School me quickly in Interest Rates?
Discussion
paddyhasneeds said:
Girl at work voted tory and got "told off" by her family cuz of Thatcher blah blah..
Apparently interest rates hit 15% and CMD may do that.
What's my response to that as I was a relative nipper at the time?
(yes she is, and no I don't).
i dont think that will happen this time - mostly because im praying for itApparently interest rates hit 15% and CMD may do that.
What's my response to that as I was a relative nipper at the time?
(yes she is, and no I don't).
paddyhasneeds said:
Girl at work voted tory and got "told off" by her family cuz of Thatcher blah blah..
Apparently interest rates hit 15% and CMD may do that.
What's my response to that as I was a relative nipper at the time?
(yes she is, and no I don't).
The fun thing is that a 15% rate would give everyone the cheap houses that they've been demanding. Apparently interest rates hit 15% and CMD may do that.
What's my response to that as I was a relative nipper at the time?
(yes she is, and no I don't).
Typically, raising of interest rates is a tool to curb a runaway economy. We are not there yet. If we do get rampant inflation it will be due to Brown's fiscal policies of the last 2 years where he has been both borrowing and printing money to fill the enourmous gaps created by his activity for the 10 yrs prior.
We should be very wary of people who rant on about Thatcher. They are not normal. It was 20 yrs ago, the world has moved on and yet these people can't. They are brainwashed simpletons incapable of independent thought and reasoning.
t when I hear the fifteen percent thing brought up. I remember it well, why don't they?DonkeyApple said:
We should be very wary of people who rant on about Thatcher. They are not normal. It was 20 yrs ago, the world has moved on and yet these people can't. They are brainwashed simpletons incapable of independent thought and reasoning.
AKA, Northerners. Sorry, i'm high as a kite, don't spray car parts in enclosed garages kids.paddyhasneeds said:
As a bit of self-interest, as a saver with no mortgage, if they did rise presumable savings rates also rise not just borrowing rates?
You'd hope, right?If your interest rate, after tax, is higher than inflation, (choose the measurement of inflation carefully,) then you're winning.
If not, inflation is eroding your savings, so you might as well spend it. (I'll have a Guinness.)
Dave_ST220 said:
Sorry, i'm high as a kite, don't spray car parts in enclosed garages kids.
Similarly, don't spray with thinners in an enclosed garage and then come out and light a fag, the thinners vapour lingers in your hair for quite a while... 
Edited by Bee_Jay on Friday 7th May 16:06
paddyhasneeds said:
Girl at work voted tory and got "told off" by her family cuz of Thatcher blah blah..
Apparently interest rates hit 15% and CMD may do that.
What's my response to that as I was a relative nipper at the time?
(yes she is, and no I don't).
If you look here:Apparently interest rates hit 15% and CMD may do that.
What's my response to that as I was a relative nipper at the time?
(yes she is, and no I don't).
http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp
and here:
http://en.wikipedia.org/wiki/List_of_British_gover...
You can quickly see that both Labour and Conservatives have had periods of high interest. The thing that these periods have in common is high inflation. High inflation is caused by government mismanagement of the economy. In the last 50 years, this has always been a Labour speciality.
Interest rates are going to go up in the next couple of years, and it doesn't matter which party is in power. And yes, they could easily get to 12%.
Don
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NoelWatson said:
DonkeyApple said:
The fun thing is that a 15% rate would give everyone the cheap houses that they've been demanding.
Goodit wont happen, banks couldnt afford the mark down on their books - not with the asset ratio to lending criteria?
Edited by JacksHereR on Friday 7th May 16:25
tobster said:
can't really see BOE panicking and pushing rates up.
Depends whether they need to. If you believe the hype, deflation is likely to even things out. Ignoring their biased basket, real world inflation is way up. If the markets hit the pound, it will accellerate even more.
It's like saying to a driver, it's ok, you don't need to use the brakes anymore. This is all well and good if you are on the flat and there are no corners. This is not the case at the moment, as you too are aware.
Dave_ST220 said:
Noel thinks the utopia of cheap housing is just around the corner.
Well I certainly agree that as interest rates trend back to historic average levels we stand a very good chance of an over reaction leading to a spike in rates beyond the new level and this, in turn, is likely to trigger an increase in supply of housing, which in turn is most likely going to precipitate a fall.However, many of those who think they'll be able to buy these lower priced properties are very mistaken. As per allways, the properties will be bought by young people with sensible jobs and older people with lots of cash. Which, rather strangely is the same as allways.
A sudden drop in property values will just feed more properties into the hands of landlords and the cash rich etc.
What genuine buyers who can't get on the ladder need is a stable employment market combines with, at best, no house price inflation. One of the real problems of the last decade has been that the longer someone has saved for a deposit the larger that deposit has needed to be.
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