spilldig Posted September 7, 2018 Share Posted September 7, 2018 [/b] But that's the problem, do they? This seems to be a rerun of the subprime crash of 2008, when banks were lending mortgages to subprime (unsuitable) people who were unlikely to be able to pay it back. This made the banks look good on the balance sheet and they hoovered up their bonuses before the fat hit the fan. When the chickens came home to roost and people defaulted on their loans in huge numbers, the banks went bust or had to be bailed out with quantattive easing. The public have been paying the price ever since with low interst rates and austerity. I agree. That's why I said they are not fit to be in business, and don't get me started on the low interes rates. ---------- Post added 07-09-2018 at 11:25 ---------- It doesn’t quite work like that. Austerity reduces aggregate demand in the economy. The individual austerity measures create short and long term costs to the economy too. Austerity can be counter productive. In the context of this thread, for example a rise in cases of poor mental health creates strain on services and an increase in sick days. Services need more funds to cope, and sickness reduces productivity and potentially tax take. On an individual basis the propensity to fall into debt can become greater. There are numerous scenarios where micro decisions accumulate into a wider macroeconomic effect. Neglected infrastructure another example. It has always been the problem with major parties, and the Tories in particular. Policies are just not joined up across departments. ---------- Post added 07-09-2018 at 00:45 ---------- You need to understand how banks lend, and what drives their policies and decisions. If you look back at the run up to 2008 then your argument will mostly collapse. And if you look at what happened since then you will understand how little has changed Lenders are not always responsible. What argument ? You may like to argue I prefer to call it a debate. ---------- Post added 07-09-2018 at 11:27 ---------- You mean living within our means? Exactly . Link to comment Share on other sites More sharing options...
truman Posted September 7, 2018 Share Posted September 7, 2018 No, I mean 0% interest and austerity. The fact that some people have had to resort to borrowing just to live is worrying, but for some, necessary. And as for borrowing to pay for extravagant luxuries - well, have they learnt nothing? If you're getting 0% you need to do a bit of work and move your money.. Link to comment Share on other sites More sharing options...
Obelix Posted September 7, 2018 Share Posted September 7, 2018 I guess it depends how you measure the performance of the economy. Today the FTSE All Share index is up about 20% since just before the referendum and reached an all time high in May this year having been on a general upward climb since the referendum. If only the value of Sterling hadn't fallen the same amount against the Euro and Dollar.... The FTSEAS isn't up 20% since the referendum either... a climb from 3650 to 4000 is more like 10%... in fact its value has fallen in relative forex terms.. Link to comment Share on other sites More sharing options...
lil-minx92 Posted September 7, 2018 Share Posted September 7, 2018 If only the value of Sterling hadn't fallen the same amount against the Euro and Dollar.... The FTSEAS isn't up 20% since the referendum either... a climb from 3650 to 4000 is more like 10%... in fact its value has fallen in relative forex terms.. It matters not but it was at about 3350 the day before the referendum so closer to 20% I think Link to comment Share on other sites More sharing options...
Obelix Posted September 7, 2018 Share Posted September 7, 2018 It matters not but it was at about 3350 the day before the referendum so closer to 20% I think 3481 actually. 4002 current price... so about 14% The usual approach to smooth out variations is to average the cost before hand to remove spikes otherwise you can easily cherry pick whatever you want. Regardless the value of the ftseAS is effectivly flat if not negative over the last couple of years. Link to comment Share on other sites More sharing options...
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