Double-dip!

[gordondaviesmoustache]

The thing is with this recession is that most people are not really feeling the pinch, infact many people have never had it so good. As a friend recently exclaimed to me when speaking on this subject "people in Weaste are sniffing cocaine" - Ok, maybe thats not the most scientific way of measuring things but it does make you think.....

So it's harder to get money from the banks so if you are looking to set up a business or perhaps remortgage/obtain a mortgage, and I believe you have not had a pay rise and there have been cuts in your stonking pensions if you work in the public sector (boo hoo!).

However the real reason why most of us have not had any makor effects is that the interest rates have remained at an all time low meaning that we have not suffered huge increase in our mortgage repayments like people suffered in the 80's. If that was to happen then I think we'd all really start feeling the pinch.

I think you're right about the low interest rates and this has cushioned us from some of the effects. I don't think this is going to last for much longer, however and believe that we're in for a rude awakening very shortly, the Euro , I'm certain, will collapse and your fears may well become reality.
Have a nice day.

Interest rates are the only thing between the current state of affairs and financial oblivion in this country. Even if the Euro collapses why would the BoE put them up? They have already proved that they are happy to ignore the inflation figures in order to follow a strategy of low interest rates at all costs, why would the collapse of the Euro signal any shift in policy?

 

[Ancient Citizen]

Mervyn King said recently that there was scope for the interest rates to remain unchanged for a good while yet. Thank fuck. I think a big reason is that the South East of England mortgaged themselves up to the tits when things were good, and if the rates went up they would all be fucked. As we know the country revolves around what happens in dat London

Well, I wouldn't bet my last tenner on a Mervyn King prediction and 'a good while' can be interpreted as anything if and when, (when the more likely scenario IMO) we get a repeat of the 80's interest rates which went up to around 16%. On a more cheerful note, if you're as rich as fuck, any money you have will start to earn serious amounts. 10%, up to 12% was regularly offered back then, so immediately start saving/embezzling/robbing would be my advice.

 

[BoyBlue_1985]

Doomed we are all doomed

Or are we???

I notice you jump all over stuff like this.

Lots of people are fucked fella, well and truly fucked.

Just wait till the Euro finally goes pop and the shit will well and truly hit the fan.

I will of course eagerly await your usual response ;-)

You jump on me but as usual its the same doom and gloom merchants all over this thread. I generally stay out of these threads now as its the same bollocks peddled at a different angle.


If the euro goes pop the whole world will hit the fan but i very much doubt it will Fuhrer Merkel will make sure that Europe does what she wants

 

[el blue]

It's not the fall that hurts, it's the landing.

 

[city diehard]

We are in a depression; because "things are down" not just going down.

-- Wed Jul 25, 2012 11:45 am --

The thing is with this recession is that most people are not really feeling the pinch, infact many people have never had it so good. As a friend recently exclaimed to me when speaking on this subject "people in Weaste are sniffing cocaine" - Ok, maybe thats not the most scientific way of measuring things but it does make you think.....

So it's harder to get money from the banks so if you are looking to set up a business or perhaps remortgage/obtain a mortgage, and I believe you have not had a pay rise and there have been cuts in your stonking pensions if you work in the public sector (boo hoo!).

However the real reason why most of us have not had any makor effects is that the interest rates have remained at an all time low meaning that we have not suffered huge increase in our mortgage repayments like people suffered in the 80's. If that was to happen then I think we'd all really start feeling the pinch.

Any relation to Lord Young? What a stupid comment.<br /><br />-- Wed Jul 25, 2012 11:46 am --<br /><br />

I'd rather a decline of 0.7% of making something than 0.3% of making fuck all.

The Bank of England has pumped £375bn into the UK economy over the last three years. How do you think things would be if we didnt have that option?

More importantly, I wonder where that £375bn has gone?

Banks are still hoarding it when the purpose was to lend it out, due to the severe lack of confidence.

 

[city diehard]

Why do people think interest rates are going to go up? I can't see them going anywhere for a while. Surely if they did half the country would default?

There not going up for a long time it would be suicidal, Andrew 'Death' Sentence on the MPC advocates it but growth is the priority and since CPI fell recently. When the ECB put rates up by quarter of a percent it damaged many of the periphery countries who were already hurting. They are staying at 0.5% for a long time to cushion the draconian fiscal policies implemented by this inept government.

 

[brooklandsblue2.0]

We are in a depression; because "things are down" not just going down.

-- Wed Jul 25, 2012 11:45 am --

The thing is with this recession is that most people are not really feeling the pinch, infact many people have never had it so good. As a friend recently exclaimed to me when speaking on this subject "people in Weaste are sniffing cocaine" - Ok, maybe thats not the most scientific way of measuring things but it does make you think.....

So it's harder to get money from the banks so if you are looking to set up a business or perhaps remortgage/obtain a mortgage, and I believe you have not had a pay rise and there have been cuts in your stonking pensions if you work in the public sector (boo hoo!).

However the real reason why most of us have not had any makor effects is that the interest rates have remained at an all time low meaning that we have not suffered huge increase in our mortgage repayments like people suffered in the 80's. If that was to happen then I think we'd all really start feeling the pinch.

Any relation to Lord Young? What a stupid comment.

-- Wed Jul 25, 2012 11:46 am --

The Bank of England has pumped £375bn into the UK economy over the last three years. How do you think things would be if we didnt have that option?

More importantly, I wonder where that £375bn has gone?

Banks are still hoarding it when the purpose was to lend it out, due to the severe lack of confidence.

I meant it 100%, certainly in the circles I mix in (and we are far from upper class toffs) just normal hardworking lads who probably have a bit more ambition than most if anything. Look at the facts, if you have a mortgage, are not a public sector worker and have employment I almost guarantee (providing your circumstances have not changed-kids etc) others will be in the same boat. Jump in the waters lovely.

 

[brand blue heavies]

Interest rates will only go up if inflation gets out of hand. Its currently down to its lowest level for years so i wouldn`t expect a rate rise til at least 2015.

I do agree that maybe some of the QE money is being held by the banks but is this a really bad move? Some financial institutions are already preparing for certain currencies to bail out of the euro and if we can limit the exposure as much as possible then a program of steady financial flow from banks to business is the wisest thing to do.

The ECB cant afford to bail out all the countries to the extent that they need so something is gonna give. Personally i`d chuck Greece out with a supporting package to aid the transition back to the Drachma. Then i would take control of the spending from Italy,Spain,Portugal etc limiting the amount of money they are throwing down the drain. This would alas mean a painful round of austerity measures which would affect the public sector massively but its the only way.

 

[Josh Blue]

sunnier economic times ahead! trust me, I'm a doctor..

 

[city diehard]

We are in a depression; because "things are down" not just going down.

-- Wed Jul 25, 2012 11:45 am --

The thing is with this recession is that most people are not really feeling the pinch, infact many people have never had it so good. As a friend recently exclaimed to me when speaking on this subject "people in Weaste are sniffing cocaine" - Ok, maybe thats not the most scientific way of measuring things but it does make you think.....

So it's harder to get money from the banks so if you are looking to set up a business or perhaps remortgage/obtain a mortgage, and I believe you have not had a pay rise and there have been cuts in your stonking pensions if you work in the public sector (boo hoo!).

However the real reason why most of us have not had any makor effects is that the interest rates have remained at an all time low meaning that we have not suffered huge increase in our mortgage repayments like people suffered in the 80's. If that was to happen then I think we'd all really start feeling the pinch.

Any relation to Lord Young? What a stupid comment.

-- Wed Jul 25, 2012 11:46 am --

More importantly, I wonder where that £375bn has gone?

Banks are still hoarding it when the purpose was to lend it out, due to the severe lack of confidence.

I meant it 100%, certainly in the circles I mix in (and we are far from upper class toffs) just normal hardworking lads who probably have a bit more ambition than most if anything. Look at the facts, if you have a mortgage, are not a public sector worker and have employment I almost guarantee (providing your circumstances have not changed-kids etc) others will be in the same boat. Jump in the waters lovely.

I'm sure the 1 million youth unemployed would have something to say. That figure will have serious economic consequences if we don't act sooner, they will suffer from hysteresis and then a lost generation on our hands, if the govt don't rethink their zealous austerity measures.