Inflation - when is this going to end?

[Johnny Mars Bar]

I'm not a economic expert, I'm just saying how the media will report what great news it is when interest rates fall after so many millions like myself was forced into fixed remortgages at 5/6% for years.

Shit timing isn’t it but whether rates go up, down or sideways it makes no difference to you now.

For most people lower rates are a good thing.

 

[Rory Bluelow]

Inflation is incredibly destructive especially when it had been at practically zero for well over a decade. How can anyone make long term decisions in business or private life when you can wiped out by interest rate hikes. I’ve lived through various bouts of very high inflation (c25% in the 70s etc) but the situation now with ridiculous housing costs is a killer. My first couple of houses cost around 3x my income, I‘d say these days equivalent numbers would be not far off 10x. It’s crazy.
I’m an FOC now with a generous pension, no debts and good savings - which are now earning a decent amounts of interest - but my kids and practically all their friends are hugely suffering and it seems so unfair. Okay, when we eventually croak they’ll do well but what a depressing prospect !

 

[Bluesince1979]

I’ve said for years EVs aren’t the answer to fighting global warming. All the batteries and chemicals and plastic shit that goes into making them can’t be good for the environment. And then you add in the fact that batteries degrade rapidly after a few years, it makes no sense to me whatsoever.

10 year old EVs are practically worthless for that reason.

Surely it’s got to be better for the environment to invest in better public transport and for people who do need a car, to keep older ones on the road for longer so we don’t need to keep churning out new ones.

No ones making money out of that though are they ;)

 

[metalblue]

No he means he either locked in a new fixed deal for a few years or would be stuck on whatever the standard rate was for his provider. So inflation might come down but there are plenty of people who had no choice but to take higher fixed rates as that was all that was available at the time.

Or go on the variable rate if you thought the interest rate had peaked and long term deals were overpriced. He paid what appears to be peak and locked in for however long, he’s not really underwater with the trade currently, if it’s a relatively short fix period (couple of years) it won’t cost him much compared to having dropped to the variable, maybe a 100bps by time he can re-fix.

If he locked in for longer when rates were the same then he’s fucked himself up. If a mortgage advisor suggested it I’d be strongly questioning that advice.

 

[metalblue]

Inflation is incredibly destructive especially when it had been at practically zero for well over a decade. How can anyone make long term decisions in business or private life when you can wiped out by interest rate hikes. I’ve lived through various bouts of very high inflation (c25% in the 70s etc) but the situation now with ridiculous housing costs is a killer. My first couple of houses cost around 3x my income, I‘d say these days equivalent numbers would be not far off 10x. It’s crazy.
I’m an FOC now with a generous pension, no debts and good savings - which are now earning a decent amounts of interest - but my kids and practically all their friends are hugely suffering and it seems so unfair. Okay, when we eventually croak they’ll do well but what a depressing prospect !

Inflation isn’t destructive in itself. It’s a necessity. Governments love it because it erodes debt, they need to make the market believe it’s lower than it is so interest rates sit under it. High inflation however is, particularly when it’s a shock to the norm.

Agree on house prices, once an average wage would buy and average house. Now you need to be in the top wage earners to buy an average house. It’s a very distorted situation.

 

[Johnny Mars Bar]

No ones making money out of that though are they ;)

Nail on the head.

 

[Bill Walker]

I just did something really weird.
I sold my car.

What's weird about it?
I've had it for 4 years and 3 months. I bought it brand new, I just sold it for exactly the same same price I paid for it... twenty eight thousand dollars.
14k quid.

 

[city2]

So inflation is down can anyone tell me honestly is this the case or am I imagining it.

 

[Dicko69]

I just did something really weird.
I sold my car.

What's weird about it?
I've had it for 4 years and 3 months. I bought it brand new, I just sold it for exactly the same same price I paid for it... twenty eight thousand dollars.
14k quid.

A women I work with told me today she's getting a new car and has sold the old one which she'd owned for 10 years to webuyanycar.com for £400 less than what she paid for it

 

[Tuearts right boot]

I just did something really weird.
I sold my car.

What's weird about it?
I've had it for 4 years and 3 months. I bought it brand new, I just sold it for exactly the same same price I paid for it... twenty eight thousand dollars.
14k quid.

Now that's what you call cheap motoring, well done.
Just out of curiosity, did you replace it with a similar new car and.....how much.