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CPI hits 4.4pct

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Comments

  • ILW
    ILW Posts: 18,333 Forumite
    Why should the indebted not be squeezed, I believe it is known as moral hazard.
  • DervProf
    DervProf Posts: 4,035 Forumite
    Graham_Devon wrote: »
    Well I for one am glad the BOE continue to monitor it.

    Yes, it's reassuring to know that the BoE are monitoring inflation. As long as they continue to do so, I'll be happy to continue paying higher food/fuel/clothing prices.
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • DervProf
    DervProf Posts: 4,035 Forumite
    ILW wrote: »
    Why should the indebted not be squeezed, I believe it is known as moral hazard.

    Correct.

    The younger generation will be watching what's going on. In some cases hey will have seen their parents take on large amounts of debt. They will have witnessed the credit crunch, and even if they don't fully understand it, they will know that no matter how much debt they take on, no matter what mess the financial markets get into, they won't end up in financial trouble. And in the unlikely event that they do struggle with their debts.........

    http://www.effectivedebtsolutions.co.uk/debt-written-off

    Marvelous !
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • Kohoutek
    Kohoutek Posts: 2,861 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ILW wrote: »
    Why should the indebted not be squeezed, I believe it is known as moral hazard.

    Our economy depends to a great extent on consumers and home owners being able to take on and service debt.
  • ILW
    ILW Posts: 18,333 Forumite
    Kohoutek wrote: »
    Our economy depends to a great extent on consumers and home owners being able to take on and service debt.

    So "prudence" is a bad thing?
  • wolvoman
    wolvoman Posts: 1,181 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ILW wrote: »
    Why should the indebted not be squeezed, I believe it is known as moral hazard.

    But do you beleive savers should be shielded from such moral hazard?
  • Kohoutek
    Kohoutek Posts: 2,861 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ILW wrote: »
    So "prudence" is a bad thing?

    Nope. But the prudent shouldn't expect the indebted to pay more interest to them than they can afford to...

    Do you seriously think that the indebted being squeezed would be beneficial to the UK economy as a whole, given the fragile state it's in?
  • ILW
    ILW Posts: 18,333 Forumite
    Kohoutek wrote: »
    Nope. But the prudent shouldn't expect the indebted to pay more interest to them than they can afford to...

    Do you seriously think that the indebted being squeezed would be beneficial to the UK economy as a whole, given the fragile state it's in?

    It may help prevent it all happening again.
  • DervProf
    DervProf Posts: 4,035 Forumite
    Kohoutek wrote: »
    Do you seriously think that the indebted being squeezed would be beneficial to the UK economy as a whole, given the fragile state it's in?

    Do you think that the economy would be in such a fragile state if there were less indebted people, or those with debt had smaller debts ?
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • ILW
    ILW Posts: 18,333 Forumite
    wolvoman wrote: »
    But do you beleive savers should be shielded from such moral hazard?

    Yes........
This discussion has been closed.
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