BOE to hold firm on low interest rates

IronWolf

lvader wrote: »

But it hasn't though has it, money supply has declined.

uhm, of course QE increases the money supply, that is its primary purpose. Not sure how anyone can dispute that??

lvader

IronWolf wrote: »

uhm, of course QE increases the money supply, that is its primary purpose. Not sure how anyone can dispute that??

Not when the money supply is decreasing at a faster rate than QE is increasing it.

lvader

sabretoothtigger wrote: »

Sounds like a rabbit in a hat.

And for the next trick, how to reduce gilt yields withouts extra QE, War!

chucky

OffGridLiving wrote: »

With so few people coming in here, I doubt that their attempts to scaremonger are very successfull. Fram what I've read, most home owners in here are enjoying the low rates and either investing their mortgage savings or making overpayments.

While the doomsters might think people are quaking in our boots and fretting about a rate rise, they're not. They're too busy concentrating on making hay while the sun shines.

They forum is good therapy for them trying to justify their lives and justify their financial decisions that they should have taken. It's good denial therapy for them.

OffGridLiving

chucky wrote: »

They forum is good therapy for them trying to justify their lives and justify their financial decisions that they should have taken. It's good denial therapy for them.

I'm a good example of what people in the 'real world' are probably doing. I have a huge mortgage and while it's becoming more manageable as time goes by due to a combination of overpayments, wage increases and reductions in my outgoings, I'm still out of my comfort zone and it would be painful if rates rose.

I therefore took the decision to get a 5 year fixed rate. Worries over. I now have 5 years to reduce my mortgage even further. In 5 years time when I need to remortgage, the financial world will be in a completely different place, but so will my finances.

What the doomsters on here consistently fail to understand is that governments and individuals won't sit idly on their hands while financial disasters play out - they do something about it. The government reduced interest rates and instigated QE; individuals can get mortgage fixes, reduce their outgoings, increase their income, sell things, etc.

It always makes me laugh when the doomsters justify themselves and say "Well, I was right. We would have had a crash if the government had not done <insert government intervention>". Did they really believe that the government would sit back and do nothing?

It's the same with home owners - do the doomsters really believe that as soon as rates start to rise, people won't do something about it?

Do doomsters never learn from their past misjudgements & mistakes?

ILW

OffGridLiving wrote: »

I'm a good example of what people in the 'real world' are probably doing. I have a huge mortgage and while it's becoming more manageable as time goes by due to a combination of overpayments, wage increases and reductions in my outgoings, I'm still out of my comfort zone and it would be painful if rates rose.

I therefore took the decision to get a 5 year fixed rate. Worries over. I now have 5 years to reduce my mortgage even further. In 5 years time when I need to remortgage, the financial world will be in a completely different place, but so will my finances.

What the doomsters on here consistently fail to understand is that governments and individuals won't sit idly on their hands while financial disasters play out - they do something about it. The government reduced interest rates and instigated QE; individuals can get mortgage fixes, reduce their outgoings, increase their income, sell things, etc.

It always makes me laugh when the doomsters justify themselves and say "Well, I was right. We would have had a crash if the government had not done <insert government intervention>". Did they really believe that the government would sit back and do nothing?

It's the same with home owners - do the doomsters really believe that as soon as rates start to rise, people won't do something about it?

Do doomsters never learn from their past misjudgements & mistakes?

During the last crash in the early 1990s the government did let things go naturally. There were a lot of repos.

Loughton_Monkey

OffGridLiving wrote: »

I'm a good example of what people in the 'real world' are probably doing. I have a huge mortgage and while it's becoming more manageable as time goes by due to a combination of overpayments, wage increases and reductions in my outgoings, I'm still out of my comfort zone and it would be painful if rates rose.

I therefore took the decision to get a 5 year fixed rate. Worries over. I now have 5 years to reduce my mortgage even further. In 5 years time when I need to remortgage, the financial world will be in a completely different place, but so will my finances.

What the doomsters on here consistently fail to understand is that governments and individuals won't sit idly on their hands while financial disasters play out - they do something about it. The government reduced interest rates and instigated QE; individuals can get mortgage fixes, reduce their outgoings, increase their income, sell things, etc.

It always makes me laugh when the doomsters justify themselves and say "Well, I was right. We would have had a crash if the government had not done <insert government intervention>". Did they really believe that the government would sit back and do nothing?

It's the same with home owners - do the doomsters really believe that as soon as rates start to rise, people won't do something about it?

Do doomsters never learn from their past misjudgements & mistakes?

All good points.

I have always called this a sort of "Darwinism" - except of the 'Financial Behaviour' variety, rather than genetic.

Those who adapt will survive. Those who continually look at and moan about the 'mouldy rind' part of the financial cheese will eventually starve, whilst those who seek out the good part [and there's always some somewhere], will thrive.

These days, we tend to put the dinasaurs into a zoo and try to keep the species going for posterity. This is good, provided people want to pay to come and see them.

The financial dinasaurs are generally to be found in the dole queues, benefits offices, rented hovels for which we also pay dearly, but involuntarily.

But they are also to be found on forums such as this, and the entertainment they provide us is 'free', so let's not complain too bitterly.

OffGridLiving

ILW wrote: »

During the last crash in the early 1990s the government did let things go naturally.

Do you have a linky? (to a mainstream website, not a 'lizard' one)

ILW

OffGridLiving wrote: »

Do you have a linky? (to a mainstream website, not a 'lizard' one)

This may help.

http://www.google.co.uk/#fp=5a2359cf96dc5f79&q=reposessions+1990

wotsthat

ILW wrote: »

During the last crash in the early 1990s the government did let things go naturally. There were a lot of repos.

I doubt the government chose to let repossessions be higher. Can't see the benefits of forcing households into long term financial problems due to short term issues. More likely a failure of policy response in the 1990's.

We're way past the point where low interest rates are in place to protect the indebted frightened homeowner. If rates rose I think most people would cope and those that can't, well; if they've not made the most of the last few years there's not much more that can be done.