Rate cuts: the losers and bankers of a failed system

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 5 August 2016

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

The whole financial system has failed us.

Bankers not content with stealing £500bn in the financial crisis have just been handed billions more by their boss at the Bank of England in a desperate attempt to prop up the economy.

We have the lowest level of home ownership for 30 years – to the point of ‘national emergency’.

The economy is regressing.

House prices are falling.

The pound is collapsing.

Foreign companies are queuing up to grab our cut-price industrial crown jewels.

As well as printing more money to hand to bankers this week, the head of the BoE Mark Carney also announced a cut in interest rates from 0.5% to 0.25% - tantalisingly close to zero.

People will borrow more and spend more, is the idea.

This time the bankers won’t keep the money for themselves. This time it’ll be different.

The economy will be saved!

Listen to Simon Lambert and Rachel Rickard Straus pull this argument to pieces as they explain the corruption and the social and financial divides that now define Britain.

Of course, there are other winners from the Bank Rate cut.

A few borrowers with tracker mortgages will pay less.

Also under the microscope:

Banks’ complaints procedures are still useless – don’t they just fob you off to the ombudsman at the first opportunity?

PPI refunds are still on the agenda – some people seem to have forgotten that banks just added it to loans without asking.

And cars. Thank heavens for classics and even the duff ones. They’ll always be there for a little light relief. Unless you’re not interested.

With Georgie Frost.

Transcript

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0:00.0	This is Money, brought to you in partnership with MS and I, giving you 100% security for your savings.
0:17.7	A very warm welcome to This is Money and Share Radio podcast in partnership with MS and I.
0:23.0	I'm Georgie Frost here with you on DAB across the country.
0:25.9	We are online and through the Share Radio mobile app.
0:29.2	I'm here every weekday from 9 until midday sharing ideas about money.
0:33.2	Now I'm joined today by editor Simon Lambert and personal finance editor Rachel Ricard Strauss
0:38.0	to go through some of the stories that they've been looking at this week. And Brexit
0:42.8	Bazooka, the Bank of England takes action. By acting early and comprehensively, the MPC can reduce
0:49.4	uncertainty, bolster confidence, blunt the slowdown and support the necessary adjustments in the UK economy.
0:55.1	So the base rate cut billions pumped into the economy to try to prevent the UK from falling into recession.
1:00.4	Just who are the winners? Who are the losers?
1:02.8	They're absolutely now convinced that there's nothing to be frightened about in the future.
1:07.0	They know that they can go out there and spend money.
1:09.8	I was slightly sceptical. If we have any savings, we're going to have less interest on our savings.
1:13.8	I am disappointed because there's interest rates going down because obviously we're losing out on some money.
1:17.5	Yeah, saving rates have already crashed, so does the cut mean more misery for savers?
1:22.3	And drop five-pound notes from the sky.
1:24.9	How do we stop bankers pocketing all the benefits of a rate cut?
1:28.1	Let me say this about the banks. The banks have no excuse not to pass on this cut in bank
1:32.5	rate and they should write to their customers and make that point. But not to get all
1:35.6	philosophical, why are we even here? Eight odd years after the biggest crash in living memory.
1:41.8	Simon takes aim at, well, the whole financial system.
	...

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