Taxi Driver Online

old saying

"never a borrower nor a lender be"

Well, I'll give it one last go.

You said, in relation to the causes of the recession:



and



and



Now, if I can summarise all this, you're saying that low interest rates were not a factor in causing the recession.

You then said:



I've emphasised your phrase 'on their own', because this means that you acknowledge that low interest rates are a factor, which to my mind contradicts your three similar points above.

Now your latest post says:



Err, I thought we were talking about the causes of recession, but now you seemed to have changed tack and started talking about the causes of INFLATION!

However, the Bank of England's monetary policy committee's specific remit is to TARGET AN INFLATION RATE USING INTEREST RATES.

And I'd be very surprised if you can find one economist (or anyone with a bit of common sense) who says that interest rate policy isn't a factor in inflation.

Anyway, I'm not wasting any more time on this because I couldn't care less what you think, you clearly couldn't care less what I think, and clearly no one else cares enough to comment either way.

Don't know about all the Egg cards that were withdrawn, but one I saw on the TV said she paid off her balance each month and thus Egg weren't making any money off her, thus it wasn't because she was a risk, it was because she wasn't profitable.

I saw someone else who was paying off a credit card but the company wouldn't let him INCREASE his direct debit - clearly because the more he reduced his balance, the less interest the card company would be earning.

As the others have said, if you pay the balance off each month you basically have an extra wodge of cash to spend the first month you get the card.

Say you spend a grand a month on it. When you first get it you could buy a new computer worth a grand, say.

Next month you use the card to buy your normal stuff - fuel, groceries etc.

The cash you would normally use for that is used to pay off last month's balance and this continues each subsequent month.

Thus you've got a nice new computer courtesy of an interest free loan.

That's why a few years ago the card issuers started adding a fixed monthly fee, because those paying off their balance each month were earning the company nothing in interest charges, although I don't think all of them charge.

There's also some kind of extra legal protection for goods bought by credit card - can't remember the details, but some advise always to buy big items on a card for this reason.

s75 Consumer Credit Act 1974.

There was actually a bit about this on BBC News this morning. Under the Consumer Credit Act you get extra protection on credit card purchases between £100 and £30,000.

If you use PayPal, for example, you don't get that same protection (but you do get more protection if you use PP on ebay, because they own it).

However, the problem with using a card on the internet is of course the potential for misuse, and of course sellers on the likes of ebay perhaps won't accept credit card payments.

Fae Fife, you really should try and stay in touch with yourself - there you are trying to be clever by nit picking and twisting every word that is put to type. You then try to be sarcastic by saying that I switched track in mentioning the word "Inflation" and not talking about "Recession" Umm hello, I think your quote mentioned it on page three, so keep a check on yourself as it was you who brought it into the equation.



P.S If you are going to nit pick i.e cross the Ts and dot the I's the word is Economy not ecomomy.









Nothing contradictory whatsoever and no factor whatsoever - again plain and simple put interest rates at whatever level you like and it then comes down to how you lend it out - the proof is in the pudding with credit cards that you are now talking about, some have extortionate rates whilst others at one stage as you acknowledge had 0% which was very nice.

I stand by what I have said overall.

However what I will do is to put my hand up and admit that a gremlin crept into my keyboard, the word "Inflation" came into my post ( by my hand/finger) and that I did mean "Recession" yes I know two different words - but nevertheless a mistake.

And finally (again) - I am not perfect but I do try to stick to my beliefs and to try look at the big picture, from time to time we will agree to disagree and quite frankly it would be bloody boring if we all agreed with each other all of the time.

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if you cannot be yourself, then who can you be.