Cat Fan
Cats and stats
I don't know how many bike couriers have nursing degrees, or would be happy to work in social care.
Why single out couriers in particular?
How is raising interest rates supposed to help with the kind of inflation we are having now?
- Thread starter bimble
- Start date
Why single out couriers in particular?
Smokeandsteam
Working Class First
If effective price controls were introduced gouging would be impossible. But, of course, governments don’t intervene in the market in that manner because the market is the master
gosub
~#
Cos it's a mass market decadence interms of disposable income tell tail that there's still money to burn.
Get why it boomed during covid but it's froth. No where near as decadent as spending 200k to sleep with the fishes I grant you, buy it's mass market that does inflation
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SpookyFrank
A cheap source of teeth for aquarium gravel
Init. Three absolute no brainers.
_Russ_
Never not Knowingly Misunderstood
I'm not seeing the link to the success of deliveroo
brogdale
Coming to terms with late onset Anarchism
24 hr care limits the ability to leave the house, go out to shop, cook etc.
redsquirrel
This Machine Kills Progressives
Are these are conceivable within "the confines of the current political system" though?
I'm mean they are clearly not something a Labour government led by Starmer would do.
But even if Starmer fell under a bus and somehow a Corbyn/McDonnell/Burgon/whoever government got into power you'd have a government at war with the BoE and markets and we saw how that went for Truss.
Ska's question is a good one for the anything other than voting Labour makes you a Tory crowd.
If the range of actions is limited to 'pragmatic' choices what different choices are they expecting a Labour government to make?
gosub
~#
You cite the markets turning on Truss...at the very time the markets were giving her a kicking for unfunded tax cuts Labour were announcing unfunded public spending...
Thesaint
Active Member
I imagine the unexpected effect of higher borrowing rates might be on landlords who often have interest only loans so very exposed to rises. They could easily be seeing doubling of their costs over the last year but won't be able to double their rent.
If higher rates mean the property market stalls and first timers either vanish or can't afford as much, property prices themselves then fall and landlords face a second problem.If they all sell up, that aggravates this issue.
Either way defaults in loans to the banks will be a bit 2008 on steroids and our government has run out of bail out money this time.
interesting times.
If higher rates mean the property market stalls and first timers either vanish or can't afford as much, property prices themselves then fall and landlords face a second problem.If they all sell up, that aggravates this issue.
Either way defaults in loans to the banks will be a bit 2008 on steroids and our government has run out of bail out money this time.
interesting times.
Rob Ray
Weight is meaningless
Jeremy Hunt to ask UK regulators to investigate firms exploiting price rises
Chancellor to meet watchdogs to discuss claims that company profiteering is stoking inflation
Quite illustrative of the depth of the mess they're in this. Under current economic structures and dogmas there are no serious direct levers to counter price gouging spirals so Hunt's reduced to this farcical show of telling off a famously toothless regulatory sector, defanged by his own party to "free the markets," for not fixing things.
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Smokeandsteam
Working Class First
Jeremy Hunt to ask UK regulators to investigate firms exploiting price rises
Chancellor to meet watchdogs to discuss claims that company profiteering is stoking inflationwww.theguardian.com
Quite illustrative of the depth of the mess they're in this. Under current economic structures and dogmas there are no serious direct levers to counter price gouging spirals so Hunt's reduced to this farcical show of telling off a famously toothless regulatory sector, defanged by his own party to "free the markets," for not fixing things.
Yup. I’m sure once the CMA have ‘investigated’ whether or not grotesque price gouging is taking place this can be put behind us and we can focus on the real causes of inflation: Putin, the workers and spiritual forces….
It’s noteworthy that the focus of the ‘investigation’ also seems to be focussed on supermarkets and not the food producers where the evidence is overwhelming. Cargill for example turned over $168Bn last year
Smokeandsteam
Working Class First
Meanwhile, here’s Martin Woof in the FT demanding an engineered recession. Once Jeremy Hunt has eliminated price gouging as a cause of inflation here’s where he goes next.
One thing I hear a lot is the idea that interest rates comprise “the only lever the Bank of England have”. But this is not true. It’s the only emergency brake they have, sure, but when you’re in control of a vehicle, you don’t have to just use either full throttle or the emergency brake.
The BOE have a huge range of levers available to them that take the form of regulation of financial institutions. They decide what is acceptable in regards to lending rules, capitalisation, stress testing, consumer information and a whole load of other things that indirectly impact everything about the economy. They can target slowdowns and accelerations at different sectors of the market using these regulatory powers. They already do this. So please don’t be fooled by the “no alternative” rhetoric.
The BOE have a huge range of levers available to them that take the form of regulation of financial institutions. They decide what is acceptable in regards to lending rules, capitalisation, stress testing, consumer information and a whole load of other things that indirectly impact everything about the economy. They can target slowdowns and accelerations at different sectors of the market using these regulatory powers. They already do this. So please don’t be fooled by the “no alternative” rhetoric.
Cat Fan
Cats and stats
They have not really been "targeting any accelerations" recently, have they? And even if they do loosen regulation in a certain sector, there is no guarantee that companies will pass any savings onto the customer. It's 100% corporate and executive greed to blame for inflation IMO.
Course they have and they will continue to wherever they decide they want more market activity. They’re currently consulting, for example, on whether it would be a good idea to create incentives for life companies to use their reserves to invest in climate-positive developments (something that at the moment is effectively disincentivised). The Bank of England get to create the rules by which literally billions of not trillions of pounds are put to work. The idea that their power is restricted to setting borrowing rates is absurd.
You’re thinking way too small. This isn’t about retail customers. The man on the street is almost irrelevant to the game of finance.
Cat Fan
Cats and stats
It's not the BoE who launched the review of Insurance regulation, it's HM Treasury, and it's Brexit driven. The primary objectives of the regulator are market stability and policyholder protection, they will always put those objectives first before trying to help simulate the market.
And they're extremely risk averse and slow to react. How did their attempts to regulate crypto go? Scammers can run around the world before they get their boots on.
I did not say that it was
Not sure what you are getting at here but I think you and I are not on the same wavelength
SpookyFrank
A cheap source of teeth for aquarium gravel
Until the banks realise that by refusing to give anyone a mortgage they've taken the bottom three layers out of their jenga pyramid of voodoo bullshit.
Ordinary people provide all the wealth for the game of finance.
Just to say:
This is a different thing to what I was referring to. I am not talking about their review of Solvency II, I’m talking about just the routine operations of the BoE as they try to align regulation to wider aims. My point is purely that their levers over the economy are plentiful, and go well beyond setting interest rates
gosub
~#
Not happening yet, most likely will...rather now we more in the flogging shonky weathering kit phase
Ming
I shot a man in Reno...
Oh yeah. It's called 'managing change' in the management lexicon. Gradually boil the frog.
gosub
~#
Still can't get over the bloke on the main evening news last week who has been flogging mortgage til you are 80...how the fuck is that not the futures junk debt.
Short term think it's the wannabe landlord monopoly players who are going to take the hit likely to be more leveraged
Ming
I shot a man in Reno...
Rich landlords (be they sole traders or big players) will have the liquidity to get through it. For them it'll be a firesale.
ETA: I suspect a lot of that's been going on under the Tories. In all sectors.
magneze
🎧
Linky no worky.
brogdale
Coming to terms with late onset Anarchism
teqniq
DisMembered
Fixed. Apologies.
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