'Interest'ing Rate Cuts.

There's uproar at the Daily Mail website, in response to a piece in which it's reported that the lenders (many of which, by the way, have now passed last week's 1.5% interest rate cut) have told Alistair Darling they won't be passing on any further cuts, while the Libor rate remains substantially higher than the base rate.

Nor is it unusual... it's a response to mortgage interest rates we're hearing over and over again. And it's incredibly, astonishingly shortsighted. Has everybody - already - forgotten how we got into this mess in the first place?

Will more cheap credit really get us out? And who, in their right mind, would rather have seen the banks left to fail, taking savers, homeowners and businesses with them?

The banks weren't bailed out for the personal benefit of the directors - they were bailed out for the benefit of the economy. Furthermore, who really believes that cutting interest rates is going to prop up the housing market?

And - finally - remember that there are still some savers out there, people who didn't take advantage of easy credit but who behaved responsibly in the first place - who'd like to see their savings rewarded with a level of interest that at least keeps up with inflation.

These are unusual times my friend, sit back and enjoy the ride - if you can. It's much more palletable with a couple of slices of Dundee cake and an expresso - whilst enjoying these, things don't look all that bad, for a few minutes at least.....

Until the next time,

Mr Jackson.