[Sixstrings]

Interest rates could be slashed to zero for the first time in UK history as the Bank of England battles the deepening recession.

Governor Mervyn King said he is ready to reduce rates to ‘whatever level is necessary’ to counter the economic storm.

He warned Britain’s economy could shrink by at least two per cent during 2009, pushing inflation into negative territory for the first time in almost half a century.

A worst case scenario could see a slump of over three per cent in gross domestic product (GDP) - the biggest year-on-year fall since the beginning of 1981.

http://www.dailymail.co.uk/news/article ... onomy.html

[Concerned]

Interest rates could be slashed to zero for the first time in UK history as the Bank of England battles the deepening recession.

Governor Mervyn King said he is ready to reduce rates to ‘whatever level is necessary’ to counter the economic storm.

He warned Britain’s economy could shrink by at least two per cent during 2009, pushing inflation into negative territory for the first time in almost half a century.

A worst case scenario could see a slump of over three per cent in gross domestic product (GDP) - the biggest year-on-year fall since the beginning of 1981.

http://www.dailymail.co.uk/news/article ... onomy.html

Bob Mugabae will be proud of us one day promises Bank of England.

We still haven't worked out that creating debt and phony asset valuations based on that debt does not equate to real wealth.

[kokoda]

Next step is that they will pay you to take their money.

[Kristen]

When will they grow some balls and explain that the whole Lasse-Fair Capitalistic way is flawed. There are limits to growth. Its so simple and apparent.

If they really do hit the zero mark, good luck getting back up there champs.

[Eli]

They need to finish that statement.

We will slash interest rates to zero but it won't matter because you will be out of a job.



You can slash rates all you want but broke is broke no matter what the vig.

[Kristen]

It sounds like you've left me with only two choices Eli, my firend.

a handful of valium or a handful of xanax.

[threadbear]

Next step is that they will pay you to take their money.

I think this might actually happen. Maybe you'll get tax credits, or something.

[Eli]

Now Kristen that is no way to think.

This is bad, but it all had to end, people had a very distorted sense of reality. We all were liven too high on the hog.

At the end of the day there will be a new heaven and a new earth and there will be no more death or mourning or crying or pain, for the old order of things has passed away.

[Eli]

Next step is that they will pay you to take their money.

I think this might actually happen. Maybe you'll get tax credits, or something.

Bear when that happens we will all be paying 1000 bucks for a loaf of bread. That is the worst situation possible.

It will lead to complete social breakdown. p.s. that is where we are headed.

[ReverseEngineer]

Next step is that they will pay you to take their money.

I think this might actually happen. Maybe you'll get tax credits, or something.

This is the solution to the unemployment problem. Goobermints will pay people to borrow money and spend it. For every $1M you borrow, you will get a 5% commission, $50,000. To qualify, you have to be able to lose the $1M in 20 minutes or less on the Stock market, so the money dissapears into a black hole and doesn't contribute to inflation. Making any money off the investments immediately disqualifies you as a borrower.

Around the time the Fed dropped the interest rate to 2% and it didn't do a damn thing to stimulate the economy, one would have thought they would get the CLUE that making borrowing cheaper wasn't working. What do you DO with the money you borrow when ALL asset classes are devaluing? As soon as you buy something, it immediately is worth less, soon to be worthless. So even if you got the loan at zero interest, you are stuck with having to pay it back but the money is now GONE. Who would loan out money in a situation like this and who would be stupid enough to borrow it?

Honestly, the Fed could not PAY me enough to take their loans, unless of course I had a written contract saying I would be bailed out for any losses I took with the money. This actually IS the deal they give to Morgan Stanley and AIG of course. However, they aren't going to turn around and loan out the money to anyone else. Why do that when you can use it to fund junkets to posh resorts instead?

Reverse Engineer

[Twilight]

Unfortunately on this occasion the BoE / UK government is not obviously lying. They have pre-announced ZIRP, unfunded tax cuts, higher public sector borrowing, Keynesian deficit spending on infrastructure, all the support the banks need, and branded deflation an enemy. I believe they mean it. Until the mass defaults begin, the GBP will continue to go down the toilet. Based on where we are on the timeline in relation to the way things unfolded in the US, that "recovery" could be a year away and would only herald defaults exceeding the government's ability to fight fires. In the meantime our currency tanks.

One thing ZIRP does not fix is the unfinished construction on which recovery will be zero. Plenty of dark complexes out there for me to wonder who has that on their books. Who had that on their books before the taxpayer got it, anyway.