tag:blogger.com,1999:blog-29618513.post6189343501667758450..comments2023-09-13T09:59:36.013+01:00Comments on snowflake5: January lending figures from the Bank of Englandsnowflake5http://www.blogger.com/profile/14700425293614182769noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-29618513.post-7595262388239884632009-03-17T18:39:00.000+00:002009-03-17T18:39:00.000+00:00Wrong Anonymous. If someone's disposable income ha...Wrong Anonymous. If someone's disposable income has increased by £200 due to interest rate cuts and they use £100 to overpay the mortgage/other debt and £100 for extra spending, their spending <I>increases</I> compared to before the interest rate cut, their debt <I>decreases</I> compared to before the interest rate cut, and the bank gets some money with which to pay down some of their money snowflake5https://www.blogger.com/profile/14700425293614182769noreply@blogger.comtag:blogger.com,1999:blog-29618513.post-44220499865885395582009-03-04T10:32:00.000+00:002009-03-04T10:32:00.000+00:00Muddled economics Snowflake. If too many citizens ...Muddled economics Snowflake. If too many citizens start piling cash into paying off their debt then spending will drop dramatically and the recession will deepen. This is analogous to the 'Paradox of Thrift' in savings as identified by John Maynard Keynes.Anonymousnoreply@blogger.com