Brown's spend, spend, spend during his Chancellor's days has brought us into the current economy we are facing today. His appeal at a Downing Street meeting for the lenders to pass on cuts appeared to fall on deaf ears with HBOS, which owns the Halifax, increasing its rate on some mortgages from 6.09 to 6.59 per cent. Borrowers taking out this type of deal will now pay 46 more a month. On a two-year tracker, the rate will increase from 1.49 points above base rate to 1.99 points, giving a current rate of 6.99 per cent.

Other lenders are expected to follow Halifaxs lead.

If the Government wants the banks to lower mortgage rates to home owners - why not just offer them through Northern Rock? Everyone would rush to the Rock to get the loans forcing banks to match the rates or lose the business? Or maybe the government would then run into bigger credit crunch?

H6, Ban the casino because that is gambling!

It's out now...the American taxpayers will have to put out $700 billion to start bailing out the America's banking system of bad debts.

This will means only more bad news - taxes will go up further, inflation rising and this would not mean recession will not be coming soon.

Would you like to phrase that ln English?

Alan--I think I should be compensated royally for all the duff shares I've chucked money at over the years!! I take your point and if it wasn't for the all the innocent millions caught up in the fall out from this mess--I would fully agree with you. The repercussions will last for years anyway but without a toxic pot which I assume will not be written off and therefore repaid eventually---as Bush has said tonight the financial institutions will fall like a pack of dominoes. We are all heading for such tight belts we'll hardly be able to breathe!!

The favourite shop of Messers Brown & Bush

lol!

Well done Hewittalan6, a picture tells a thousand words. PTH would understand it now.

Yep, nice pic Al :)

This was the sentence I was having problems with:

'would not mean recession will not be coming soon'

If you mean we're heading towards a recession, you're too late, we're already there!

Thanks for the pic Alan!

I thought pth was struggling with the double-negative, as I was, but you're right: recession is apparently already upon us and I would like to think that that means we could see an improvement soon, but I realise that is more the optimist within me than the realist.

These few days have been so exciting. Looks like the US deal is still not confirmed and may fail.

They really can't decide. :-)

mr.brown was on radio 4 the other day saying that there isnt a housing bubble.........

The sooner Brown goes back to haggisland the better he is a looser.

u r quite a racist person arent u mitzy

pity you didnt go to school mitzy as you cant spell.

At least I won my B & B will be 20p bet..

lol

by the way I quite like haggis... funny that.

at least i won? what u gibbering about.

u make most silly comments mitzy but i'll base that purely on your low level of education and ignorance.

And just what level gives you the higher ground, scotinvestor?

It's good to see the bailout plan by Bush failed otherwise Gordon would use the same idea on us.



Wall St sinks as House rejects bailout bill
AFX


NEW YORK, Sept 29 (Reuters) - U.S. stocks plunged on Monday as the U.S. House of Representatives rejected a $700 billion financial sector bailout plan, renewing fear about frozen world credit markets and the global economy's health.

The House vote shocked financial markets, which expected it to approve the Bush administration's rescue plan. The Dow at one point fell more than 700 points, its biggest intraday point decline ever, while the Nasdaq and S&P dropped more than 7 percent.

The Nasdaq was on course for its biggest one-day slide since the market reopened in the aftermath of the September 11, 2001, attacks.

'I can't believe they weren't able to come together and come up with a solution. Complete disaster was predicted if it didn't pass,' said Stephen Berte, senior equity trader at Standard Life in Boston. 'Everybody was expecting it to pass and it didn't pass. I can't see what the upside is right now.'

The bailout's failure in the House added to losses suffered after Wachovia Corp became the latest major U.S. bank to succumb to the global credit crisis.

Investors feared financial market turmoil would continue to spread around the world. In recent days, European authorities have been forced to step in and rescue a bevy of banks in Britain, Belgium, Germany, Iceland and elsewhere.

The Dow Jones industrial average was down 554.75 points, or 4.98 percent, at 10,588.38. The Standard & Poor's 500 Index was down 73.83 points, or 6.09 percent, at 1,139.18. The Nasdaq Composite Index was down 140.70 points, or 6.44 percent, at 2,042.64.

Financial shares were among the hardest hit, with Bank of America Corp, off nearly 10 percent at $33.02, leading the slide. The S&P financial index fell 8.6 percent. Regional banks' shares fell sharply, as investors tried to anticipate who could be the next victim of the credit crisis.

Apple Inc fell almost 15 percent to $109.23 after several brokerages slashed their recommendations on the tech bellwether. Shares of Google were down almost 9 percent at $393.54, not far from a two-year low of $380.71 hit earlier.

The bailout plan met heavy resistance from Republicans, with the final tally of 228 lawmakers voting against the bill and 205 in favor.

Earlier, European authorities were forced to step in and rescue a slew of European banks, while U.S. regional bank Wachovia sold most of its assets to Citigroup in a deal brokered by the Federal Deposit Insurance Corp.

Global money markets remained paralyzed, even as central banks, including the Federal Reserve, pumped cash into world markets in an attempt to boost liquidity.

It's going to be bad, I fear. and it's mostly "fear" that has created the aftermath, once the Sub-prime fiasco was unearthed.

A fall of 7% is surprising - somewhat less than many Bankers were trying to tell us . . . did they just want some more cheap-money to fritter away?

At least this will shake out the weak

Hold onto your wallets!


Just watching the TV ( ads today) - B&B still advertising mortgages - does ITV/Ch4 expect to be paid? Perhaps they demanded cash with order! Ho-Ho.
Yesterday I saw an ad by Halifax . . . . . . . even showing how they had "better" rates than LLoyds . . . . . . . their new Masters must be fuming!!!

Ho! Ho!

This is getter worser the bail out was a false start and the market will fall 300 points on Tuesday now what is Gordon the gofer going to do nationalise all the banks and forget it ever happened..