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BOE in rate shocker

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Comments

  • DervProf
    DervProf Posts: 4,035 Forumite
    Graham_Devon wrote: »
    Derv, debt is wealth. Accept it, or understand you need "educating".

    However, you can sit there and smile when those suggesting debt is good, are actively going round stating they are overpaying, in the aim of being debt free.

    What's actually meant is debt is good if it's seen as a pyramid scheme, and others taking on larger debts behind you can increase your wealth.

    According to chucky, I can't be educated, so I'll just have to accept it.

    Hang on a second, chucky said it, so I won't accept it.
    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
    DervProf wrote: »
    According to chucky, I can't be educated, so I'll just have to accept it.*

    Hang on a second, chucky said it, so I won't accept it.


    * It appears that chucky may be wrong (amazing, but true).

    I have being taking on further education, and so far it appears that I am rather good at being educated.
    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
    edited 10 June 2011 at 7:56PM
    DervProf wrote: »
    It is a form of wealth, but what is the value of the wealth ? How rich is the person that lives in the house ?

    If you have that attitude, you will have a very boring life. So I take it then you are against buying anything using debt, regardless of your ability to service the debt. You will be pretty old before you save up for a nice house...
    DervProf wrote: »
    They may not be insolvent, but if the owners sell the club, how rich will they be ? Very rich, if someone is willing to take on the club's debts, not so rich if they aren't.

    So a very profitable business would be worth nothing to a prospective buyer because it has a large but manageable level of debt? A potential investor would be concerned in the business' ability to service its debt (i.e. interest cover) and the ratio of debt to equity (gearing), not simply the amount of debt expressed in pounds.
  • flimsier
    flimsier Posts: 799 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    lemonjelly wrote: »
    No way dude!:cool: They were easily the size of a 30cm ruler back then...

    Agree 100%.
    Can we just take it as read I didn't mean to offend you?
  • flimsier
    flimsier Posts: 799 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    mcc100 wrote: »
    Yawn ......

    You are an anonymous poster who continually boasts each month about how well you are doing as base rates are held at 0.5% ......

    Who gives a toss ? ..........

    Your post is less interesting than his/ hers.
    Can we just take it as read I didn't mean to offend you?
  • DervProf
    DervProf Posts: 4,035 Forumite
    Kohoutek wrote: »
    If you have that attitude, you will have a very boring life. So I take it then you are against buying anything using debt, regardless of your ability to service the debt. You will be pretty old before you save up for a nice house...

    Really ?

    I borrowed money to buy my house (after saving up a decent deposit).

    I didn't borrow any other money (apart from borrowing to buy a car).

    The last loan I had was taken, even though I have saved enough to buy a car. The interest on the loan was less than the interest I was earning on my savings.

    The money I saved, from not paying lots of interest on borrowed money, is now waiting to be spent, as I see fit.

    Any money you borrow, is like spending tomorrow's wages today. Sometimes that's a good idea, but I recommend borrowing as little as you need. It's cheaper in the long run.
    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
    DervProf wrote: »
    Really ?

    .....

    Any money you borrow, is like spending tomorrow's wages today. Sometimes that's a good idea, but I recommend borrowing as little as you need. It's cheaper in the long run.

    So why did you post that weird stuff earlier like this?
    DervProf wrote: »
    To me, being "rich" means that you have your own money in your own bank account. Or you have assets that you own, that you can sell. Having a pile of debt means that your "richness" might not be as it appears.
  • DervProf
    DervProf Posts: 4,035 Forumite
    edited 10 June 2011 at 8:47PM
    Kohoutek wrote: »
    So why did you post that weird stuff earlier like this?

    Why not ?

    Do I contradict myself ?

    I don't think so.

    And please explain what was weird.
    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
    DervProf wrote: »
    Why not ?

    Do I contradict myself ?

    I don't think so.

    Well you seemed pretty opposed to debt of any kind. I was beginning to suspect you might be "debtistheft".
    DervProf wrote: »
    And please explain what was weird.

    Because most people can get their head around the concept that someone that lives in a £1m home and has the income to service their mortgage is rich.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 10 June 2011 at 9:28PM
    DervProf wrote: »
    You might not be able to, but an entrepeneur could.

    What are you on about you don't know what I do for a living.
    But even as an entrepeneur the more you borrow does not mean you earn more.

    9 out of 10 start ups fail.

    companies borrowing more and more can be overleaveged.
    So you are still wrong with your smart @ss remark

    The only way to look at in life or in terms of companies the more you earn (profit) the more you can borrow. It does not mean you have to but it is 100% true.
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