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?

And the deputy PM John Presecott has said he ate too many pies and cream cakes before throwing up in disgust.

Niel Lawson seems like a regular guy.

also HMRC are going to fine you now if you make a mistake on tax form.....they expect to raise another 1 billion........unbelievable.

HMRC msake mistakes but guess what happens. Yes, nothing.....they are arrogant too.

ps@ labour has always made a mess when in government....most are uneducated mainly and so lack intelligence let alone anything else

The Labour party have had 10 years to screw the Country now its the Tories turn.

The Tories must be hoping GB can cling onto the leadership until the Election

aye maddoctor

theres going to be a strike at grangemouth......little petrol for next month by looks of it.
i met a guy from manchester who helped run his dads business about 6 years ago......he told me then he was sick to death of britain.....you are not encoraged to be successful here.
anyway this pleasant quietly spoken young man was setting up in USA ....he said it was a breath of fresh air......sadly he was going to transfer as much business acros the atlantic.

theres 5 million brits abroad now which is about 1 in 10 of the population.....also we have the biggest emmigration of graduates than any other country in the world.
theres so many facts that tell you that uk is finished......my dad says that its just dross or babies / old people (as they cant be bothered leaving) who are left in UK.

mitzy

i'm not sure whether any person let alone a party would want power in next 2 years at least as country will get worse and worse financially.

theres predictions that housing will go down 25% in next 12 months and it will stagnate for up to 4 years also.
also banks are screwed with irresponsible lending etc......i think we should revolt about gov using our money again to bail out banks.
the banks are as evil as this government.

even under a REAL SOCIALIST like stalin, this increase in tax, dodgy corrupt banks etc etc this would never happen.....and we have massive violence, social unrest, huge immigration problems, unknown terrorists etc........all this would never happen under stalin who was a real socialist

I can see huge problems ahead scotinvestor with inflation and unemployment plus house market will fall for the next 2 years so whoever gets in will have big trouble sorting the mess Brown has caused.

Just running against the grain and acting as devils advocate.
Can we just be clear on one thing. If we take away the credit liquidity problem, there is no pressing argument for a drop in house prices, apart from media speculation becoming self fulfilling.
When measured historically, rather than recently, all the drivers of property are still good. Inflation, employment, supply shortages. When compared to the last few years, they do not look as good so an argument for stagnation is possibly reasonable, but take away the credit crisis and there is no reason for a crash.
I work in the industry, and maintain high level contacts within, and believe me, there is high pent up demand.
One broker of mortgages, with 200 advisors, reported on Friday a pipeline of 100m of lending, on offer and awaiting completion, plus much more awaiting offer or underwriting. They estimate this is less than half of enquiries they have and that but for the crunch, would have record pipeline business.
It is clear that many wanting to remortgage or buy are waiting for stability, not in employment, inflation or the housing market, but in the financial markets. Once this stability returns, so will they.
In conclusion. If the credit crunch abates, the downward spiral and lack of confidence will become a virtuous circle with rising confidence, as houses move and prices stagnate or rise.
As for oil prices and civil unrest, that is a different debate, but how much of oil prices are due to a lamentably weak dollar?
I for one understand anyone wanting to leave Blighty. I myself am busy talking to Canadian regulatory authorities about my qualifications and experience and how they may be applied there, but that is for very different reasons.
All IMO, but I am at the sharp end of the credit crisis and know what the public is saying in numbers, as well as the lenders take on it.
Alan

Its such a shame how many people are leaving the UK, and these are often the people we can least afford to lose. I have many friends and family who would like to leave now, and some already have, in some cases taking a large amount of money out of the country, and skills. Must admit I left last year for a better way of life, but I do miss the Pubs and Indian restaurants, not the traffic though.

10% tax , what a winner, he is a goner. It took a year too stab him, good old back benchers.

hewittalan6, when you say there is all this pent up demand for loans, I wonder what percentage would be recognised as good quality (i.e say 20-30% deposits). More liquidity may about to be released into the market via BOE and shareholders but I think this will ease the position with quality business and assist in preventing a steep decline. Infact, it is felt in some quarters that interest will not fall so much as a result. We have not yet seen the extent of bad debts with credit cards and other personal loans which could be the next worry, especially if unemployment rises.

his next plan is to become owner of Raith Rovers football club......nationalise them....and then pour 1 trillion pounds into the club from government ala taxpayers money.......raith rovers will then become the best football team in the WORLD........NOW THAT IS A VISION FOR GB.

jes, just hope he doesnt read this.....he may take up this idea, lol

Oil at $118 tonite and petrol at the pumps heading to 150p a litre thanks to the ingenious labour tax the motorist till they stop driving global warming policy..

and people will still vote them in.

Doesn't matter who you vote for their all pretty much alike and untrustworthy. Personally I think the UK Independance party are the best as I see little gain being in Europe in comparison to staying independant. No doubt in another 50 years time their will be a global council where we are subsidising and giving money away to those who we today are at war with..

petrol running out here in scotland already right now......i topped up here this evening and one of the 4 pumps was already out of use.....queues are running about 15 yards outside petrol station........the strike aint starting till friday i think

scotland will be at a standstill soon and this is supposed to last a month!!
40 platforms in north sea might have to cut production......its been falling for 3 years year on year anyway.
the big boys like shell want out of uk with its high tax burden.

jes, the oil is just oot there.....i can almost see it.
need to buy a rowing boat or something

Raith Rover GRETHA.110P A LITRA

Read this morning that Gordon is meeting bank chiefs to persuade them to pass on benefits to mortgage holders. Quite right too. Rates are down 0.75% yet mortgage rates are up.
However he is making one short sighted and big mistake. He is asking them to help those in trouble, with easier terms and repayment holidays. Short term this will help those in trouble, but longer term the banks will remember this and build the risk of the government asking for it agian into rates and criteria, and the buyers of mortgage backed securities will not want to come back to a market where the government is interfering with the terms of their investment when things go wrong.
Let nature take its course, Gordon. The market will ensure rate cuts are passed on eventually, and strict default procedures give investors faith in the book they are buying.

12billion RI at RBS.

200p each

I thought the credit crunch was due to the market forces of capitalism working at its greedy best.

Also, I think the precursor to the sub prime market was partially due to the low lending rate of the Japanese which provided cheap cash sloshing around the world, allowing varioud finnanciers to make easy money!