Everyone I know is sinking under a decade of DEBT..

bendix

dori2o wrote: »

TBH I don't really care what the debt we have does to us (only have mortgage). If the interest rates rise rapidly and my salary doesn't rise at a similar rate, or if my employer gets rid of me due to capability (more likely than the intrest rates), then the house will have to go and I'll claim benefits and live in rented accommodation.

That's the spirit. That's the kind of attitude that made Britain Great

smeagold

RenovationMan wrote: »

Is this aimed at me? I have to point out that I wasnt the one who asked you what you would do if gold crashed.

However, to answer the part that was aimed at me. If my house falls in value then I still have the lovely home that I wanted for me and the family to grow old in. We will still have a lovely view of the lake and woods through our mullioned windows and I will still be able to while away those cold and dark winters nights in front of the woodburning stove. I will still have nice neighbours and a nice school for my kids to go to and I will still have the lovely country walks just outside my door. All I will have 'lost' was the notional value of my house that is immaterial anyway because I dont plan to sell for 20 or more years and surely not even the most bearish on here think we wil still be in this falling market over that timespan?

Out of interest, How much gold did you buy and at what price and when?

I keep asking you gold and silver bugs this, but you guys never answer. I dunno why.

Thats fine then so long as you can afford, or have budgetted for interest rates at 5% in a year or 2 and double digit ones in 5 years. people falsely assume that governments are in control of IRs they're not. the market and economic factors do that. The BoE will be forced to raise rates eventually(i'm sure you've heard that phrase before) even if they don't want to or else the markets will lose complete confidence in the Bank and thats game over. Apologies also.

RenovationMan

smeagold wrote: »

Thats fine then so long as you can afford, or have budgetted for interest rates at 5% in a year or 2 and double digit ones in 5 years. people falsely assume that governments are in control of IRs they're not. the market and economic factors do that. The BoE will be forced to raise rates eventually(i'm sure you've heard that phrase before) even if they don't want to or else the markets will lose complete confidence in the Bank and thats game over. Apologies also.

That's fine, two years is all I need, though I think we'll have low rates for longer than that. Keep an eye on my blog on the mortgage free wannabe board for my progresss.

I'm probably a little older than you, so I do remember double digit interest rates. However, I'm not so afraid of life that I wont take advantage of the current historically low interest rates. This bounty will never be seen again, so I am going to make merry while the sun shines, yet still be prepared for the rain.