What happens when the base rate hits zero

[LeeThePeople]

My savings are in an account that promises twice the base rate, in 12 months ive gone from 12% interest to only 2%. I know when it gets to 0% base rate im gunna get nothing but what if it falls, ive heard on the news it could go below 0%, think they said its called deflation? What happens then, I assume ill be getting 0% then and not owe the bank money?

[valve bounce66]

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

[MitchT]

What I want to know is... Why are personal loans still in the 8% ballpark? I once took out a personal loan at about 8% when the base rate was near 5%, so why are personal loans not now at about 4%?

[Boozy]

valve bounce66 said:

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

Sorry, I had to stop and re type this, do you actually believe it was all because of "greedy bankers?"
you're either heavily retarded and read the Daily Mail, or massively taking the wee and I've missed something.

Edited by Boozy on Tuesday 24th February 23:13

[valve bounce66]

Boozy said:

valve bounce66 said:

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

Sorry, I had to stop and re type this, do you actually believe it was all because of "greedy bankers?"
you're either heavily retarded and read the Daily Mail, or massively taking the wee and I've missed something.

Edited by Boozy on Tuesday 24th February 23:13

i could be taking the wee! or reading all the papers and looking at the news with the interigation of high profile w/managers,i wounder who the retards are ? i suppose the tax payers for there bonus ?

[valve bounce66]

valve bounce66 said:

Boozy said:

valve bounce66 said:

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

Sorry, I had to stop and re type this, do you actually believe it was all because of "greedy bankers?"
you're either heavily retarded and read the Daily Mail, or massively taking the wee and I've missed something.

Edited by Boozy on Tuesday 24th February 23:13

i could be taking the wee! or reading all the papers and looking at the news with the interigation of high profile w/managers,i wounder who the retards are ? i suppose the tax payers for there bonus ?

sorry edit,your not a banker are you ?

[Adam B]

valve bounce66 said:

i wounder who the retards are ? i suppose the tax payers for there bonus ?

thanks for throwing your hat in the ring, you get my vote

[BigLepton]

LeeThePeople said:

My savings are in an account that promises twice the base rate, in 12 months ive gone from 12% interest to only 2%. I know when it gets to 0% base rate im gunna get nothing but what if it falls, ive heard on the news it could go below 0%, think they said its called deflation? What happens then, I assume ill be getting 0% then and not owe the bank money?

Well, I have some interest only mortgages on rental properties and one for example has gone from £512 per month to £67. I can only assume if it goes below 0% they will start paying me!

[RobDickinson]

Base rate cant go below 0% but Japan has had 0.05% for ages.

What happens is they all invested their capital elsewhere , like in NZ (with a base rate of 8% or so at the time - now 5%).

[valve bounce66]

Adam B said:

valve bounce66 said:

i wounder who the retards are ? i suppose the tax payers for there bonus ?

thanks for throwing your hat in the ring, you get my vote

ding,ding bonus on,sorry thought there was a 100% morgage coming up and i can give you 8 times your salary thanks "ching,ching" throw your bonus in the ring !

[anonymous-user]

valve bounce66 said:

valve bounce66 said:

Boozy said:

valve bounce66 said:

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

Sorry, I had to stop and re type this, do you actually believe it was all because of "greedy bankers?"
you're either heavily retarded and read the Daily Mail, or massively taking the wee and I've missed something.

Edited by Boozy on Tuesday 24th February 23:13

i could be taking the wee! or reading all the papers and looking at the news with the interigation of high profile w/managers,i wounder who the retards are ? i suppose the tax payers for there bonus ?

sorry edit,your not a banker are you ?

He doesn't have to be. He obviously knows what's gone/going on, and doesn't just jump to conclusions based on what's in the (mostly leftist) media. It would be nice if people actually looked into something properly, instead of taking everything at face value.

[valve bounce66]

BigLepton said:

LeeThePeople said:

My savings are in an account that promises twice the base rate, in 12 months ive gone from 12% interest to only 2%. I know when it gets to 0% base rate im gunna get nothing but what if it falls, ive heard on the news it could go below 0%, think they said its called deflation? What happens then, I assume ill be getting 0% then and not owe the bank money?

Well, I have some interest only mortgages on rental properties and one for example has gone from £512 per month to £67. I can only assume if it goes below 0% they will start paying me!

[valve bounce66]

ZondaMan said:

valve bounce66 said:

valve bounce66 said:

Boozy said:

valve bounce66 said:

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

Sorry, I had to stop and re type this, do you actually believe it was all because of "greedy bankers?"
you're either heavily retarded and read the Daily Mail, or massively taking the wee and I've missed something.

Edited by Boozy on Tuesday 24th February 23:13

i could be taking the wee! or reading all the papers and looking at the news with the interigation of high profile w/managers,i wounder who the retards are ? i suppose the tax payers for there bonus ?

sorry edit,your not a banker are you ?

He doesn't have to be. He obviously knows what's gone/going on, and doesn't just jump to conclusions based on what's in the (mostly leftist) media. It would be nice if people actually looked into something properly, instead of taking everything at face value.

i think the banking system was pre warned up to 5 years ago,i have been reading the sun though

[Adam B]

valve bounce66 said:

Adam B said:

valve bounce66 said:

i wounder who the retards are ? i suppose the tax payers for there bonus ?

thanks for throwing your hat in the ring, you get my vote

ding,ding bonus on,sorry thought there was a 100% morgage coming up and i can give you 8 times your salary thanks "ching,ching" throw your bonus in the ring !

give me strength

base rates can not go less than 0%, inflation can - its called deflation
bankers who lent out 125% mortgages or stupid salary mutliples (step forward NR) are idiots asleep at the wheel
govts and regulators who allowed such excesses were asleep before reaching the car
people who borrowed on these terms are just as stupid, caveat emptor
I do not work for such a bank

[Adam B]

valve bounce66 said:

i think the banking system was pre warned up to 5 years ago,i have been reading the sun though

i believe you, truly

[valve bounce66]

Adam B said:

valve bounce66 said:

Adam B said:

valve bounce66 said:

i wounder who the retards are ? i suppose the tax payers for there bonus ?

thanks for throwing your hat in the ring, you get my vote

ding,ding bonus on,sorry thought there was a 100% morgage coming up and i can give you 8 times your salary thanks "ching,ching" throw your bonus in the ring !

give me strength

base rates can not go less than 0%, inflation can - its called deflation
bankers who lent out 125% mortgages or stupid salary mutliples (step forward NR) are idiots asleep at the wheel
govts and regulators who allowed such excesses were asleep before reaching the car
people who borrowed on these terms are just as stupid, caveat emptor
I do not work for such a bank

fair comment,you can see why so many people are brassed of at the moment though,including me,made redundant and savings barely making anything at the moment,anyway rant over over,i hope things improve quickly some what,all the best PAUL.

[valve bounce66]

Adam B said:

valve bounce66 said:

i think the banking system was pre warned up to 5 years ago,i have been reading the sun though

i believe you, truly

top man

[Adam B]

valve bounce66 said:

fair comment,you can see why so many people are brassed of at the moment though,including me,made redundant and savings barely making anything at the moment,anyway rant over over,i hope things improve quickly some what,all the best PAUL.

i can see why anyone losing their job is upset, and some banking practices are very much to blame (mainly in US but certainly excesses here in UK) but worth reading some quality analysis on the issue before shooting

lots of root causes

this stupid govt taxing pension dividends thereby forcing pensions to search for higher fixed income returns
US retail banks ludicrous lending practices (google ninja mortgages)
rating agencies rating crap as good and being paid by banks issuing crap
US regulators obsession on rules not principles
investment banks repackaging and selling crap, paying excess bonuses (to a select few)
this govt spending all the UK s reserves and sound balance sheet leaving us in a poor state to weather the storm
st regulators who don't understand what they are regulating or powerless to stop it

all the best
adam

Edited by Adam B on Wednesday 25th February 00:24

[anonymous-user]

valve bounce66 said:

ZondaMan said:

valve bounce66 said:

valve bounce66 said:

Boozy said:

valve bounce66 said:

were all fd with these greedy bankers making there bonus over the last few years ! i have mine in tesco at mo thought,still paying 5.1% with bonus for 1 year.

Sorry, I had to stop and re type this, do you actually believe it was all because of "greedy bankers?"
you're either heavily retarded and read the Daily Mail, or massively taking the wee and I've missed something.

Edited by Boozy on Tuesday 24th February 23:13

i could be taking the wee! or reading all the papers and looking at the news with the interigation of high profile w/managers,i wounder who the retards are ? i suppose the tax payers for there bonus ?

sorry edit,your not a banker are you ?

He doesn't have to be. He obviously knows what's gone/going on, and doesn't just jump to conclusions based on what's in the (mostly leftist) media. It would be nice if people actually looked into something properly, instead of taking everything at face value.

i think the banking system was pre warned up to 5 years ago,i have been reading the sun though

Quite right. It was warned by many commentators and economists etc, but the FSA decided not to act on them (seemingly because it didn't understand the complexity of many aspects). The government didn't do anything either, and nor could the BoE since its powers were removed by Brown. Who's at fault there? Yes, banks' top-brass made some truly awful decisions, but it's completely ignorant and unjust to refer to 'bankers' as a whole.

As for greed: greed is always present, not just in banking, and is not always bad. Making money is the raison d'etre for any commercial enterprise - don't tell me that's not some sort of greed. When the incentives for institutions remove the mutual benefits of market exchanges (that is, for buyer AND seller) through poor and/or intrusive regulation, or ill-defined rules, "greedy" behaviour becomes socially unproductive. That's when problems arise.