Even lower base rates.

[crankedup]

toppstuff said:

crankedup said:

Those fools that took on huge mortgages prior to the financial crash with mortgage multiples of epic proportions are now being subsidised by cash saver such as me. I am justified in being hacked off for having to bailout these idiots, for that is what it amounts to.

It is a consequence of the economic climate but not the main reason for it.

You should be blaming the last government for a fiscal policy specifically designed and intended to pump out cheap money to the public to make them feel richer than they were, supported by a systematic and planned strategy to loosen financial regulation and get the banks to send out this money to anyone and everyone who wanted it.

The banks are just the instruments of delivering credit. Government policy creates debt through the central banking system while the commercial banks distribute it. This is how it works globally. The only country in the west I can think of that did'nt get so involved in this nonsense was Canada, but thats another story.

Don't blame everything on the distributor. Don't forget the manufacturer.

Ed Balls would have the door slammed in his face if he turned up at my house.

True enough and I go on later (as above post) with where a lot of the 'mortgage market' problems started. We have had ludicrous political interference leading up to where we all are right now. I blame both Labour and Tory Governments, as you may have read.
But I still will feel hacked off with those that jumped into those unaffordable mortgages, as I feel sure many others do that are in my personal situation.

[crankedup]

Getragdogleg said:

crankedup said:

It sounds reasonable but bypasses people such as me, moderate cash investment for a rainy day and readily accessible. Those with pensions adversely affected with low returns, the senior citizen Joe Public who has saved diligently throughout a life time of work now finding that subsidising those that have managed to over burden themselves with a hefty mortgage and reliant on the current low interest rates.

You only "saved diligently" because your cost of living did not exceed your income, in fact your cost of living was less than your income. Be thankful.

How much was of your lovely situation was because the house prices were lower and the bills lower when you hopped on the ladder ?


I am not having a dig by the way, I am just making sure that you know that luck is as much to do with being financially secure as any other variable you can think of.

Sure, I would accept a degree of luck always enters in life, its not always good luck though. And there is an old saying, 'you make your own luck'. My life hasn't all been rosy, far from it, if only.

I am not 'thankful'to anyone regarding my work life or financial judgements. In this world you have to make your own way, I couldn't even get the Council to pump out flood waters threatening my home last week, but I had to give it a try! I could have sat back and done next to nothing, be a lazy git and have the Government support me and my family. Not for me that life, I actually worked for our living and even when my business went pop, we got up, dusted ourselves down and started over. Nobody has the right to suggest that we had it easy, it was tough, but in different ways to 2008 onwards.
As for your question about equity in our home, its mortgage free, as it should be at my age! I will take your mortgage if you take my relative old age.;)

[einsign]

WeirdNeville said:

"We have this huge machine, the economy. No one knows how it is built, and no-one knows what is linked to what inside, or even if they are linked at all. And on the front panel of this machine is a big wheel marked Interest Rates +/-". Cranking that wheel is the only mechanism we have to control that machine. And we're not even sure if it does anything"

Can I please opt out?

[Crafty_]

crankedup, do you really believe we have low interest rates solely to maintain house prices, thus causing you to be "paying" for the mortgage of others ?

Obviously for someone such as yourself low interest rates are not good news, but I think your point of view is somewhat naive. There is a sense of "entitlement" in your posts, almost "I'm retired so I should earn good interest on my savings".
Nothing is guaranteed in the financial world, nothing ever has been.

[IroningMan]

The oft-touted 'paradox of thrift' suggests that those with cash savings are selfish - that cash would be better used, not parked.

Putting rates up would, I suggest, do rather more harm to UK plc's export prospects than it would do good to the interests of the country's last generation of defined benefits pensioners.

[turbobloke]

IroningMan said:

The oft-touted 'paradox of thrift' suggests that those with cash savings are selfish - that cash would be better used, not parked.

Surely it would be used if banks were lending more to UK SMEs, though mattress savings seem to fit the paradox more closely.

[Ozzie Osmond]

IroningMan said:

The oft-touted 'paradox of thrift' suggests that those with cash savings are selfish - that cash would be better used, not parked.

I think that's an extract from the gospel according to Ed Balls. The three golden rules in Ed's Gospel are,

• If in doubt, spend more.
• If you have to borrow more to keep on spending, borrow more.
• If you've borrowed your way into trouble, the answer is to borrow more until you are out of trouble.

[crankedup]

Crafty_ said:

crankedup, do you really believe we have low interest rates solely to maintain house prices, thus causing you to be "paying" for the mortgage of others ?

Obviously for someone such as yourself low interest rates are not good news, but I think your point of view is somewhat naive. There is a sense of "entitlement" in your posts, almost "I'm retired so I should earn good interest on my savings".
Nothing is guaranteed in the financial world, nothing ever has been.

Two ways that my post could be interpreted, you choose the 'entitlement' angle. From my perspective it is a matter of some entitlement I suppose, but that is to black and white. I would say a 'reasonable entitlement' is not to be sneered at. After all my money, and other savers of course, is being loaned to people who want to take on a loan, so ask yourself this question : if you gave somebody a cash loan would you be content to receive a less than inflation return?
As for naivety, a little harsh, you need to read my other posts in the thread to form a opinion before using such comment. I always have covered the uncertainty of investment by risk spreading as is perfectly normal and basic.

[hornet]

On the subject of capital spending and infrastructure, would there be any merit in El Gov offering a dedicated "Infrastructure Bond" to private investors, say through an ISA or somesuch? From the Government point of view, the answer is probably "no", as they'd have to offer a reasonable rate, which would doubtless be well above normal gilts, but would there be other less tangible benefits to be had through directly engaging normal people in the improvement of our infrastructure?

[Terminator X]

crankedup said:

Terminator X said:

Worst I'm loaded thread ever. If you have pots of spare cash invest it in something else rather than rely on BOE interest rate.

TX.

Worst 'Im envious post' ever. You must know, as all PH'ers do, that you spread your risk in investment. We have worked hard all our lives with many sacrifices made, for example we did not over indulge in foreign holidays or overly flash cars. Call us old fashioned if you like, we were and still are prudent trying to look after what we have worked for.

Lol you've got me you Sir must be a terminal fkwit though if you continue to "spread your risk in investment" via avenues that include the BOE rate!

TX.

[crankedup]

Terminator X said:

crankedup said:

Terminator X said:

Worst I'm loaded thread ever. If you have pots of spare cash invest it in something else rather than rely on BOE interest rate.

TX.

Worst 'Im envious post' ever. You must know, as all PH'ers do, that you spread your risk in investment. We have worked hard all our lives with many sacrifices made, for example we did not over indulge in foreign holidays or overly flash cars. Call us old fashioned if you like, we were and still are prudent trying to look after what we have worked for.

Lol you've got me you Sir must be a terminal fkwit though if you continue to "spread your risk in investment" via avenues that include the BOE rate!

TX.

Not half as much as the dimwitted responses you happily publish, you display a perpetual and chronic problem continuing to be deliberately obtuse in your replies. You carry on working and I will carry on enjoying my early retirement, and you call me a f**kwit. Envy brings out the worst in people, as you clearly demonstrate.