Tuesday, Mar 13, 2007
Crash or 8% - either will do
Daily mail: Raise interest rates or face economic disaster
Interest rates need to go above eight per cent to control booming house prices, a leading economist has warned.
Posted by holding out @ 08:40 AM (156 views) Add Comment
11 Comments
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1. Rimmer said...
Blimey i was spot on for a change, 8% by 2008
2. Davros said...
Blimey. That'll shake the Daily Mail readers won't it?
3. Steve said...
There is absolutely no way the BoE will invrease rates to 8%.
This house price boom has an awfully long way to run yet.
4. paul said...
Wow some economic sense from the Daily Maul. I've said for a long time that a crash and subsequent recovery is now the optimistic scenario - decades of Japanese-style deflation is the more likely and less optimistic course of events.
5. holding out said...
Rather amazingly it's actually their lead story. The reason I know this is that it was reported on the Today programme. There are also a lot of comments and not as you might expect form DM readers sympathetic towards high house prices
.
6. waitingfor hpc said...
too late this. Crash is now a case of when not if. 8% IR's will cripple many people but bring some sense back to the world. Did anyone see focus on itv last night. 25 year olds with 18K credit card debts filing for IVA's???
7. george monsoon said...
waiting for HPC is absolutely correct. This is a matter of "when" not "if"
has anyone else noticed that the media are all turning bear? Probably because the situation is now affecting their lives as well.
I do think interest rates need to go up significantly. Boiling the frog is not doing anyone any favours, and I only hope that the BoE and the Government take action to this effect before they get forced into a corner and are forced to push them up to prop up the pound.
8. tyrellcorporation said...
Waiting. A mate of mine has just had £40k written off using an IVA. He's apparently started spending again with the purchse of a £2500 Uber PC - the merry-go-round whirrs into life again! We're being forced (through bank charges) to pay for other people's profligacy. We're the mugs!!!
9. C'mon Correction said...
TC - a few bank charges won't make up for the amount banks will be writing-off over the coming years, I think the last years stats on IVA's, repossessions etc will be a tip of an iceberg.
Sooner rather than later we'll see credit tightening up dramatically, your friend will find himself high and dry for years.
10. mrmickey said...
I agree tyrel, were seeing this in bank charges being brought in on current accounts even if you never go overdrawn, charges on your credit card if you don't spend enough and now BT charging you if you don't sign up for direct debit even if you always pay on time, the broom handle will certainly be seeing plenty of action over the coming years.
11. waitingfor hpc said...
tyrellcorporation - that is not fair on the rest of us???? Are u sure he can do that\? That seems so wrong????? How we do protest against these people who have no regard for debt or money?