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Debate House Prices


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Straw that broke the camels back?

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Comments

  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 22 March 2013 at 10:18PM
    Carl31 wrote: »
    Interest rates impact the economy much more than mortgages, low rates mean mortgage holders gain, while other investors lose out

    Anyway, why would raising interest rates a couple of % leave people homeless?

    Im not in the market for buying property, i just want to see some balance and sense in the economy, after all the current strategy doesnt seem to be working very well does it?

    It will help people with money invested in banks etc but how would that help economy.

    It amazes me how people think that a fall in house prices will put everything right when a lot of young people are struggling to get full time employment let alone well paying employment.

    　
  • dryhat
    dryhat Posts: 1,305 Forumite
    ukcarper wrote: »
    Not directly but people are calling for an interest rate rise so perhaps they can explain how it would help the country.

    So why are rates so low?
  • Carl31
    Carl31 Posts: 2,616 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    ukcarper wrote: »
    It will help people with money invested in banks etc but how would that help economy.

    How will savers benefit? Because lending by the banks becomes attractive again, business then benefits as they can borrow at lower rates and invest more, which will probably improve employment levels
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Graham_Devon wrote: »
    Once the fall has happened .

    That ended 4 years ago.

    We're nearly finished bumping along the bottom, and the recovery is next.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    dryhat wrote: »
    So why are rates so low?

    I thought the idea was to try and stimulate the economy and help buisness.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Carl31 wrote: »
    How will savers benefit? Because lending by the banks becomes attractive again, business then benefits as they can borrow at lower rates and invest more, which will probably improve employment levels

    If you raise interest rates how can business borrow at lower rates.

    Savers will benefit from higher rates.
  • dryhat
    dryhat Posts: 1,305 Forumite
    ukcarper wrote: »
    I thought the idea was to try and stimulate the economy and help buisness.


    Then you thought wrong.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    That ended 4 years ago.

    We're nearly finished bumping along the bottom, and the recovery is next.

    Any comments on the original post?
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    dryhat wrote: »
    Then you thought wrong.

    No if you thought it was just to keep people in their homes you are wrong
  • Carl31
    Carl31 Posts: 2,616 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    ukcarper wrote: »
    If you raise interest rates how can business borrow at lower rates.

    Savers will benefit from higher rates.

    Banks benefit from higher rates, hence lend more

    Hence savers benefit from banks lending
This discussion has been closed.
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