Comments on: Between Northern Rock and the hard place of the money markets. http://www.johnredwoodsdiary.com/2007/12/07/between-northern-rock-and-the-hard-place-of-the-money-markets/ Conservative Party Candidate for Wokingham Mon, 22 Mar 2010 08:29:11 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Tony Makara http://www.johnredwoodsdiary.com/2007/12/07/between-northern-rock-and-the-hard-place-of-the-money-markets/#comment-14359 Tony Makara Fri, 07 Dec 2007 14:13:21 +0000 http://www.johnredwoodsdiary.com/2007/12/07/between-northern-rock-and-the-hard-place-of-the-money-markets/#comment-14359 John, do you think the 25 point cut was a token gesture to appease prominent critics like yourself or a sign that the MPC will continue to make piecemeal cuts for the immediate future? Also How do you think that stands in relation to the ECB decision to leave rates unchanged and the deferential between Sterling and the Euro? Reply: I think the MPC gave into pressure, and will cut again unless the currency falls too far too fast, bank lending picks up and threatens more inflation. John, do you think the 25 point cut was a token gesture to appease prominent critics like yourself or a sign that the MPC will continue to make piecemeal cuts for the immediate future? Also How do you think that stands in relation to the ECB decision to leave rates unchanged and the deferential between Sterling and the Euro?

Reply: I think the MPC gave into pressure, and will cut again unless the currency falls too far too fast, bank lending picks up and threatens more inflation.

]]> By: Letters From A Tory http://www.johnredwoodsdiary.com/2007/12/07/between-northern-rock-and-the-hard-place-of-the-money-markets/#comment-14344 Letters From A Tory Fri, 07 Dec 2007 10:10:02 +0000 http://www.johnredwoodsdiary.com/2007/12/07/between-northern-rock-and-the-hard-place-of-the-money-markets/#comment-14344 I can just see the government's position getter weaker and weaker as times goes on, to the point where they just palm off Northern Rock in a cut price deal that ultimately costs the taxpayer huge sums of money. I think the bidders know the government has a poor bargaining position and will exploit it - which they are perfectly entitled to do. http://lettersfromatory.wordpress.com I can just see the government’s position getter weaker and weaker as times goes on, to the point where they just palm off Northern Rock in a cut price deal that ultimately costs the taxpayer huge sums of money.

I think the bidders know the government has a poor bargaining position and will exploit it – which they are perfectly entitled to do.

http://lettersfromatory.wordpress.com

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