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Debate House Prices
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Worried about higher interest rates?
Comments
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Thrugelmir wrote: »Will people lend enough to fund the budgetry spend though?
Well if not they'll have to reduce spending or increase taxes. IMO we'll see occasional reductions in real total debt or debt vs GDP but we'll run a deficit in perpetuity.0 -
Who cares about national debt anyway?
No countries seem to bother about it and they will never pay it back so it's pretty meaningless.
Who do all these countries actually owe this money to? When are the bailiffs going to come knocking?
The financial markets can always be manipulated to suit in the end.0 -
shortchanged wrote: »Who cares about national debt anyway?
No countries seem to bother about it and they will never pay it back so it's pretty meaningless.
The debt needs to be serviced - by you.
You'd have a Connery if someone turned up on here suggesting they were going to borrow as much as they could and didn't plan to ever repay any capital. It's a ticking time bomb if a person does this but meaningless for a government?shortchanged wrote: »The financial markets can always be manipulated to suit in the end.
Why was there a GFC then?0 -
ReutersNews wrote: »Hi
A survey out today from the Money Advice Service shows that almost a fifth of people with mortgages say they would struggle to cope with an increase in interest rates.
I for one worry every day about a raise in interest rates. I pray it will not come to it and I can only afford to have 1 holiday a year, or worse still, will not be abple to upgrade to the newest iPad! It does not warrent thinking about!
Luckly for me, my house has gone up naeraly 20% in the last 18 months (South East near Gatwick) so have easily fallen into a more disarable LTV bracket so any interest rates rises should be counter balanced with my new LTV when looking for a new deal next year.0 -
The debt needs to be serviced - by you.
You'd have a Connery if someone turned up on here suggesting they were going to borrow as much as they could and didn't plan to ever repay any capital. It's a ticking time bomb if a person does this but meaningless for a government?
Why was there a GFC then?
The debt is rolled over each year as different bonds are repaid and new ones issued. Considering we have borrowed a big chunk of this money from ourselves then it is not really the same as an individual borrowing as they cannot print their own money whereas the governments can and has.
The GFC was also a result of manipulated events and a cause to manipulate other events since.0 -
The debt is rolled over each year as different bonds are repaid and new ones issued. Considering we have borrowed a big chunk of this money from ourselves then it is not really the same as an individual borrowing as they cannot print their own money whereas the governments can and has.
Yes there are distinctions between consumer and government borrowings but they're both effectively borrowing from our future selves and the debt needs to be serviced. Japan borrows a lot from its citizens - they could print the money to repay it but the effect would be the same as if they decided not to repay it i.e. the creditors would be shafted.The GFC was also a result of manipulated events and a cause to manipulate other events since.
Yes I was taking issue with Shortchanged statement that financial markets could be manipulated to suit. Clearly it's not that easy otherwise we'd all be as rich as Kings and the GFC would never have happened.0 -
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Crashy_Time wrote: »And as it is their dream home, and no one will be able to buy it off them anyway, they should be happy as pigs in debt?
Such envy really is quite tedious0 -
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Crashy_Time wrote: »Is "envy" your new buzz word? Yes I really envy people up to their eyeballs in debt on a depreciating asset in a world of deflation.
Although house prices have and still are rising since 2011.... I've just fallen into a lower LTV band btw, with all this talk of deflation, seems less likely we'll see rates rising soon YAY :beer:0
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