Page 6 - Rates cuts are coming! It's June 25, 2003

05-10.-2007, 04:02 AM

#76

Hypnospin

Registered User

Join Date: Apr 2005

Location: ex of santa cruz, california, usa

Posts: 794

Re: Rates cuts are coming! It's June 25, 2003

tru, the us dollar has become so devalued rappers are wearing diamond encrusted pesos round their necks...

Quote:

Originally Posted by Bro Deal

The worst part of thiis situation is that we can no longer make fun of our neighbors to the north and their canadian pesos. The USD is now pretty much equivalent to the CAD. By this time next year the canucks will be making american peso jokes.

__________________
"The dogmas of the quiet past are inadequate to the stormy present...As our case is new, so must we think anew and act anew"
Abraham Lincoln, in his address to congress dec. 1st, 1861

30-10.-2007, 11:32 PM	#77
limerickman Community Team Join Date: Jan 2004 Location: at the bar Posts: 12,131	Re: Rates cuts are coming! It's June 25, 2003 Tracking in the ECB rates movements since Nov 2001 : November 8 2001 3.25% December 5 2002 2.75% March 6 2003 2.50% June 5 2003 2.0% December 1 2005 2.25% March 2 2006 2.5% June 8 2006 2.75% August 3 2006 3.0% October 5 2006 3.25% December 7 2006 3.5% March 8 2007 3.75% June 6 2007 4.0% Fed is expected to cut the US rate this week : Beeb showed a very interesting programme last night on the sub-prime debacle in the USA. The programme covered what is going on in Cleveland, Ohio. The number of repossessions there has increased from 12 per week to over 90 per week. The programme followed the sheriffs dept as it carried out eviction orders for people who had foreclosed on their mortgages (sheriffs dept were very considerate of the people concerned, let me add). The programme featured several local politicians who said that not only were loans sold to people who could not afford them, that coupled with the fact that Cleveland has lost a lot of employment, the situation in that region was "now critical". Terrible to see people being evicted. __________________ .."But finally the last thing I’ll say to the people who don’t believe in cycling, the cynics and the sceptics. I'm sorry for you. I’m sorry that you can’t dream big. [I]I'm sorry you don't believe in miracles. You should believe in these athletes, and you should believe in these people. I'll be a fan of the Tour de France for as long as I live. And there are no secrets" - this is a hard sporting event and hard work wins it - Armstrong 2005 TDF morelike hypocrisy. Last edited by limerickman : 30-10.-2007 at 11:38 PM.

02-11.-2007, 11:12 AM

#78

Bro Deal

Registered User

Join Date: Jun 2006

Location: Resting by the Tumtum tree

Posts: 5,431

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by limerickman

Terrible to see people being evicted.

Yes, but if you buy with no down payment and 100% financing then what have you lost? You were not doing anything different than renting anyway--no matter how much you deluded yourself that you were a home owner.

__________________
"I'm completely fu**ed up. Even the speed of the bus was almost too fast for me." -- Gert Steegmans

02-11.-2007, 11:19 AM

#79

limerickman

Community Team

Join Date: Jan 2004

Location: at the bar

Posts: 12,131

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by Bro Deal

Objectively, you're correct.

However, having watched the programme and seeing people being physically removed from their homes, it is hard not to feel sympathetic.

The programme was very good.
It described how home ownership in the USA in the 1950's was held out as being the achievement of the American dream.
If you owned your own home - then you were made up.
In itself, there is nothing wrong with this objective.
However.
The programme described how this objective has permeated the American psyche and using that objective, people who could never afford a mortgage, were persuaded by finance companies to take out loans to buy their own home or to "realise the American dream".

__________________
.."But finally the last thing I’ll say to the people who don’t believe in cycling, the cynics and the sceptics. I'm sorry for you. I’m sorry that you can’t dream big. [I]I'm sorry you don't believe in miracles. You should believe in these athletes, and you should believe in these people. I'll be a fan of the Tour de France for as long as I live. And there are no secrets" - this is a hard sporting event and hard work wins it - Armstrong 2005 TDF
morelike hypocrisy.

02-11.-2007, 03:28 PM

#80

Bro Deal

Registered User

Join Date: Jun 2006

Location: Resting by the Tumtum tree

Posts: 5,431

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by limerickman

However, having watched the programme and seeing people being physically removed from their homes, it is hard not to feel sympathetic.

The programme was very good.
It described how home ownership in the USA in the 1950's was held out as being the achievement of the American dream.
If you owned your own home - then you were made up.
In itself, there is nothing wrong with this objective.
However.
The programme described how this objective has permeated the American psyche and using that objective, people who could never afford a mortgage, were persuaded by finance companies to take out loans to buy their own home or to "realise the American dream".

I hear you. For some reason Colorado has been heavily hit with foreclosures. For those losing their homes, it is certainly traumatic for them and their families. Perversely, the others involved in the deals made fat profits at the expense of the doomed "home owners," and the take is a whopping 6% in the states. I seem to recall reading that in the U.K. the transaction cost is 1 or 2%, I forget which.

The American dream of home ownership has been corrupted by insane consumerism. I don't know if the term is in common use in the U.K. but in America we have the term "house poor," meaning someone who buys a house so expensive relative to his income that there is little money left over for anything else. Thus you have people living "large" in their new McMansions , but they cannot afford to properly heat the whole house in winter or cool it in summer. A friend of mine had lawn furniture (and little else) inside their house for a couple of years; they wore sweaters or vests inside during winter.

__________________
"I'm completely fu**ed up. Even the speed of the bus was almost too fast for me." -- Gert Steegmans

02-11.-2007, 09:17 PM

#81

limerickman

Community Team

Join Date: Jan 2004

Location: at the bar

Posts: 12,131

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by Bro Deal

We have the same situation here.
Property prices in this great little nation of ours has increased expotentially by over 600% in some cases, in little less than a decade.
For example, I purchased a house in 1992, for investment purposes, in a nice residential area in Dublin.
Three bedroom-semi : 1,200 sq foot.
Value £50,000 (or €63k).
I let the house out for rent.

The same house, would now sell today for between €450-€500k.
The mortgage on that house is paid off - and I would nett between somewhere between € 350-€400k after capital gains tax, if I decided to sell it.
I could have sold it two years ago, at € 550k.
I haven't sold the house, nor do I intend to sell the house.
My point is that it is crazy that a house like that could appreciate by over 700% in 14 years.

We have young couples in this country mortgaging themselves for 30/40 yrs, just to get on the property ladder.
That particualr house that I own would be considered, traditionally, as a starter home.
No young couple could, or should, be expected to have to fork out to buy a starter home at those price levels.
Throw in the fact that young couples expect their homes to have all the latest TV sets, expensive furnishings etc, I don't know how people survive.
In fact, I know that many are not surviving - they're barely keeping their heads above water.

Consumerism is a disease, I think and everything has to be possessed now.
The idea of "saving up" to buy the pushbike/car/deposit for the house is no longer the norm.

I was brought up in a time when economically this country was on it's knees.
We didn't have playstations as kids - we had a football and, if you were really lucky, you had a pushbike to play with.

Kids today have to have the latest gizmos - they have to have the latest fashion, they have to have MP3 players, mobile phones etc.
On wonders how we all survived childhood.

Rant over.

02-11.-2007, 10:40 PM	#82
jhuskey Registered User Join Date: Oct 2003 Location: Great Smoky Mountains, TN USA Posts: 5,909	Re: Rates cuts are coming! It's June 25, 2003 The world went to hell with the debut of the Barbie doll.If needed,I can explain my theory. __________________ Over 6 million squirrels attempt suicide each day.

02-11.-2007, 10:44 PM

#83

Felt_Rider

Registered User

Join Date: Oct 2004

Posts: 1,155

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by limerickman

We have young couples in this country mortgaging themselves for 30/40 yrs, just to get on the property ladder.
That particualr house that I own would be considered, traditionally, as a starter home.
No young couple could, or should, be expected to have to fork out to buy a starter home at those price levels.
Throw in the fact that young couples expect their homes to have all the latest TV sets, expensive furnishings etc, I don't know how people survive.
In fact, I know that many are not surviving - they're barely keeping their heads above water.

Consumerism is a disease, I think and everything has to be possessed now.
The idea of "saving up" to buy the pushbike/car/deposit for the house is no longer the norm.

I was brought up in a time when economically this country was on it's knees.
We didn't have playstations as kids - we had a football and, if you were really lucky, you had a pushbike to play with.

Kids today have to have the latest gizmos - they have to have the latest fashion, they have to have MP3 players, mobile phones etc.
On wonders how we all survived childhood.

Rant over.

I have been fortunate to have paid off my mortgage early (with a lot of hard effort) and it is considered a starter home in my local market, but I am grateful not to have had the mindset of those around me as you have described. I have visited a number of those homes in the nicer neighborhoods near me and when we drive up the landscaping looks to be professionally kept, two brand new SUV's (probably leased) and impressive sized homes, but once we enter the door there is minimal furntiture and even at that it looks like something out of a college dorm room. It reminds me of the Hollywood cowboy sets of a western town. On film it looks like an authentic western town, but if you looked behind the walls you would see it is all fake and only the front looks to be real. Many of these couples try to create this false front that when you drive up it looks really impressive, but we you find out about them you realize they really have nothing. What they own is kitchen utensils, clothes and a scant amount of college dorm room furniture. Some of them have nice furniture, but usually that is on some kind of payment plan as well. When I was working hard to become debt free I was predicting a day when all these people would have a great fall and now the day is here. Not that I hoped that would happen for them, but it was easy to predict if the economy turned down a little.

But here is the bad thing. They have not only hurt themselves, but they have hurt the rest of us as well. I am debt free and though I am grateful I am at risk as well now because it is impacting our economy in a general manner. Luckily with being debt free my stress levels are still low, but I am watching with concern.

02-11.-2007, 11:15 PM

#84

limerickman

Community Team

Join Date: Jan 2004

Location: at the bar

Posts: 12,131

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by Felt_Rider

I hear you, Felt.

If it's any consolation, over here, we now have the same situation that you have. "don't worry - so long as people continue to spend on (please select any/all of the following..clothes/cars/holidays/gadgets/houses), the economy will be fine"
It would be fine if the people spending were doing so - from their disposable income.
The fact is that they're not - they're spending on their credit cards or they're borrowing money to spend or they're spending money earned from overtime.
In other words, if the credit card gets maxxed, if the loan isn't repaid or if the overtime dries up or if they lose their jobs, then what will people do?

Debt and people getting in to debt, is growing here all the time.
They want to have all the material items now, today - they're not prepared to save.

Personally I don't know why people feel the need to spend as they do.
Do they feel inadequate if they don't have the latest fashion/gizmo????

02-11.-2007, 11:24 PM	#85
jhuskey Registered User Join Date: Oct 2003 Location: Great Smoky Mountains, TN USA Posts: 5,909	Re: Rates cuts are coming! It's June 25, 2003 Personally I don't know why people feel the need to spend as they do. Do they feel inadequate if they don't have the latest fashion/gizmo????[/QUOTE] Barbie doll! __________________ Over 6 million squirrels attempt suicide each day.

02-11.-2007, 11:31 PM

#86

limerickman

Community Team

Join Date: Jan 2004

Location: at the bar

Posts: 12,131

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by jhuskey

Personally I don't know why people feel the need to spend as they do.
Do they feel inadequate if they don't have the latest fashion/gizmo????

Barbie doll![/QUOTE]

needs must!

09-11.-2007, 12:05 AM

#87

limerickman

Community Team

Join Date: Jan 2004

Location: at the bar

Posts: 12,131

Re: Rates cuts are coming! It's June 25, 2003

November 07 Bank of England announces : no change in interest rates.

Again.

Quote:

Originally Posted by limerickman

.........and the Bank of England too, has keep interest rates unchanged after their monthly meeting today.

Nice!

http://www.ireland.com/newspaper/breaking/2007/1004/breaking58.htm

Last Updated: 04/10/2007 12:54
No change for UK interest rates

The Bank of England kept official interest rates steady for a third month running today, but many people expect it will cut them later this year as a credit crunch in global markets starts hitting the wider economy.

Analysts had predicted the BoE's Monetary Policy Committee would keep borrowing costs at 5.75 per cent. Policy makers have said they need time to see what effect recent market turmoil has on economic growth and inflation.
The BoE offered no statement to accompany its widely expected decision but sterling rose and interest rate futures fell as there had been some nervousness the BoE could make a surprise cut.

A few months ago many economists had predicted a further rate rise this year following five since August 2006. But this was before the global cash crunch which prompted a run on British mortgage bank Northern Rock last month.

There are worries that this will soon spill over into tighter lending conditions on companies and consumers, slowing the economy as a result.
There are already signs that Britain's housing market is cooling. Mortgage lender Halifax said house prices fell 0.6 per cent last month, the first decline since December.

The BoE has said it will watch credit conditions closely and many economists believe rates have now peaked and could come down as soon as November. But the economy is still firing on all cylinders and price pressures have not abated

09-11.-2007, 12:21 AM

#88

limerickman

Community Team

Join Date: Jan 2004

Location: at the bar

Posts: 12,131

Re: Rates cuts are coming! It's June 25, 2003

Quote:

Originally Posted by Hein-Verbruggen

Lim: Never look into the rear view mirror for future course changes and we're all in this global financial mess together. Money center banks know no borders anymore, nor do Swiss or Cayman secrecy rules. The future of residential real estate is a pain cave. Deflation is the next shoe to drop.

Inflation is something to worry about in a full employment wonderland. Going forward, England & Europe will have unemployment issues and deflation.

Hilarious re-reading the above tripe.

Couldn't have got it more wrong.

Quote:

Originally Posted by Hein-Verbruggen

All central bankers will meet secretly and hold hands. Rate cutting will be measured and uniform, but the direction will be straight downward. Everyone will climb on board.

Wrong.
Wrong when this tripe was posted in August and still wrong today three months later.

The only one cutting rates is the Fed - cause it's got no other choice.
ECB and Bank of England did maintain rates at the same level since August and they will maintain rates to ward of inflation.

"Rate cutting will be measured and uniform" : priceless.

Quote:

Originally Posted by Hein-Verbruggen

Just as I predicted the ubiquitous nature of doping in pro cycling, I have now correctly telegraphed the global recession of 2008-2009.

The good news for SUV owners is that the blood-for-oil program will result in lower prices at the pump and heating oil for those trapped in a Winter chill.

.........................comical.

Crude prices hitting nearly $100.00 a barrel today.

The one thing that you did manage to get right in all of this...................it will be a cold winter........but only because people won't be able to afford to buy oil and not due to the waffle you posted.

09-11.-2007, 02:24 AM	#89
limerickman Community Team Join Date: Jan 2004 Location: at the bar Posts: 12,131	Re: Rates cuts are coming! It's June 25, 2003 8th November 2007 : European Central Bank has........held interest rates steady once again. http://www.ft.com/cms/s/0/aec05cd8-8de5-11dc-8591-0000779fd2ac.html?nclick_check=1 The European Central Bank has left its main interest rate unchanged at 4 per cent as global financial turmoil restricts its room for manoeuvre. The decision by its governing council meeting in Frankfurt was expected but came despite eurozone inflation leaping last month to 2.6 per cent on the back of higher oil and food prices. The euro’s rise this week to a new record of more than $1.47 against the dollar is likely to have been seen by at least some ECB governing council members as having done the ECB’s work in braking the 13-country eurozone economy. The ECB will also have been wary about disrupting further already volatile financial markets – a fear which may result in Jean-Claude Trichet, ECB president, being more circumspect than normal when he holds a press conference this afternoon. Economic confidence indicators have pointed to a significant slowdown after a strong third quarter of growth, while the global credit squeeze has already pushed up financing costs for business. The ECB aims to keep eurozone inflation “below but close” to 2 per cent. Mr Trichet’s comments will be monitored closely by financial markets, which are looking for a guide on how serious the ECB remains about pressing ahead with further interest rate rises. A crucial factor is likely to be the ECB’s view on likely inflation developments in 2008. Since December 2005, the ECB has raised its main interest rate eight times by a quarter percentage point – most recently in June this year. __________________ .."But finally the last thing I’ll say to the people who don’t believe in cycling, the cynics and the sceptics. I'm sorry for you. I’m sorry that you can’t dream big. [I]I'm sorry you don't believe in miracles. You should believe in these athletes, and you should believe in these people. I'll be a fan of the Tour de France for as long as I live. And there are no secrets" - this is a hard sporting event and hard work wins it - Armstrong 2005 TDF morelike hypocrisy.

09-11.-2007, 02:29 AM	#90
limerickman Community Team Join Date: Jan 2004 Location: at the bar Posts: 12,131	Re: Rates cuts are coming! It's June 25, 2003 more commentary from the ECB spokeman today, 8th November 2007 : European Central Bank President Jean-Claude Trichet said today that 'brutal' exchange rate moves were never good for the world economy, as the dollar teetered close to all-time lows against the euro again. 'I have said already, brutal moves are never welcome,' Trichet told a news conference after the ECB left interest rates on hold at 4% for the fifth month running. The euro has hit record highs against the dollar and major trading currencies as traders exploit the narrowing interest rate gap with the US and concerns about US growth in the wake of the subprime mortgage crisis. In January 2004, Trichet used the word 'brutal' to describe a sharp rise in the euro, then at record highs of $1.2898. The ECB chief said today that he had seen 'sharp and abrupt' moves in exchange rates, adding that the Group of Seven finance ministers' position on the undesirability of disorderly movements was true more than ever. He also emphasised the US government's stated position that it is in favour of a strong dollar. Trichet also said today that there were continued inflationary risks in the 13-nation euro zone but hinted there would be no interest rate hike next month. 'The outlook for price stability over the medium term is subject to upside risks,' he said. But he added that 'the economic fundamentals of the euro area remain sound and support a favourable medium-term outlook for economic activity.' And, in what was seen as a hint that the bank would probably not hike the rate next month either, Trichet did not say the ECB was exercising 'strong vigilance' over inflation, which he has said in the past to signal an imminent hike. The ECB also left its marginal lending rate, at which banks can get emergency overnight loans, unchanged at 5% and the deposit rate stayed at 3%. Earlier, the Bank of England kept its key interest rate at 5.75% for a fourth month running, as expected, as policymakers sat tight amid rising concerns over the global credit squeeze. __________________ .."But finally the last thing I’ll say to the people who don’t believe in cycling, the cynics and the sceptics. I'm sorry for you. I’m sorry that you can’t dream big. [I]I'm sorry you don't believe in miracles. You should believe in these athletes, and you should believe in these people. I'll be a fan of the Tour de France for as long as I live. And there are no secrets" - this is a hard sporting event and hard work wins it - Armstrong 2005 TDF morelike hypocrisy.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode