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Rate Cut Ramifications - Paul Lewis of Moneybox on BBC News
Cannon_Fodder
Posts: 3,980 Forumite
see http://news.bbc.co.uk/1/hi/business/7818368.stm
paraphrasing;
Savers lose, majority of mortgage-holders don't gain as on Fixed, those on trackers gain by being subsidised by the former...
No credit around, so interest rates reductions are going to have no effect - "it hasn't worked". "There isn't enough credit there, for whoever wants to borrow"
Q - "Massive borrowers are quids in, the prudent are being penalised?"
A - "Yes"
The rather telling part?
"to those who are benefitting from rate cuts, firstly enjoy it, but secondly DON'T SPEND IT, USE IT TO PAY DOWN YOUR DEBT, BECAUSE ONE DAY RATES WILL GO BACK UP AGAIN, AND THE LESS DEBT YOU HAVE THE STRONGER FINANCIAL POSITION YOU ARE IN, IN WHAT FRANKLY WILL BE A VERY DIFFICULT YEAR"...
Quantitative Easing - after explaining how the money might be put into the economy he talks about the inflation risks, "a dangerous policy", "with all that money around you are in difficulty".
I bet Gordon Brown is hating the discouragement of spending, but if this "save, save, save" approach gains momentum, is the recession is going to be deeper than if the Govt hadn't wasted 6 months trying to convince the populace to keep spending merrily...?
paraphrasing;
Savers lose, majority of mortgage-holders don't gain as on Fixed, those on trackers gain by being subsidised by the former...
No credit around, so interest rates reductions are going to have no effect - "it hasn't worked". "There isn't enough credit there, for whoever wants to borrow"
Q - "Massive borrowers are quids in, the prudent are being penalised?"
A - "Yes"
The rather telling part?
"to those who are benefitting from rate cuts, firstly enjoy it, but secondly DON'T SPEND IT, USE IT TO PAY DOWN YOUR DEBT, BECAUSE ONE DAY RATES WILL GO BACK UP AGAIN, AND THE LESS DEBT YOU HAVE THE STRONGER FINANCIAL POSITION YOU ARE IN, IN WHAT FRANKLY WILL BE A VERY DIFFICULT YEAR"...
Quantitative Easing - after explaining how the money might be put into the economy he talks about the inflation risks, "a dangerous policy", "with all that money around you are in difficulty".
I bet Gordon Brown is hating the discouragement of spending, but if this "save, save, save" approach gains momentum, is the recession is going to be deeper than if the Govt hadn't wasted 6 months trying to convince the populace to keep spending merrily...?
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Comments
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Cannon_Fodder wrote: »Savers lose, majority of mortgage-holders don't gain as on Fixed, those on trackers gain by being subsidised by the former...
Scr&w all those lot I'm an extra £125+ a month up :beer: :money:
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Scr&w all those lot I'm an extra £125+ a month up :beer: :money:
hmmmm - that sounds an awful lot like the HPI folks who were going 'Screw you FTBs, my house is up 1.5k this month alone!'.
That didn't turn out so well ....--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
hmmmm - that sounds an awful lot like the HPI folks who were going "Screw you FTBs, my house is up 1.5k this month alone!".
That didn't turn out so well ....
Actually i don't think that at all and i for one never said or thought "screw you ftb'ers, my house is up 1.5k this month alone".
I just think his mortgaged has reduced by £125 a month, so good luck to him.0 -
it has for the FTB's now saying " Screw you, i spent the last 4 years saving a deposit, now i'm going to offer £40K less than you want/need!"0
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It's every man for himself .... the HMS UK is sinking and there are only 4 lifejackets, and one has my name on it.
I'm going to auction the other 3 on EBAY (TO THE HIGHEST BIDDER IN GOLD), and retire to the Bahama's
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it has for the FTB's now saying " Screw you, i spent the last 4 years saving a deposit, now i'm going to offer £40K less than you want/need!"
Good luck hopefully you will find a distressed seller who is probably around about £300 a month better off at the mo due to ludicrous interest rates.0 -
hmmmm - that sounds an awful lot like the HPI folks who were going "Screw you FTBs, my house is up 1.5k this month alone!".
That didn't turn out so well ....
hmmmm - that sounds an awful lot like the HPC folks who were going "Screw you owners, the house I want to buy is down 1.5k this month alone!".
That didn't turn out so well ....US housing: it's not a bubble
Moneyweek, December 20050 -
hmmmm - that sounds an awful lot like the HPI folks who were going "Screw you FTBs, my house is up 1.5k this month alone!".
That didn't turn out so well ....
!!!!!!, now who actually said that? Iwouldn't be quite so ludicrous if you hadn't used the quotation marks.
"Screw you FTBs, my house is up 1.5k this month alone!"'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
kennyboy66 wrote: »hmmmm - that sounds an awful lot like the HPC folks who were going "Screw you owners, the house I want to buy is down 1.5k this month alone!".
That didn't turn out so well ....
Pretty much all the HPC folks were warning anyone who would listen not to buy and urging those in a position to do so, to think about selling when the going was good.
For people who listened to that advice, it turned out rather well unlike those who chose to go with the HPI forever brigade.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
!!!!!!, now who actually said that? Iwouldn't be quite so ludicrous if you hadn't used the quotation marks.
"Screw you FTBs, my house is up 1.5k this month alone!"
Good point, I'll go back and change them to apostrophes for those too dim to see I'm contrasting with what the poster said.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0
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