2.12765% off - or not.

[Sput]

God stu, you're such a commie.

[Stuart*]

God stu, you're such a commie.

I am as confused by the current situation as anyone else

[Stuart*]

I would actually refer you back to your own earlier comment: "perhaps it’s preferable for a recession to run its course rather than try to interfere and make things worse". I actually think there's a lot of truth to that - although that's not the sort of message that appeals to politicians... or the voters.

I don’t want to be proved right in that, but perhaps it’s the right course of action. I am not ruling out other solutions, though.

Something about FannieMae and FeddieMac I deleted for brevity!

Perhaps that’s the solution for you and me, but certainly not the preferred option of central or private banks, for the reasons I stated. They effectively lose the value of their assets, rapidly.

Of course they were the problem, everyone has accepted that. But there is no need to create a 2000s version of FNMA or FDMC in the UK out of the government’s part-ownership of banks, unless they need to. Those US institutions were a result of the 1930s recession, sold off badly, with management of the same ilk it seems.

I’m hoping for a solution to the problem, stop trying to tie it to a political mast on this forum.

[Mr Q]

Of course they were the problem, everyone has accepted that. But there is no need to create a 2000s version of FNMA or FDMC in the UK out of the government’s part-ownership of banks, unless they need to. Those US institutions were a result of the 1930s recession, sold off badly, with management of the same ilk it seems.

And ultimately, while nationalisation is undesirable, it could be an appropriate temporary solution in helping to stabilise financial markets. But temporary is the key word. When markets begin to recover, the government should divest itself of its stakes in any financial institutions or other companies it has bailed out. Politicians have enough troubles trying to run a competent government - I don't rate their chances particularly high of running a business well.

I’m hoping for a solution to the problem, stop trying to tie it to a political mast on this forum.

With respect Stuart, I have no problem with hope - but what I don't want to see (and for that matter, I don't think you want to see it either) are policies being adopted for the sake of doing something. To my mind, there is a very real risk that poor decisions made today could have long lasting ramifications. In truth, there is probably very little the British government can do besides the typical fiscal and monetary policy responses to economic downturns. The US was source of this crisis, and the effects of its bad policies have been exported around the globe - irrespective of how any other countries are governed or their economies regulated. This is a clear downside to the level of global financial integration to which we have become accustomed. Now, I still contend that the benefits of that integration greatly exceed any costs we are experiencing today. But we are all susceptible to shocks originating from the US. Hence the best we can 'hope' for is that American policymakers get their acts together and start addressing some of the fundamental problems they have created through their ill-advised interventions in the markets.

[barcode]

It so nice now that a wispa at 55p will now be 51p, I will have no idea what to do with my new extra 4p!

[Nick Harvey]

It so nice now that a wispa at 55p will now be 51p, I will have no idea what to do with my new extra 4p!

Maths not your strong point either, then?

55 minus 2.12765% equals 53.829793 I think.

I expect they'll round it to 54p though.

Now see if you can work out how many pennies you'll have to save to buy a calculator.

[barcode]

I take the 17.5 % off the actually price

then Put back on the 15%

[Sput]

Oh good, I thought I'd missed some detail about the proposals!

Barcode, 2% of 55p is 1.1p. Show your working and I'll get the red pen!

[rdobbie]

I think we can safely assume that Poundland won't be passing on this VAT cut to its customers. So their profits look set for a very tidy windfall indeed.

(Unless they do actually change all their signage and POS to "EVERYTHING'S 98p!" and fill their tills with massive quantities of 2p coins to give out in change, but I can't see it somehow)

[Nick Harvey]

I take the 17.5 % off the actually price

then Put back on the 15%

Okay, so (55-(17.5/117.5*55))*(115/100)=53.829792 if you want to do it that way.

Sorry, my quick method was 0.000001 of a penny out.

I'm sure that will bring the world to an end.

[barcode]

Oh good, I thought I'd missed some detail about the proposals!

Barcode, 2% of 55p is 1.1p. Show your working and I'll get the red pen!

calculator going in the bin!