UK At 80% Risk Of Rating Downgrade On Current Debt Plan:PIMCO

stueyhants

So if Hamish is right and the governement cuts hard after the election enough to satisfy the markets, causing job losses (not sure how you can save 6% of GDP without cutting jobs) which can't be all that good for the housing market.

Or

They don't cut and the markets take this negatively and IRs creep up causing more mortgage arrears etc.

Difficult choice, dammed if you do and dammed if you don't.

Graham_Devon

stueyhants wrote: »

So if Hamish is right and the governement cuts hard after the election enough to satisfy the markets, causing job losses (not sure how you can save 6% of GDP without cutting jobs) which can't be all that good for the housing market.

Or

They don't cut and the markets take this negatively and IRs creep up causing more mortgage arrears etc.

Difficult choice, dammed if you do and dammed if you don't.

50 year mortgages is the answer

And borrowing your deposit of course ...

stueyhants

Graham_Devon wrote: »

50 year mortgages is the answer

Perhaps we need to start being polygamists, that way we can also have three or more incomes supprting the mortgage

purch

He also said the end of the Bank of England's bond-buying program will have a significant impact on U.K. gilt markets and borrowing costs

The guy is a bloody genius :eek:

The start of it did, so it would be a huge !!!!ing surprise if the end of it didn't too !!!!

So if Hamish is right

There is no IF with the mad Scotsman.

Doubt what he say's and he will bombard you with 55 new threads in the next hour, until you give up and don't log on for a week.

Emy1501

stueyhants wrote: »

So if Hamish is right and the governement cuts hard after the election enough to satisfy the markets, causing job losses (not sure how you can save 6% of GDP without cutting jobs) which can't be all that good for the housing market.

Or

They don't cut and the markets take this negatively and IRs creep up causing more mortgage arrears etc.

Difficult choice, dammed if you do and dammed if you don't.

As I tried to explain to Hamish the other day when he said that DC and the Tories are committed to pay freezes in the public sector and not a massive cull. The markets will decide what the government has to do after the election. The government will not win either way unless QE is shown to have worked and the the economy is showing real growth.

I was watching CNBC today they were talking about hoe the UK only pays back debt at 2% above inflation whilst Latin America, India etc pays back at 4-6% even though they countries are in better shape. They were saying if the UK continues as it is the lenders will start to think hang on what are doing.

stueyhants

Does anyone on here really think a bit of tinkering and a pay freeze here and there is going to cut it ?

Emy1501

stueyhants wrote: »

Does anyone on here really think a bit of tinkering and a pay freeze here and there is going to cut it ?

No but when does being honest win votes? Thats why the markets are happy to wait till after the elections.

chucky

stueyhants wrote: »

Does anyone on here really think a bit of tinkering and a pay freeze here and there is going to cut it ?

Nope....... it won't put us into recession, it will just eat into UK growth

btw - this is a smart move by Pimco

stueyhants

chucky wrote: »

Nope....... it won't put us into recession, it will just eat into UK growth

btw - this is a smart move by Pimco

Are you implying they are shorting Gilts ?

mbga9pgf

stueyhants wrote: »

So if Hamish is right and the governement cuts hard after the election enough to satisfy the markets, causing job losses (not sure how you can save 6% of GDP without cutting jobs) which can't be all that good for the housing market.

Or

They don't cut and the markets take this negatively and IRs creep up causing more mortgage arrears etc.

Difficult choice, dammed if you do and dammed if you don't.

They need to cut or inflate away 12-13% to halve the deficit. Tax raises will do some of it, but do not uderestimate the difficulty we have ahead of us.... Once it is halved, they will need to look to reduce it further over the next decade.

Fingers crossed we will have a surplus... by 2020.