Quote:
Originally Posted by Big Brian
Is the bad weather recently attributed to Brexit? I ask because they blame everything else when they could just carry on trading as normal. But no, they have to carry on making problems for themselves. I can understand it had we left on the Friday after the vote.
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You seem to be saying that firms are causing themselves problems which is ridiculous. Companies are responding to try and ensure themselves and their shareholders make the most money possible, and mitigate risk.
This is what you voted for. Almost everyone said there would be some rough times immediately after the vote. Until we know where we are going forward companies will continue to take steps to protect themselves. Most companies are, necessarily, defensive during uncertain periods. If they weren't behaving in that manner their shareholders would certainly have a case to sue them.
The actions of the BoE should help a ton incidentally. What they've done is decisive and should prevent the drama turning into a crisis.
While I have derided him in the past Mark Carney has been a rare voice of reason in all of this and the actions he and the MPC have taken have been proportionate, proactive and eminently reasonable so far.
I'm just listening to him saying that banks have absolutely no excuse not to pass on the rate cut they just carried out, as the other policy measures have ensured they don't.
---------- Post added at 12:57 ---------- Previous post was at 12:56 ----------
Quote:
Originally Posted by Big Brian
I don't understand all the financial stuff but printing money only puts off for a while as it has to be paid back. Wish they'd put the interest on my credit card at 0.25%.
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Indeed you don't, given that in this case it doesn't
Printing money increases inflation generally, it doesn't involve any payback. Neither does it mean that the government bonds that they are going to buy with some of this will have to be paid back. The BoE can cancel the bonds. They create the currency, they can also destroy it. It's rather obscure however money these days is, almost entirely, nothing but numbers on a computer. If inflation were not an issue the BoE could 'print' it ad infinitum.
The BoE are doing what they can to try and keep the economy motoring.
When you can create your own currency, accepted worldwide, then I'm sure your credit card can go near 0.25%.