Forward Guidance from the Bank of England

So what will happen as result of this initiative by the BoE ? Probably not a lot. Many businesses cannot get loans, as we both agree. Consumers are broke and have spent their savings. Consumers are also wary of taking on further credit because they probably owe money already.

The only comfort is to those people with mortgages, but even mortage interest may not stay low, unless the mortgage agreement is linked to BoE base rate. 

The BoE is hoping people will fall for the temptation to resume spending on credit, but this is unlikely to happen, because as I said in my earlier post, consumer credit is ridiculously expensive and has no connection with the BoE base rate. 

Credit where it's due Edward you make a good case for it not doing any good (no pun intended either) and you mention those with a mortgage, but if they go down the swanee the government has to re-house them and probably pay them benefits also, so surely it makes sense to keep the rates low in this case?

The only people to make any money when we lose our homes will be the Banks and the Building Society's again (I've been there, the b......s sold our house worth £495k 20 years ago for £175k) so we are all tied into a b....y mess that is going to take many years yet to escape.

Maybe a government advert on television saying 'pay it off' whilst you have the opportunity would be money well spent Edward; to remind them of the unique position that they are in right now, so yes I agree!

I know Edward you're right in what you say, but it's time the public was able to see through what various governments are up to.

However, I think the tide is turning, albeit slowly.

OK, there's some help to get out of this delema...but it will take the the rich to help the poor..and insurance companies...that would to be lend people the money to pay off their mortgages, without the banks...by personally fiancing the loan...and not charging interest, but holding an insurance policy on the house mortgage that if anything happens to the people for not paying off the loan..they get the place back. Old time bankers use to do this...it was kind of like having an persoanel  bank...my sister bought her first house this way...no bank was ever involved...she simply paid the old owner monthly payment for the purchase of the house..no interest included. She did have the right to sell it any time she wanted as long as she paid off the owner financing the loan for her buying it. The man she bought this house from was retired..his son was an banker, he set this up for them in writing....and as he said...as long as he had the monthly income it didn't matter if he  didn't charge interest fee's...all he was after was the retirement income every month. Any repairs she paid for herself and it had to be kept up to current livable conditions until she owned it free and clear...and/or resaleable. But an private person lending the money to an house already owned...it was an private drawn up loan...no middlemen were included between the owner and the buyer. It was not sold under real estate laws either..no realestate company involved..no pentlty points and all the rig a ma roll.  It was much like an person lending private money to someone that wanted to buy their car per se...but the car was backed up by private insurance against any loss that might occur on the deal..unitl ti twas paid off.. As I said, Mathew did this for her I suspect, because my sister was single and he knew an loan through real estate would probably never gone through from her at the time she bought it...women had an very hard time getting loans back then. It was an house his daughter had bought and she had passed away...and I think my sister reminded him of his daughter. it actually gave them an "friendship" through the years also.She would go an visit him every month with the house payment in person. So people like Jimmie Buffet could do something of this nature and with his money help others save thousands of dollars and lower housing costs and yet have his investment backed if needed against monetary loss. If anything happened to Matt while she was buying it, my sister paid his estate the money..or could seek an personal loan from someone else. If anything happened to her...his insurance policy paid him off and her estate got the house. The insurance on the loan was term life insurance my sister carried..she paid on her own,,naming Matthew the beneificary in the event of her death. They each had an copy of the policy as co-owners of the policy. That would get an lot of people out of their high priced interest rates on mortgage payments..esp. second loans. Right now our bank simply will not loan us an abilty to owe more on the house then what it is worth if we sold it...and they put that at 75 per cent of it's current resale value. Here soon the line is drawn with my hubby's abilty to take money on the house...he better think about it.  He's not so old that he doesn't need an house to live in as of yet if he lost it to indebtness..like his older brother/wife did their house. I shouldn't say this but in his family it's the in-law's that always seem to pull them out of their troubles. He knows ahead of time what the expenses are.he thinks that card he has is his private ticket to money to misuse it for things he don't need buying for others. he needs to listen and have an savings account and the butt head refuses to do it. Every finanacial advisor from here to Komo tells that..you have an savings account FIRST.....then think about what your buying and if it's worth it.  Then when something comes up unexpected...there's some money left to fall back on. Until everyone gets this through their heads...our indebtness will never go away. We fight very bitterly about this all the time. When I gave him back the money to handle...it was done with $15,000 cash for savings...with car insurance paid an year in advance...his poor way of handling money has seen me have to shell out $1200 for his medical insurance two years ago, and I'm on my second year of paying property taxes out of my checks...and all the bankers in town know for the fact he likes to think this house is all on his effort of  just his earning power. He is right  now to the point he pays all his wages for just interest charges. he yells at me for buying things like "grocieries"....I really wonder where his thinking brain is at times these days. Almost as bad as my brother Jim, when Dee Dee had to go in for the brain tumor operation I think he very much was so scared he lose everything hewanted her dead..I know he was thinking of divorcing her, just because he was afraid of losing his house. She admitted one day that she shares nothing of her pay check in helping hm finance things....I said What?..my hubby takes 6 months of my social sevurity checks for property taxes and the teachers keep wanting pay raises. I'm limited in funds as it is. Maybe that's why they said the people were going to keep raising prices until the women folk went into" revolution".. for the lack of money to feed and house their kids..and buy the necessities..