too little - too late!!!

Again, rather than leading the Labour government is following events.

On holiday during the Summer the Chancellor said, to most people’s surprise, that this is the worst financial crises since the Great Depression. Since the Chancellor knew the situation was so dire, why has no action been taken until now?

Some would say it's like reducing the price of smack because the addicts are starting to riot. I'm sure the Bank of England don't really want to do this in the current period of high inflation. We are really in a mess, as one symptomatic remedy inflames another disease. But the problems are global. I also remember when interest rates were much higher.

Chris Green - the delay is because we are run by Europe, not Westminster.

because they're just running this country into the ground now.
they've admitted defeat, just look at the jokers they've put into the cabinet!

all they're doing now is messing things up so that the conservatives have a hell of a lot to sort out when they get back into power!

Am I glad that I have a tracker mortgage!!!!!

here we go again everything's labours fault it's about time you lot woke up and smelt the coffee the whole world is affected by this

robboinho98 whare have you been for the last 11 years?
labours method of borrow borrow borrow has backfired now.

they all encouraged us to borrow vast sums of money because we where booming.

well the bubbles burst now and we're all paying the consequences.
im so glad i never borrowed and alternatively saved up.

alot of other people did and are in a dire situation.

The financial institutions, the Banks and the ‘powers that be’ you all blame!

If individuals didn’t have huge amounts of personal debt, mortgages they can’t afford and cars, holidays, jewelry etc paid on the 'never never', then they could ride the storm!

Greed for bigger housing, faster/posher cars, blingier watches, exotic holidays and the current trend for eating in over priced restaurants four times a week has fuelled these problems. I really believe the reason people get into debt for things they don’t need is because of our current obsession with celebs and TV. House buying programs, MTV showing the ‘fabulous life of some mouth breather in a fur coat with gold teeth’ drinking Crystal, vulgar branded bags for carrying stupid small dogs in and the list goes on! I witnessed two girls not a month ago in Selfridges buying a handbag, she was commenting on how fab it was and the fact Kate Moss has one as she handed over her credit card. Then I heard her friend say “600 quid, are you sure, that’s what we earn in 2 weeks”. I was gob smacked.

Don’t get wrong, luxury is fine, if you can afford it (genuinely afford not credit as such) then fine. But when you see attitudes like this is it any wonder why many people will go under in the current climate?

I am riding the storm comfortably, yes I can feel it and I don’t go out as often, however, I have no issues paying my way or meeting my commitments. Like I said the reason is I didn’t buy into the 'spend culture' that is now coming home to roost!

You can’t blame one side, its all sides. Governments, banks, financial institutions, consumers and the driving force for all of them, 'GREED'!

Hamish Macbeth - Europe didn't stop the Irish and then the Germans looking after their own interests.

A half a percent is not enough,shold have been two percent at least. Why are these Martians at the Bank of England worried about inflation? If nobody has any money,how is inflation going to be fuelled.?
The government should be doing what most housholds are doing.STOP WASTING MONEY!
Stop aid to other countries,stop throwing money at Europe,stop immigration and send home those that should not be here,fire a load of useless quangoes,stop the Guardian from advertising non-jobs,sort out scroungers and,to set an example,take a pay cut for MPs and town councillors.Look after the pence etc.etc.

Jay B oldham, where do you get the idea that the government lends money? This whole crisis was caused by the banks plan to make bigger profits out of people that couldn`t afford to borrow money (sub prime) it`s backfired and now the taxpayer has to bail them out despite the enormous profits they have made.

big g, sale i never mentioned the government lending money. but they encouraged it by letting the bank of england set low interest rates.
they also allowed the housing market to get out of hand.
the main culprits in this are the banks for lending irresponsibly, the estate agents for overpricing the property to catch more commision, the public for their greed in believing these over inflated prices and the government for sitting back and just letting it happen.

jay
thats everyone!

surley low interest rates would discourage lending, as it gives a smaller return on the risk?
it would encourage people to borrow more though

surley low interest rates would discourage lending? - citycentre.
well theres the proof. and we're now in this situation so it seems not

citycentre: "surley low interest rates would discourage lending, as it gives a smaller return on the risk?"

For a bank, the return is obtained from the difference between what they receive from borrowers and what they pay to depositors, so for them, the absolute interest rate isn't the issue, it is the difference between the saving and borrowing rates.

Depositors won't tend to be hugely influenced by rates, because, if they are planning to save, they will tend to do so, whatever the rate.

Borrowers, on the other hand, will tend to borrow much more when rates are lower.