Comments on: The unkindest cut: the BoE got it wrong http://www.creditwritedowns.com/2008/11/unkindest-cut-boe-got-it-wrong.html Sat, 21 Nov 2009 08:48:41 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: hortonheardawho http://www.creditwritedowns.com/2008/11/unkindest-cut-boe-got-it-wrong.html/comment-page-1#comment-590 hortonheardawho Sat, 08 Nov 2008 19:47:00 +0000 http://www.creditwritedowns.com/2008/11/the-unkindest-cut-the-boe-got-it-wrong.html#comment-590 I would guess that the interest rate cut was to facilitate the rollover of existing debt. The alternative is a large number of defaults and a collapse of the house of cards.<br/><br/>We are living in interesting times. I would guess that the interest rate cut was to facilitate the rollover of existing debt. The alternative is a large number of defaults and a collapse of the house of cards.

We are living in interesting times.

]]> By: Alice Cook http://www.creditwritedowns.com/2008/11/unkindest-cut-boe-got-it-wrong.html/comment-page-1#comment-588 Alice Cook Sat, 08 Nov 2008 16:34:00 +0000 http://www.creditwritedowns.com/2008/11/the-unkindest-cut-the-boe-got-it-wrong.html#comment-588 Oh yes, the MPC got it wrong alright. <br/><br/>Negative real interest rates are just about the most distortionary and damaging thing a central bank can foist upon a capitalist economy. It erodes the incentive to save, distorts bank balance sheets, and invariably leads to inflation. Oh yes, the MPC got it wrong alright.

Negative real interest rates are just about the most distortionary and damaging thing a central bank can foist upon a capitalist economy. It erodes the incentive to save, distorts bank balance sheets, and invariably leads to inflation.

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