Its offical

O

oompah

Mervyn King the governor of the BOE says we are in recession.
Can anything be done to prevent these cycles of boom and bust?.

I can remember the then chancellor D Heally back in 1976 going cap in hand to the IMF to bail us out.Thatchers government of mass unemployment and recession in the early eighties and now the recent bail out.
No matter who is in government their policy's don't seem to be any better than previous ones.
Incidently Mr King is about 12 months behind,the industry I work in(making and suppling kitchens)as been in the doldrums for a good 12 months.
Don't like to be all doom and gloom we are now mortgage free!(the wife and me that is).
 
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The key three-month interbank lending rate has fallen for the seventh successive day. He believes that, as far as the banking crisis goes, the corner has been turned.

The worry for the Bank is that inflation will recede so sharply that it will undershoot its 2% target as the economy bumps along through a recession
 
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And how will this help the man in the street if the banks/building society's don't or won't pass on any drops in interest rates.And is it likely to help about 7 million of us who have seen the value of a pension pot drop by about 30%.
 
Once the banks start lending to each other then we will see mortgages being made more available. This will start the housing market off again.

There will be a recession but I think it will be short but hard.

With regards to pension plans I know nothing about them so I am unable to comment but are you saying pensions are worth 30% less than you have put in or 30% below predicted values ?
 
Interestingly, a lot of tracker rates have gone up since the rate cut, due to the lenders widening their margin between their rates and the BoE rate. So much for passing it on...

Bilouboi, MK was clearly using measured language to limit the damage that he knew his speech would inevitably cause. It's all semantics and still resulted in the pound dropping substantially against the dollar, though.

Whoever maintains the country as a whole is not already in recession is living in cloud cuckoo land.
 
Bilioustrumpstaine said:
With regards to pension plans I know nothing about them so I am unable to comment but are you saying pensions are worth 30% less than you have put in or 30% below predicted values ?
Click to expand...
They are now 30% less than what was/is being put into them.If your pot was a 100k at the beginning of the year it is now worth only 70k and contributions are still being put in.So if say you were coming up to retirement in about 6 yrs are the government going to help out?
 
Do you mean this.http://www.dailymail.co.uk/news/article-1079521/The-massive-gold-plated-pensions-civil-servants-worth-700-000-EACH--funded-entirely-taxpayer.html
 
oompah said:
Bilioustrumpstaine said:
With regards to pension plans I know nothing about them so I am unable to comment but are you saying pensions are worth 30% less than you have put in or 30% below predicted values ?
Click to expand...
They are now 30% less than what was/is being put into them.If your pot was a 100k at the beginning of the year it is now worth only 70k and contributions are still being put in.So if say you were coming up to retirement in about 6 yrs are the government going to help out?
Click to expand...

But that is just how investments go, up and down. If it is a private pension then I doubt that the government will want to know. Pensions have gone wrong before, Equitable Life for one affected many peoples pensions was there a government intervention then ?

Won't time be a healer of the £30k loss as the markets recover ?

Have you actually lost any money, by that I mean is your pension pot worth less than you have paid into it ?

I heard somebody say that they have "lost" £50k on their house due to the current problems. This just does my head in :rolleyes:

The guy has had his property for over 15 yrs and has little or no mortgage on it, he has probably tripled his money on the house, hypothetically lets say the house was worth £500k at the top of the market and has fallen to £450k and lets say he paid £250k for it. Has he lost £50k or has he gained £200k.
 
Thats the trouble with this supposed credit crunch thing every body is dealing in make believe money,but when people go out on a saturday night and they go to the cash machine you expect real money so then this credit crunch turns real.So in the real world you would have to say yes the pension pot has lost real money and the house has lost real money.
 
I'll know we are in a recession when i have to let the gardner, the butler and the kitchen staff go
 
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