How long at 0.5%

scousethife

Dithering_Dad wrote: »

I'm hoping that rates will stay the same until April 2010 when my current deal runs out and I can arrange a fixed rate.

I hope they stay low indefinately to benefit everyone rather than just thinking of myself.

But, yer know, everyones different, some people are just selfish!

Dithering_Dad

scousethife wrote: »

I hope they stay low indefinately to benefit everyone rather than just thinking of myself.

But, yer know, everyones different, some people are just selfish!

Low rates just benefit a small minority of the population - those with debts such as mortgages. People who have savings, such as pensioners are struggling like mad because their savings are making nothing.

If you're going to have a dig at me, then at least do it in an intelligent way. Your comment just makes you look financially ignorant.

julieq

Dithering_Dad wrote: »

Low rates just benefit a small minority of the population - those with debts such as mortgages. People who have savings, such as pensioners are struggling like mad because their savings are making nothing.

If you're going to have a dig at me, then at least do it in an intelligent way. Your comment just makes you look financially ignorant.

Why should people with savings have the right to risk free income? I don't think that benefits anyone except the pathologically risk averse and lazy. It's perfectly right that people should take risks to make money, and that's perfectly possible in this financial climate. Investment banks are doing it, BTL investors are doing it.

DD, your first reaction when anyone disagrees with you is hectoring and bullying. You don't like it when people mock you, so why not engage in arguments instead of browbeating people? And perlease, keep your views on what board guides should do or say to yourself - if you don't like the board or how it's operates you can always go somewhere else.

I had to laugh at the comment last night that all I know about is roulette. That was a small part of quite a lot of detailed argument and commentary, but you've hooked into it for reasons that escape me as a sort of ad hominem to try to discredit the arguments. You're also misrepresenting my position. It doesn't take the judgement of a Cassandra to figure out that interest rates will rise from a historically low point, what I (and others) disagree with is that there is some natural long term settling point around 8%.

It's a complex situation, there are a mixture of inflationary and deflationary pressures, and there is also an unusual fragility around the economy. For starters, even with 0.5% increases every month it would take 15 months to get to 8%, and that would be a fairly severe shock. Personally I think deflationary pressures will tend to win for the next couple of years, that's a perfectly arguable position.

But if anything is financially ignorant, it's the idea that you have special powers and can see things others can't. Fixed rates essentially price in what is known or can be anticipated about long term interest rates, with a profit margin, they provide stability and predictibility essentially, not a winning formula, they offer a bet at poor odds, possible to win but not intrinsically a value proposition. The idea that you were the only person advising people to take fixed rates at a point where the rates were dropping is risible, it's an obvious protective move to eradicate the risk of a big hike over time on stretched finances. What takes a little more nous is recommending something that isn't blindingly obvious. That's the way you make money, ultimately, by being ahead of the game rather than trailing in its wake. And that in turn is I suspect why you don't make money, you just talk a lot as if you do. If you actually had cogent arguments you'd use them.

What would I do if I had a mortgage at the moment? I'm not sure. As was said by someone else, it's difficult to know precisely what will happen because this uncharted territory. I know that industry is having a very hard time, but appears to be trying to ride out the storm, we have yet to see really large scale redundancies. That's a new situation, and it won't last, if that tips there is a serious danger of a stock market collapse in my view. There are inflationary pressures from oil (for example) and the devaluation; there are deflationary pressures from other directions. It's anyone's guess what will happen next, but overheating in the UK seems the least likely of all options just at the moment. My view would be that the best strategy is to take advantage of the low rates and build up savings to ensure a remortgage is possible with a realistic LTV and keep an eye on things.

divadee

I have removed some of the posts on this thread and reffered them to the abuse team. They were off topic on this discussion and argumentative.

inspector_monkfish

divadee wrote: »

I have removed some of the posts on this thread and reffered them to the abuse team. They were off topic on this discussion and argumentative.

oh no they were'nt

oldMcDonald

inspector_monkfish wrote: »

oh no they were'nt

oh yes they were.

(Well, someone had to reply with this)

inspector_monkfish

oldMcDonald wrote: »

oh yes they were.

(Well, someone had to reply with this)

this could go on all day....

Monty Python Classic:
http://www.mindspring.com/~mfpatton/sketch.htm

tomterm8

I don't really buy the idea that the MPC is independant... the MPC is tasked by the government to set monetary policy to achieve it's aims. The government has the authority legally to change those aims, without recourse to parliament. So, at best it is semi autonomus.

It does have flexibility in terms of deciding over what time frame it achieves the aims, but the MPC is not the federal reserve, its independancy was always limited by statute.

mewbie_2

julieq wrote: »

The thing with roulette is to either bet on the red or black squares. Then the little ball goes round and stops, and if you are lucky, or a sound investor like what I am, you will win some money. In some fancy clubs they say "fait ner plein" which is a bit James Bondy, but where I go they normally say "stop betting" which amounts to the same thing. I once won a large sum of money.

Er thanks julieq.

soulsaver

julieq wrote: »

Good job the people offering long term low fixed rates can't see the same things you can DD. Better keep schtum while we all take them to the cleaners. :rotfl:

Link would be appreciated...