[Politics] Interest Rate Review Thursday

[darkwolf666]

Ah 3% in one day if I remember correctly...all to do with the exchange rate mechanism and the link to the old Deutsche Mark

Nothing to do with Tory mismanagement as would have been the claim had it been a Labour government at the time.
A global downturn similar to the recent one, but with very different results!

 

[larus]

Interest rates should be raised, but the problem is the level if indebtedness in the country and the amount of overstretched household due to many not really understanding that we are in a truely exceptional environemtn here with this level of interest rates.

This had led to asset bubbles (stock market, house prices) which has only benefitted the wealthy. I know many youngsters will say it makes housing more affordable, but the reality is, it doesn’t, All it’s done is stoke house prices even higher to unjustifiable levels.

I voted no rise as we’ve been led here before by Mark ‘incompetent but I love the EU’ Carney, but I hope there is one. We need to get back to a sensible return on capital for savers/investors.

Let’s hope there is not another financial crisis anytime soon, as the western world has no tools left to fight anything. Maxed out on QE and interest rates too low.

 

[Daddies_Sauce]

BOE with a difficult decision to make. So much debt has been built up that I guess a number of people would now be in serious trouble if there was even a slight interest rate rise. Savers have been screwed for a long time now with very low rates of return, and it’s mostly our money that the banks have been lending out. Retailers must be watching with dread of a rate rise as Christmas spending would be likely to be hit and cut back by a number of households. My vote is for a 0.25% rise.

 

[bhaseeer]

Let’s hope there is not another financial crisis anytime soon, as the western world has no tools left to fight anything. Maxed out on QE and interest rates too low.

We are in one now, have you not looked at the derivatives bubble or the debt ceilings?

We are in a massive Fiat bubble.

I've moved away from Fiat into Crypto.......Fiat is dead......a sinking ship just about kept alive by the central bank's media (financial times, cnbc etc).

 

[larus]

We are in one now, have you not looked at the derivatives bubble or the debt ceilings?

We are in a massive Fiat bubble.

I've moved away from Fiat into Crypto.......Fiat is dead......a sinking ship just about kept alive by the central bank's media (financial times, cnbc etc).

Fiat currencies rely upon trust/confidence. If everyone tried to withdraw their ‘money’ the system collapses as we know.

The problem with a debt-based model is that it relies upon ‘growth’ to fund the banking parasites creaming their profit off for lending money which they don’t have. Capital ratios and all that crap.

I agree that the western models of capitalism having major failings, but any transition away will lead to the collapse of society. Bang goes law and order if money collapses.

 

[beorhthelm]

if not this week, rates will rise in the next 6 mths. the main inflationary pressure from currency should be filtering out, so the inflation is from domestic economic activity.
any one with a mortgage should know rates are execptionally low and be prepared for the inevitable rise, banks warn you and are supposed to build it in to their affordability calculations.

 

[beorhthelm]

I've moved away from Fiat into Crypto.......Fiat is dead......a sinking ship just about kept alive by the central bank's media (financial times, cnbc etc).

Cryptocurrencies are no different to fiat, or did you just ignore the creation of bitcoin cash and bitcoin gold from nothing? and the 1000 other cryptos spawned. the only difference is cyrptos are created on the whim of a few programmers, and have no controls. enjoy the crypto ride, be ready to cash out before it crashes.

 

[Lower West Stander]

Fiat currencies rely upon trust/confidence. If everyone tried to withdraw their ‘money’ the system collapses as we know.

The problem with a debt-based model is that it relies upon ‘growth’ to fund the banking parasites creaming their profit off for lending money which they don’t have. Capital ratios and all that crap.

I agree that the western models of capitalism having major failings, but any transition away will lead to the collapse of society. Bang goes law and order if money collapses.

I agree capital ratios are a load of nonsense, but the crap the banks sell in the markets is only there because the other side buys it. And the regulators seemed to have learnt nothing from the 2008 debacle when the FSA was round by that idiot Sants.

Totally with you on the last point though. Look at Venezuela.....

 

[Beach Hut]

Household debt has soared recently and all unsecured

We could be in for another rough time

 

[5ways]

Cryptocurrencies are no different to fiat, or did you just ignore the creation of bitcoin cash and bitcoin gold from nothing? and the 1000 other cryptos spawned. the only difference is cyrptos are created on the whim of a few programmers, and have no controls. enjoy the crypto ride, be ready to cash out before it crashes.

Surely the biggest bubble of all time.

 

[Berty23]

For about 10 years young people getting onto the housing ladder have had to stretch themselves ridiculously to afford a house and this is based on very low interest rates. Many of us have been artificially protected from the slump in the economy due to low interest rates meaning the lack of pay rises has been manageable. With inflation now massively outstripping wage growth and interest rates about to rise there will be a pinch. Those in their late 20s up to early 40s will be hit hard I suspect. Time will tell what happens next.

My guess is that house prices will fall quite a bit until older folks with money decide to buy more property making it even harder for young people to afford houses (as mortgages will become very expensive). I could well be wrong but rocky times ahead for many.

I am fortunate that at 38 I have about 95k left on my mortgage and always lived within my means and don't have unsecured debt but I have several friends who have lived the life of Riley and could be screwed by this.

 

[Beach Hut]

Surely the biggest bubble of all time.

I would disagree the biggest bubble soon to burst is billions of unsecured debt in China

 

[Cian]

I've moved away from Fiat into Crypto.......Fiat is dead......a sinking ship just about kept alive by the central bank's media (financial times, cnbc etc).

Crypto currencies are based on even less than fiat currencies. They're also so wildly variable they aren't a currency at all - they're unreliable investments.

 

[Steve Foster]

Be very surprised if no rate rise given inflation going upwards.

A big shock to quite a few if they do as many think current interest rate is normal of which it is definitely not.

Some of us mortgage veterans remember Lamont sang in the bath the night he put up interest rates to 15% !

15.4% interest rates went up to.

Just wait for a Corbyn victory

 

[Bulldog]

15.4% interest rates went up to.

Just wait for a Corbyn victory

Please just remind us all who the TORY chancellor was when interest rates reached 15.4%?

 

[jakarta]

I have several friends who have lived the life of Riley and could be screwed by this.

So who's fault is that exactly?

 

[Titanic]

So who's fault is that exactly?

The evil Tories, obviously.

 

[Berty23]

So who's fault is that exactly?

Their's 100%. The difficulty I have is that people like them have taken on more and more debt to create an illusion of a stronger economy. This won't be pretty.

 

[Blackadder]

Be very surprised if no rate rise given inflation going upwards.

A big shock to quite a few if they do as many think current interest rate is normal of which it is definitely not.

Some of us mortgage veterans remember Lamont sang in the bath the night he put up interest rates to 15% !

"Je ne regrette rien"