UK Landlord Forum / Life

So guys, what do we think about the Fed making an unscheduled rate cut of 0.75% over in the US?

Is this likely to aid securing a rate cut in the UK? Or does it even need to, in order to stabilise things. It seems most of the trouble we have in Europe and Asia is to do with everyone worrying the US will go into recession and not buy our exports any more (aside from the specific exposure to sub-prime investments, which you'd hope has been identified in most cases by now).


V

Talk about a massive cut. That's all i've been hearing about on the news.

A lot of people are saying it's too little, too late, however. Hopefully this whole ordeal will encourage the BoE to drop their rates before it's too late.

Unfortunately, lenders have started to go against the BoE and are starting to raise their rates again. Nationwide announced that they are increasing rates for new borrowers by up to 0.15% today. That's - of course - a move in the opposite direction to the Bank of England. Apparently Alliance & Leicester will follow suit later this week, with other lenders following suit shortly after.

That's insane. What's happening to the inter-bank lending rate?

I can't imagine what they hope to gain by raising their rates, although in fairness I guess they probably do have most of the country over a barrel.


V

I think there are just trying to avoid a plunge.  Been looking into money exchanges today to see whats worth buying, to be honest there isnt much movment in rates so i think things arnt that bad ovet in the USA.
Ah who knows

Apparently all the exchanges around the world are rallying following the Fed change.

BoE will say there's too high a risk of inflation to drop the rates now.




V

Next decision is on 7th of Feb!

Hmm..they come around quick, don't they?

The Fed cut rates again! WTF?

Yup, 2nd time in 8 days. Interest rate is now 3%!! Holy shit!

Full article here

watched something last night about the poo the US is in.  its not uncommon to be paying around 17/18%.
The problem is USA has a huge poverty line with millions under it living in what was affordable housing, paying 4oo/5oo bucks a month to satisfiy their lender.  Now they are paying 1.1k/1.5k per month there is alot going under.  We all think about America being rich, but there is more under the poverty line than not i would say.



STOP THE WAR.