steviedeluxe

UK (and Spanish) car firms will get European funding

bbc report

Fairly small stuff compared to the 100s of billions being made available to the banks, but it's a start

Can anyone guess what the level of inflation will be next year?

livit

Spanish banks have recieved 39 billion Euro`s by the EU.

whitelinen

I thought that the EU gave money to farmers, not banks.

livit

The European Central Bank operates the same as the Bank of England.

"Spain might be unable to set its own interest rates, but it does appear that its banking system is being propped up very generously by the European Central Bank, as Ambrose Evans-Pritchard points out in today's Telegraph".

The fall of the Euro may well be caused by over extending membership to countries who are developing rather than developed.

Many view the reason the UK hasn`t joined was this concern that the current crisis could bring the collapse of the EU.

Once the ECB starts suffering there isn`t much that can be done to save it.

A bit like London before it caught fire, only took a small mistake in a bakery to destroy a city.

bigglesworth

Come on Stevie, not a fair question! Anyone who could forecast that with accuracy really would be a genius.
BUT, it may be different in the UK and in Spain.
UK last food price inflation figures I saw were nearly 7 percent. Council tax this year the smallest I have seen. Across the board about 3 percent I think.
Train fares increased by 10 percent here, I think 7 percent nationally. Stripping out the reduction in VAT, the last increase in CPI should have been about 4.1 percent I think Liam Halligan estimated.

And all that is before the Bank started printing money. So I would think you can be pretty certain that it will be higher than now.

Personally, I think double figures by the Spring.

Beachcomber

According to the Chief Economist of the Bank of England interest rates will 'increase with vigour' to keep inflation in check.

http://www.telegraph.co.uk/finance/e...economist.html

I can't wait!

bigglesworth

Note the weasel word "could" in the link. Absolutely not the same as "will", or even "would".

Besides, if they wait till it appears, they will have missed the target.

Given that they failed to raise rates in 2003 and 2005/6 when it would have forestalled the bubble, I don't think I will be holding my breath.


But we can hope can't we?

jdr

Mmmm, I remember having a mortgage that rose to 14 %
Surely not again at this time with all the silly mortgages about now.

Beachcomber

Those were the days. I made a fortune just by keeping my money in the bank!

bigglesworth

Maybe Gordon, an "ex" Marxist, remembers Marx's dictum - History repeats itself, first as tragedy, next as farce - and is bent on making it come true?

livit

When govt start printing money, inflation rises.

Cost of living will increase substantial, shoppers stop buying beyond necessities.

Mortgages stagnate.

Situation melt down.

Maybe time we chose politicians for there business qualifications rather than there popularity.

You wouldn`t employ a person without seeing there CV.

Yet voters decide.

jdr

But not as much as I made on my house in a few years, my property went up about 400 % by the time I sold it.

Econ

Well Europe only gives money to those that have lots of it or as a carrot on a string to suck other fools into it's trap, and the Spanish banks being the richest in Europe if not the world what would you expect!

livit

That`s a long shot.

bigglesworth

If Europe is the answer, you have to wonder what the heck is the question?

http://www.telegraph.co.uk/finance/c...n-demands.html

Scarey stuff