"Any sane person should worry about what will happen when IR's rise"

CLAPTON

if Vince truely believes that a rise in interest rates will destabilise the whole economy, then presumably he will resign, if the government, in which he sits, allows it to happen.

Graham_Devon

wotsthat wrote: »

If the village idiot manages to put his shoes on right feet one day it doesn't mean his opinion on footwear suddenly becomes worth paying attention to.

That didn't really answer the question. Instead you merely threw an insult.

Thrugelmir

Quote:
Vince Cable has warned the economy is being destabilised by booming house prices and any sane person should worry about what is going to happen when interest rates rise as the economy returns to normal.

The business secretary also warned that household debt in relation to income is set to become significantly higher in the UK than almost anywhere else, and contains serious dangers that represent "a real, real, real worry" for policymakers and homeowners.

Much has been written on the topic since 2008. Politicians have steered clear of the topic. One imagines because they've no control of influence. The numbers are just so potentially huge. So it's a case of cross fingers and hope.

wotsthat

Graham_Devon wrote: »

That didn't really answer the question. Instead you merely threw an insult.

The question was rhetorical so didn't need an answer. We all know poor interest rate policy has the power to damage the economy.

The village idiot will tell you rain makes you wet. Doesn't make him the go to guy for the weather forecast.

shireknight

Sorry but I think the interest rates should go back up and I'm still surprised that they were allowed to drop as low as they did, it's the savers I'm thinking of, people spent decades saving money only for it to be sitting in their savings accounts gathering barely anything but dust.

Generali

shireknight wrote: »

Sorry but I think the interest rates should go back up and I'm still surprised that they were allowed to drop as low as they did, it's the savers I'm thinking of, people spent decades saving money only for it to be sitting in their savings accounts gathering barely anything but dust.

To look at the full picture, savers were bailed out to the tune of billions of pounds. They've done pretty well out of the GFC.

purch

Interest rates need to be set at a level that suits the entire economy, not just a part of the economy however large, or however loud it shouts

The Base rate of 1/2 % is set for that reason, despite the ludicrous claims that it is at that level to suit one particular part of the economy.

A rate that is set too low to assist borrowers, or too high to assist savers will ultimately be of no benefit to either.

CLAPTON

purch wrote: »

Interest rates need to be set at a level that suits the entire economy, not just a part of the economy however large, or however loud it shouts

The Base rate of 1/2 % is set for that reason, despite the ludicrous claims that it is at that level to suit one particular part of the economy.

A rate that is set too low to assist borrowers, or too high to assist savers will ultimately be of no benefit to either.

it is impossible to set an interest rates that suits the entire economy.

the best one can hope for is an interest rates (plus other policies) that maximises UK income whilst not doing to much harm to the weaker areas

IronWolf

When I went looking around a HA flat up for sale under shared ownership I asked about the rent and would it stay at 3% the value or vary with interest rates. I asked what would happen if interest rates went to 10% and he looked at me as if I was crazy for even letting the thought cross my mind! He just said "base rates are only 0.5% now you know"

IveSeenTheLight

Graham_Devon wrote: »

Vince cable speaks up again!

Vince Cable has warned the economy is being destabilised by booming house prices and any sane person should worry about what is going to happen when interest rates rise as the economy returns to normal.

http://www.theguardian.com/money/2014/may/19/vince-cable-rising-house-prices-destabilising-economy

Absolutely shocking warning from the Secretary of State for Business, Innovation and Skills and an economic graduate.

Nobody should be "worried" about interest rates increasing. What he should be articulating is for people to consider and be prepared for rate rises.

There is certainly nothing to cause "worry" or anxiousness.

Interest rates WILL rise at some point and any "Sane" person will be capitalising whilst rates are low and provisioning for when rates rise.