Pound in freefall against dollar

[Deleted User]

Went on hols to the USA last Autumn when the rate was around $2 so not too happy thats its down to $1.75 now (since I'm going again in a few weeks). I guess its been worse in the past.

So whats the opinon? Is it likely to go down further, stabilise, or go back up?

WTF?_2

justpurchased wrote: »

I do mate, you fail to see that the recent jump in inflation as been down to energy prices. We will not see a full drop due to the weak pound but inflation will start to drop (especialy when the $ starts to slide again). You just don't like the fact that inflation will drop as your are hopeing for and intrest rate increase.

Actually - I personally benefit from weaker sterling since house prices in Sterling are falling and I still have most of my savings in a foreign currency which has appreciated against sterling almost 25% over the course of the last year.

But don't let that get in the way of you making clueless accusations. I don't extrapolate what might happen to help me in the short term as being good for the general public/economy or even myself in the longer term.

StevieJ

!!!!!!? wrote: »

The plummeting pound is negating a lot of the upside from oil falling back from the highs of recent months to simply "bloody expensive".

The truth is the 'plummeting' pound is down around 12% and 'upside' from oil is 25%, your descriptive qualities do not do full justice to the facts.

alared

StevieJ wrote: »

I thought house prices were falling, are you saying that WHEN the BOE drop interest rates by 2% that house prices will go straight back up again? It didn't seem to work that way when they dropped them to 5%.

As you well know the latest house price boom lasted for the past eight years with money getting cheaper to borrow throughout that period and every Tom,!!!!!! and Harry related to the housing market having their greedy little fingers in the pie ,talking up prices and causing a "bubble".
Cheap money caused the price rises.
In the late eighties when interest rates were 15% (yes,fifteen %),a £90k house wasn`t inflated to £220k

WTF?_2

StevieJ wrote: »

The truth is the 'plummeting' pound is down around 12% and 'upside' from oil is 25%, your descriptive qualities do not do full justice to the facts.

And if the pound hadn't fallen by 12% we'd be even better off in inflation terms.

It's like talking to a brick wall, honestly :rolleyes:

justpurchased

!!!!!!? wrote: »

Actually - I personally benefit from weaker sterling since house prices in Sterling are falling and I still have most of my savings in a foreign currency which has appreciated against sterling almost 25% over the course of the last year.

But don't let that get in the way of you making clueless accusations.

I so hope you lose the lot! you are as bad as the horrible greedy BTL'ers you go on about.
Come to think of it if you have your money in foreign currency why dont you emigrate, lots of cheap housing abroad.

alared

justpurchased wrote: »

Belive it or not the intrest rate is not just about mortgages!
The BOE are more responsible to business than home owners. I think your view is based about your own personal circumstances (you want a cheap house) and not about the economy whatsoever.

The BoE`s main and only mandate is to control inflation and keep it at 2%.

I don`t want a cheap house for myself because I already have onE (bought 20 years ago)

I DO want a cheap house for all the first time buyers and young people who are struggling to "get on the ladder".

During the last eight years property boom,people were buying houses and flats,not to LIVE in,but to make money from them.
nOW IT`S PAY BACK TIME.

StevieJ

[quote=alared
In the late eighties when interest rates were 15% (yes,fifteen %),a £90k house wasn`t inflated to £220k[/quote]

Not sure what the point is here, I thought the Govt gave tax relief on mortgages (inflationary) at the time and house prices did rocket.

justpurchased

!!!!!!? wrote: »

And if the pound hadn't fallen by 12% we'd be even better off in inflation terms.

It's like talking to a brick wall, honestly :rolleyes:

But if the $ was not stronger oil would have not come down so much.

You just make arguments to suit your means and are in no way related to the real world.
If you were the financial buff you make yourself out to be you would of purchased a house 8 years ago and sold last year, counting your money like a james bond villan!
But no you would rarther moan about your savings a spread inflation propogander.

epz_2

justpurchased wrote: »

?
Thus getting rid of every business also. Has no one ever realised that we are now getting to nearer to more historical exchange rates with the $..
I know you may want to watch house prices drop but it would nice to have a country left at the end!

the option is either take decisive action now to accelerate the market correction or a longer drawn out one and incur debt and inflation.

it may surprise people but not every industry in this country is dependant upon the housing market, I would bet industry would prefer a slightly higher rate for 6-12 months followed by a lower one vs the current rate and eventually being forced to raise it due to wage inflation.