The Economy ....?

The US Federal Bank has slashed interest rates to try to boost the American economy. It can only be a matter of time before the Bank of England has to follow suit - meanwhile, the 6 largest utitlity companies cheerfully announce increases of 14%. If the B of E is scrabbling to give us back some money in order to stop a recession doesn%26#039;t the action of the profiteering Utilities co%26#039;s wreck the plan?

The Economy ....?fha loan

The short-term gains received from hiking up energy and other utility prices outstrip the longterm benefits of boosting people%26#039;s propensity to consume. CEOs have a mean tenure of less than 3 years in a typical western company and they will usually care more about their EPS-linked bonuses and options than the welfare of the common man or woman.

It%26#039;s the very sad state of modern capitalism: those that can handle the least will bear the brunt of market correction.

The Economy ....?

loan

The BOE is giving short term loans to the Banks to try and give them the confidence to start lending to each other. They are not trying to give money back to us. Higher utility costs are not related. Stupid borrowers/lenders should suffer, not savers through lower interest rates. Report It

|||Of course, and the oil companies are the same. Their responsibility is only to their share holders.|||Ok Wall Street is making this happen to make money, yes they get filthy rich at times like this. Oil speculators are responsible for high gas costs.|||Since we are basically capitalist countries and the utility companies have since been sold off (cheap), I doubt the Bo E can actually do anything to reduce their prices. They have a toothless watchdog, staffed by government cronies and a complete waste of taxpayers%26#039; dosh who cant really do anything about prices because they have no idea of the cost processes of these companies. They can only go for dinner and whinge a bit.

So to answer your question, the BoE has no control over these things all it can do is to reduce rates when necessary and hope for the best.|||Maxi Robert Spierre. has laid it out beautifully. everything he as stated is fact

I could write a foolscap page on the subject but it would only amount to the same|||What we are actually seeing is!The %26#039;death-throes%26#039; of an economic giantThe USA!Which is being propped up by other areas such as the EU and Japan!Did that incompetent Chancellor Gordon Brown sell our gold reserves at such a %26#039;knock down%26#039; price to prop up the US dollar!?|||Oil companies only (and similar) only give a sh1te about their shareholders.

I believe their powers should be taken away by nationalising much of the utility market... so price will have to drop for them to remain competitive. Same with private transportation companies; who have been exploiting customers for too long with high prices for too long.

(y)

=]|||The BOE should resist the clarion calls to reduce interest rates, because it is low interest rates that has got us into this difficulty in the first place. Why should savers, who we need more of and need to be encouraged with higher interest rates, transfer wealth, once again, to the feckless Banks and their borrowers, so that they can carry on binging. Make no mistake, they haven%26#039;t learnt their lesson and must be made to. House prices and borrowing need to be drastically reduced in order to achieve sound money for the future, even if we have to go through a painful recession. We have earned our recession. Remember, it is Greedy Banks and house owners who have reaped the benefit of this asset bubble, and it is they that should pay the price, definitely not savers.