pumping another 75bn into the econamy..

[blanky12!]

So, do you think they can get it this time? I don't I'm not sure but most things are SCREWD!"

http://news.bbc.co.uk/1/hi/business/7927100.stm


TODAY:
ITV shread jobs

BIG INSUREENCE COMPANY LOSES money

http://uk.biz.yahoo.com/090305/214/ihv3t.html

[Anvrew]

Irelands in the same boat.

[mangle]

Throwing 75bn into the economy may help us in the short term, long term not so much. Value of the pound will continue falling, with this extra cash it will fall at an even faster rate.

[scottish]

If you knew about economics; the arguement is fiscal policy takes affect in long term not short term; so the scenario with the tax last year will take affect in the long term

now since they dropped interest rates and are going to increase the money supply (quantative easing) it will take affect in short time; so eventually both will be kicking in and inflation will increase again.

but support higher inflation is better than a depression, eh.

[blanky12!]

If you knew about economics; the arguement is fiscal policy takes affect in long term not short term; so the scenario with the tax last year will take affect in the long term

now since they dropped interest rates and are going to increase the money supply (quantative easing) it will take affect in short time; so eventually both will be kicking in and inflation will increase again.

but support higher inflation is better than a depression, eh.

Guess so.. It's getting really bad in my town, so many shops are shutting down and all..

I hate to think what AIG are doing with there record loss of 63bn..

My friends think it will last for a long time if this doesn't work, we just all need to start spending again!! Thats the problem!

[scottish]

Yep but people are like "oh i'll keep the money incase an emergency" due to all the publicity about the recession etc, so spending goes down.

[Hazza]

The pound will just get weaker and weaker till its nothing. Its happened before, itwill happen again. Then we'll be the Euro... You watch.

[Ramones]

The pound will just get weaker and weaker till its nothing. Its happened before, itwill happen again. Then we'll be the Euro... You watch.

Why? I don't think they'd let that happen, as shown from the ruthless interest rate fall!

[Hazza]

They didn't think it would happen before, it did.
By pumping more money into the economy means that money is becoming weaker. People are avoiding the pound really.

[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