Debate House Prices


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Stagflation: Batten Down The Hatches ... here it comes (allegedly)

Obviously we're all sat just watching things unfold. And can all theorise on what may or may not happen.

Some things seem certain; Government intervention takes on new guises.

Here's a report from Gordon Brown's camp:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/09/cnpain109.xml

"Britons must steel themselves for a sharp fall in living standards"
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Comments

  • Treadmill
    Treadmill Posts: 1,102 Forumite
    A period of higher inflation would benefit me as I get a RPI+0.5 payrise each year, A few years @ 10% would shrink my mortgage nicely... every cloud etc :-)
  • clobber_2
    clobber_2 Posts: 472 Forumite
    Gah. Meanwhile, in the public sector, my pay "rises" are being used to "control inflation".
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    clobber wrote: »
    Gah. Meanwhile, in the public sector, my pay "rises" are being used to "control inflation".
    Meanwhile, in the private sector, pay "rises" will disappear overnight; they are already being replaced by wage cuts. There's also less security of job in the private sector. Certainly less perception of security - and less Associations/Unions to support workers (most small companies have no Unions or support mechanisms at all).
  • Treadmill
    Treadmill Posts: 1,102 Forumite
    There was an interesting program about Thatcher and Monetarism on last night, not much has changed really has it ?
  • tradetime
    tradetime Posts: 3,200 Forumite
    Treadmill wrote: »
    A period of higher inflation would benefit me as I get a RPI+0.5 payrise each year, A few years @ 10% would shrink my mortgage nicely... every cloud etc :-)
    Seems like a good pay deal, linked to RPI. Of course savings will be hit and as interest rates rise you can bet mortgage rates will outpace. I think we could see a return to the 15% mortgage rates before too long. Banks will have already accepted for their models that certain mortgages will not survive and therefore must offset the cost by milking the good mortgages.
    Stagflation is imho the ultimate nasty, and very hard to combat by any conventional means.
    Sadly I feel we are in the eye of a financial and economic hurricane that is still gathering energy, we can do little but wait for the back wall to hit us.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • Treadmill
    Treadmill Posts: 1,102 Forumite
    My mortgage is 5.99 fixed for the term fortunately, So if inflation rises above that I'll be paying negative interest while getting above (If you believe the figures which I dont) inflation payrises.

    As it stands at the moment I have no savings to speak of, I use any money that I have surplus to overpay my mortgage, I work on the Railway so the job is fairly recession proof.

    I realise not everyone is this fortunate though, people around here who work in the building trade are already starting to get laid off.
  • tradetime
    tradetime Posts: 3,200 Forumite
    My mortgage is 5.99 fixed for the term fortunately,
    Nice one, I salute you sir. That may prove to be a very wise decision in the years to come.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • neas
    neas Posts: 3,801 Forumite
    isnt the railway privatised? When people can't afford to pay the higher fuel rises.. and walk to work or loose their job.... railways will run less.

    Nobodys job is really 'recession proof'. everything hurts everything. Less commuters means less revenue for your company... less money to give you pay rises.... less need for people to do X Y Z job... its cyclic.
  • John_Pierpoint
    John_Pierpoint Posts: 8,396 Forumite
    Part of the Furniture 1,000 Posts
    If you are big and strong buy a cycle rickshaw, so you can get customers who can no longer afford the road fuel linked taxi fares.

    The Government will really have turned us into a third world country then.
  • dopester
    dopester Posts: 4,890 Forumite
    neas wrote: »
    isnt the railway privatised? When people can't afford to pay the higher fuel rises.. and walk to work or loose their job.... railways will run less.

    Nobodys job is really 'recession proof'. everything hurts everything. Less commuters means less revenue for your company... less money to give you pay rises.... less need for people to do X Y Z job... its cyclic.

    I agree. Except for: http://loseloose.com/

    Losers spell it looser. :mad:
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