments.
Low rates meant they don't make much profit so they had to increase their yield by selling ridiculous loans.
Why did the BoE set the rates low? Because of the federal reserve bank, and their chairman admitted the error.

Don't start with the it's all about starting wars and all that sinister shit. I'm not interested in CTs.

Rates are set for a number of reasons, the lower the better for growth and business. The collapse wasn't due to interest rates suddenly rising like on black wednesday,. It was the interconnection (and conniving) of world banking. Banks in pretty much all countries suffered, it wasn't a uk based issue. It was a failure of the system of money (banking) and will happen again. (ever rising unpayable debt)

So no lessons will be learnt from this then?
Just like no lessons were learnt from the depression of 1930s.
You just love the conniving theories don't you? Fuck knows why you cling onto that crap, you've gone a bit weird from dwelling in the wilderness I reckon.
Don't just read stuff, think, listen, apply to reality,