for those who want the base rate to rise

DervProf

tara747 wrote: »

Eh??? A borrower does not subsidise a saver. You want to borrow, you pay the going rate. Can't pay it? Then don't borrow. Taking on too much debt relative to your income? Then don't borrow. Self certing your income on the basis of unpredictable bonuses? Then... you deserve everything you get if it all comes crashing down.




Oh, that old chestnut - blame the Americans! I hear Gordon Brown talking. What about the UK govt, BOE and FSA who failed to regulate? They could have mitigated the impact of the US meltdown over here, they are each to blame in a massive way. As are the borrowers...

:T

Well said.

Easy to blame the Americans. Yes, it may have started in America, but weren't our banks (Northern Rock etc) dishing the dosh, derived from the "dodgy dealings" that were going on elsewhere ? Did the FSA, or the government not stop to question (as I did) where all this money was coming from ? The freely flowing credit seemed iffy to me, and I ain't no financial expert (actually it seems that I am, having managed to run my own finances quite successfully, even on a modest income).

It's called spending less than you earn. The government might want to try it sometime. I can also recommend it the general public - it really does aid restful sleep.

whatyadoinsucka

the only thing that graph is showing me is its risen 4 times and fallen 3 times, are we due a fall :0(

Generali

chucky wrote: »

so there only 5 year swaps being traded?

i'm sure Libor's are traded on different tenors...

If money goes into a five year swap it can't go somewhere else.

I'm quite surprised that refinancing 5 years interest rate swaps could have such an impact as when I was working in treasury back in the 90s they were very rare as they cost so damn much. I guess the rise of the fixed rate mortgage will have increased the market for longer dated swaps.

MegaMiniMouse

ILW wrote: »

The whole system does seem to have changed.

We now have savings paying quite a lot over base and much borrowing way over base.

We also have inflation running at around 7 or 8 times base.

It all seems to have fallen apart.

It's called 'Sailing in Uncharted Waters'

Nobody, but NOBODY, has any clue about where any of this will end up!

MMM

Pobby

Uncharted waters. I believe that. My wife and I, having paid into pensions, hopefully to get £15k a year will see nothing like that. 6 figures in savings, eroded by inflation. My wife earning not a great salary. My business is very quiet, thankfully no heavy overheads.

To my mind, house prices are ridiculous. That is just in the last decade or so. The great ponzi. I nearly went mad, down size and buy an apartment in Spain. Pleased I didn`t, but , still none the less, I see most things going up in price, yet IRs are at a stupid low. I say that for a lot of my life IRs were just a little over 8%. In fact, that, inmho kept the market sensible.

Long way to go to play this out.