Crash postponed?

Generali

wibble68 wrote: »

I agree that on the whole it's always been hard to buy your first house.

Where as in the past house prices were more in line with wages, that was offset with higher interest rates, which made it just as much a struggle as nowadays.

The problem I see with the current climate is that people are borrowing huge amounts of money relative to their wages. I see this as a no win situation.

I say this because if inflation takes off then higher interest rates will cause people to be in the sh**.

Alternatively, if inflation stays low for many years to come, then the huge amounts being borrowed to get on the mythical ladder, will not get eroded as quickly as it did in the past.

So future generations will struggle for a lot longer than their parents did.

They're also being crippled by the increasing cost of pensions due to people living longer and by having to pay for the pensions of their parents as well as their own.

If you're under 45 and work in the private sector you can forget retiring before you're 75 unless you're saving very hard. Of course, if you're in the public sector you'll retire at 60 on an index linked pension. Unless, of course, the voters get fed up with paying for them in which case you're screwed too!