Wages Rise, Unemployment falls again....

chucknorris

mwpt wrote: »

Nothing personal, but this typifies the moral hazard our economic policies advocate. People complain that the banks were too big to fail, but actually, it's the private sector indebted who are.

As a mortgage holder, I'm one of them btw, but I can at least admit it is what it is.

I'm struggling to see why I would take it personally? Because I said despite being £29k better off per annum, I still wasn't sure what I wanted (so it wasn't as if I was cheering the poor economy). Also what am I not admitting? Obviously the Gov will try to keep all in the plates in air, rather than letting them all crash to the floor, I'm not saying that they will necessarily always succeed, but they will try.

Thrugelmir

Joeskeppi wrote: »

I think we need to work on your definition of a "normal rate".

Base rate in the region of 3.5% to 5%.

The US Fed may make it's first tentative move as early as September.

chucknorris

mwpt wrote: »

I disagree. I think that rates this low signify an economy not strong enough to grow by normal productivity rather than high levels of debt. You can define the argument on the semantics of normal if you like but my original question was why someone would be pleased that pressure is off to raise rates.

My guess is that someone is highly leveraged and reliant on low rates.

Well you certainly guessed wrong about me, our mortgages are only about 13% of our property portfolio, and could be paid off with parts of our other investments/savings in our overall portfolio.

Thrugelmir

Generali wrote: »

FWIW, you'd expect real wages to increase at a 2-2.5% pa so I reckon this is right at the very top end of normal.

I expect the Public Sector to be locked down for the next 5 years when GO has his July budget. Difficult to see 2% plus across the board in a deflationary environment in the private sector either.

chucknorris

Thrugelmir wrote: »

I expect the Public Sector to be locked down for the next 5 years when GO has his July budget. Difficult to see 2% plus across the board in a deflationary environment in the private sector either.

I think I'll be lucky if I get 1% this year (public sector), it doesn't really matter though, because after too'ing and fro'ing about retirement for quite some time, I have now made my mind up to retire next summer.

mwpt

chucknorris wrote: »

I'm struggling to see why I would take it personally? Because I said despite being £29k better off per annum, I still wasn't sure what I wanted (so it wasn't as if I was cheering the poor economy). Also what am I not admitting? Obviously the Gov will try to keep all in the plates in air, rather than letting them all crash to the floor, I'm not saying that they will necessarily always succeed, but they will try.

I phrased it all wrong. When I said nothing personal, I meant the comments were not directed at your personally, but at the state of affairs in our country as a whole.

lisyloo

I would expect to get nothing.
My job could be offshore and probably will be at some point so there is no pressure on our bosses I'm afraid.

mwpt

chucknorris wrote: »

Well you certainly guessed wrong about me, our mortgages are only about 13% of our property portfolio, and could be paid off with parts of our other investments/savings in our overall portfolio.

Err yep, but my comment was aimed at the guy who said he was pleased there was no pressure to raise rates.

chucknorris

mwpt wrote: »

Err yep, but my comment was aimed at the guy who said he was pleased there was no pressure to raise rates.

What makes you think that he isn't in a similar position as me? After all I am also pleased with the extra profit that the low rates have brought to the table.

mwpt

chucknorris wrote: »

What makes you think that he isn't in a similar position as me? After all I am also pleased with the extra profit that the low rates have brought to the table.

I was curious why someone wouldn't want to see interest rates raised. I speculated that if I was leveraged and low rates were good for my income, I wouldn't want rates to rise. I extrapolated from there. If it's not true, it's not true.