Interest rate rise?

Crashy_Time

Jack_Johnson_the_acorn wrote: »

You're making a shitload of assertions without any evidence to back up your claims.

I see how you got the "Joker" moniker now.

You are just hoping that things will stay the same, without any hard thinking involved it seems?

Jack_Johnson_the_acorn

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Crashy_Time wrote: »

You are just hoping that things will stay the same, without any hard thinking involved it seems?

I'm hoping for a crash to be honest Crashy. Looked at a 5 bedroom detached house at the weekend but it needed too much work on our budget so a crash would be rather handy. Otherwise we'll keep paying our £470 per month mortgage (remortgage booked for £420 for 5years). Bought ours for £127k in 2011 worth £160k now. Not bad considering the amount of rent we've saved about (£300pm) for a less attractive rental. If we don't move we'll extend into the loft as we should get another 2 double beds + ensuite. I'll let you know what we decide in a few months depending on this massive crash you've been predicting for the last 25years

toomsie

Interest rates have been unnaturally low for some time, so I expect unnatural things to happen in future.

toomsie

Jack_Johnson_the_acorn wrote: »

You're making a shitload of assertions without any evidence to back up your claims.

I see how you got the "Joker" moniker now.

If I understand correctly, the interest rate is set by market forces. When there are too many savers, the bank sets interest rates low to encourage borrowers to borrow money. When there is a shortage of savers, then the bank has less money to lend out so they put up interest rates.

See it as like a relationship between Car Manufacture, dealerships and traders and the customer. A shortage of cars will lead to expensive cars. Since if you only have 2 cars and 10 customers, you are going to sell the car to the customer willing to pay the most. And vice versa when there are 10 cars for 2 customers.

Unfortunately today, interest rates are set by the central Bank-Of-England. They set low-interest rates so the government can borrow at low rates. This low-interest rate helps those well-connected people in power borrow at low rates and invest in a market that has higher yields such as the stock market, property or higher-yielding bonds.
Max Keiser calls this the interest rate Apartheid (E743).

Will connected rich has access to low-interest rates, the very poor have access to Wonga(fast talking money).

We can all agree that government debt is vastly more then it used to be. And it is accelerating. While those who are dependent on government are increasing such as aging population and single parenthood due to lower marriage rates. Also young families who in the past would buy a house, now rent from the council or gets more housing benefit to help with the increased cost of living.

Jack_Johnson_the_acorn

toomsie wrote: »

If I understand correctly, the interest rate is set by market forces. When there are too many savers, the bank sets interest rates low to encourage borrowers to borrow money. When there is a shortage of savers, then the bank has less money to lend out so they put up interest rates.

See it as like a relationship between Car Manufacture, dealerships and traders and the customer. A shortage of cars will lead to expensive cars. Since if you only have 2 cars and 10 customers, you are going to sell the car to the customer willing to pay the most. And vice versa when there are 10 cars for 2 customers.

Unfortunately today, interest rates are set by the central Bank-Of-England. They set low-interest rates so the government can borrow at low rates. This low-interest rate helps those well-connected people in power borrow at low rates and invest in a market that has higher yields such as the stock market, property or higher-yielding bonds.
Max Keiser calls this the interest rate Apartheid (E743).

Will connected rich has access to low-interest rates, the very poor have access to Wonga(fast talking money).

We can all agree that government debt is vastly more then it used to be. And it is accelerating. While those who are dependent on government are increasing such as aging population and single parenthood due to lower marriage rates. Also young families who in the past would buy a house, now rent from the council or gets more housing benefit to help with the increased cost of living.

That has nothing to do with anything that the joker has asserted such as:

fact is the economy is only going to get worse and worse, but interest rates will still have to back up because they have been held too low for too long.

Thrugelmir

toomsie wrote: »

If I understand correctly, the interest rate is set by market forces. When there are too many savers, the bank sets interest rates low to encourage borrowers to borrow money. When there is a shortage of savers, then the bank has less money to lend out so they put up interest rates.

Since the early 70's banks have been allowed to leverage their balance sheets. Resulting in progressively less dependence on retail deposits. After the bust of 2008. Banks are slowly being reigned in under Balse III regulations.

At the G20 summit in Toronto in May 2010. The issue of fiscal tightening was discussed at length. The challenge being that Western Governments were heavily indebted. Resulting in the decision for loose fiscal Central Bank policies while allowing time for the balloon to be deflated. The global economy could not have withstood the shock of austerity and rising interest rates being undertaken concurrently.

toomsie

Jack_Johnson_the_acorn wrote: »

That has nothing to do with anything that the joker has asserted such as:

Increasing national Government debt and Aging population are only some of the factors that will guarantee that the quality of life will get worse.

Increments in technology will help. So will game-changing technology such as robots and self-driving cars. But even these can displace jobs. Without technology, we would have already fallen.

Fall of Britain by Stefan Molyneux.
https://www.youtube.com/watch?v=x-ibcORs4I4

The national debt has increased to £1.78 trillion from £1.219 trillion since the creation of this video.

toomsie

Thrugelmir wrote: »

Since the early 70's banks have been allowed to leverage their balance sheets. Resulting in progressively less dependence on retail deposits. After the bust of 2008. Banks are slowly being reigned in under Balse III regulations.

At the G20 summit in Toronto in May 2010. The issue of fiscal tightening was discussed at length. The challenge being that Western Governments were heavily indebted. Resulting in the decision for loose fiscal Central Bank policies while allowing time for the balloon to be deflated. The global economy could not have withstood the shock of austerity and rising interest rates being undertaken concurrently.

Are you saying there is a possibility that things may be ok.

Thrugelmir

toomsie wrote: »

Are you saying there is a possibility that things may be ok.

What "things"? Debt is globally at a higher level than pre the GFC of 2007/08. In this highly inter-connected world. Sneezes will undoubtedly ripple around impacting the most unexpected places. The UK is in a better place. Far from fixed. Yet progressively heading in the right direction. When compared to Italy. Where the EU's current focus really is. Brexit being a sideshow.

toomsie

Thrugelmir wrote: »

What "things"? Debt is globally at a higher level than pre the GFC of 2007/08. In this highly inter-connected world. Sneezes will undoubtedly ripple around impacting the most unexpected places. The UK is in a better place. Far from fixed. Yet progressively heading in the right direction. When compared to Italy. Where the EU's current focus really is. Brexit being a sideshow.

If debt is heading in the wrong direction, and so are we. Its been going this way for a very long time worldwide.

Mike Brady in The Brady Bunch was an architect. How much money would he need today to have the same quality of life. He paid all of the family and a big house and a maid. I wonder how far he will get in London 2018.