pumping another 75bn into the econamy..

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Originally Posted by GommeInc

They're not avoiding the pound, they're just avoiding spending all together. The drop in interest rates seems like a bad idea in my opinion... The savers are just going to avoid spending all together now... That's what trustees and anyone with a trust fund is doing at least, they run on the interest rate and people with savings accounts will halt spending because like many savers, they try to keep their money to an even amount meaning higher interest means more spent. Less interest is less spend, which is what aload of people I know are doing. It's had a negative effect so far :P

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There's like a tiny minority of people that actually rely on interest for their spending. I'm pretty sure the people you know who are spending less aren't doing so because there interest has dropped, it's hardly been passed on by the banks yet anyway.
I also think it's too early to say what the effect is so far, however i don't know if anyones noticed but housing sales have increased recently!
I agree with you on the pound though, when growth picks up i'm sure the pound will also, i don't think theres a chance we'll go to the Euro.

Good luck on it anyway, seems like your struggling a lot with this money economy problem.

America did the same as this by putting a lot of $bn into the economy, so if you think UK are the first then you'd be wrong, they are following in the US's footsteps. Although I am unsure if it worked for them lol.

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Originally Posted by Voiding

Good luck on it anyway, seems like your struggling a lot with this money economy problem.

America did the same as this by putting a lot of $bn into the economy, so if you think UK are the first then you'd be wrong, they are following in the US's footsteps. Although I am unsure if it worked for them lol.

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Yes; but america are still having problems though, it's globle..

We will see, I just don't know why they can't figgure it out.

People lose they're jobs, people cannot get loans.
People in process of losing job, thus don't trust getting a loan.

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Originally Posted by Anvrew

Irelands in the same boat.

:'(

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so is the rest of the world ...

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Originally Posted by no waiii

so is the rest of the world ...

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Isn't Britain being hit the hardest? All I see on the news is UK crisis and thousands of job losses.

Come join the Euro, just aslong as you don't ruin that :P

Quote:

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Originally Posted by GommeInc

They're not avoiding the pound, they're just avoiding spending all together. The drop in interest rates seems like a bad idea in my opinion... The savers are just going to avoid spending all together now... That's what trustees and anyone with a trust fund is doing at least, they run on the interest rate and people with savings accounts will halt spending because like many savers, they try to keep their money to an even amount meaning higher interest means more spent. Less interest is less spend, which is what aload of people I know are doing. It's had a negative effect so far :P

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You forget about people with tracer mortgages, they can save from what £60+ interest a month on mortgages, so they're spending more...

I can't see the UK ever going to the Euro, as along with the fact most are against it including gordon brown, if we adopted the euro then we don't control the interest rate; so we'd lose the main ability to tackle inflation when the recession etc is over.

only entrance has really shown a capacity of knowledge about the economy in this thread. so listen to him kiddies.

Quote:

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Originally Posted by Voiding

Isn't Britain being hit the hardest? All I see on the news is UK crisis and thousands of job losses.

Come join the Euro, just aslong as you don't ruin that :P

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id rather not.

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Originally Posted by Voiding

Isn't Britain being hit the hardest? All I see on the news is UK crisis and thousands of job losses.

Come join the Euro, just aslong as you don't ruin that :P

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Lots of jobs have been lost her too.
First it was Dell, Some Waterford glass, There the main ones anyway.