19 year mortgage 8itch Posted November 6, 2012 Share Posted November 6, 2012 You seem quite wise and understand the situation. I agree with what the BofE are doing. The government should be building more houses and the increases in pension age when there are 2½ million unemployed is a joke. 10 years ago I would probable agreed with the savers but when it comes down to it. Debt is money. No, I think GPS gets it but you don't. Savers would rather see it burn than spend it and when it's all gone that saving mentality will go far further that what we see as popular culture. We're very nealy t the "bring it on" stage. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted November 6, 2012 Share Posted November 6, 2012 1352125298[/url]' post='909179471']The only other option as hard earned long-term savings to provide future self-sufficiency or saving hard to use for a house deposit are gradually being stolen along with pensions...is to spend less, shop less, drive less, eat less, stop using unnecessary services, stop going to the pictures, buying newspapers and books, don't bother getting married, buying a new car, home improvements etc etc.........top up the interest rates yourself by spending less....if that is how they want to play it.....needs must. I'm a bit squiffy and on the train, but this sounds like the reverse of a feedback loop. Don't get me wrong, the feedback loop is still operating, but not in the intended direction. I know! It's called deflation? No? Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted November 6, 2012 Share Posted November 6, 2012 You know the answer. I think it's patently obvious that I don't Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted November 6, 2012 Share Posted November 6, 2012 1352135478[/url]' post='909179637']The lower the rates the less people will spend. Making it worse. Duh. ^ THIS! Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 6, 2012 Share Posted November 6, 2012 I'm a bit squiffy and on the train, but this sounds like the reverse of a feedback loop. Don't get me wrong, the feedback loop is still operating, but not in the intended direction. I know! It's called deflation? No? No! Biflation! Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 6, 2012 Share Posted November 6, 2012 No, I think GPS gets it but you don't. Savers would rather see it burn than spend it and when it's all gone that saving mentality will go far further that what we see as popular culture. We're very nealy t the "bring it on" stage. In the current economic climate, when the government shuts 'duck', I jump, because it pays to do the opposite to what they want. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted November 6, 2012 Share Posted November 6, 2012 1352235153[/url]' post='909180823']No! Biflation! In a crude way, I'm going to agree with you on this. Bear with me...... I was watching an old episode of 'Pie in the Sky' the other day when the camera swung by the actors walking past a local shop. Plastered on the shop front was a sign advertising milk, 4 pints for 99p. This was 1994!!! We are in this bizarre situation where the nominal price of milk (and most other groceries in general) has hardly changed in almost 20 years, yet the nominal price of a house has reached orbit!! Something is not right. Quote Link to comment Share on other sites More sharing options...
gf3 Posted November 7, 2012 Share Posted November 7, 2012 no the best rate is 3.4% five year ISA down from 4% 2 weeks ago http://moneyfacts.co.uk/compare/isas/cash-isas-transfers/ Well they didn't stay long at 3.4%. down to 3.35% now. Banks that offer the best rate only stay in the top position for about 3 days and then the rate goes lower. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted November 7, 2012 Share Posted November 7, 2012 (edited) Yeh should have bought a house and seen my money grow Precisely, I see Knight, Frank have a report out today predicting peak prices in nominal terms (not real) will not return unitil 2019. 12 years of owning a money pit with zero return* that is some dead money or 12 years of some interest in cash. And remember the fixed rate bonds started out at 7% in the autumn of 2007. * We have a mortgage free property and fiat currency and I'm backing the fiat in this deflationary environment.( the house is dead money) Edited November 7, 2012 by crashmonitor Quote Link to comment Share on other sites More sharing options...
Bear Necessities Posted November 7, 2012 Share Posted November 7, 2012 around the end of 2007 beginning of 2008, I had a (sadly not very full) savings account with a rate of 10% locked in for a year with the rest in an account at at least 6.5% I wish I had been confident enough to lock it away for 5 or more! But at that time I thought I would really need access to that money. Now I look at the rates and can only dream of those heady days! Quote Link to comment Share on other sites More sharing options...
gf3 Posted November 8, 2012 Share Posted November 8, 2012 Well they didn't stay long at 3.4%. down to 3.35% now. Banks that offer the best rate only stay in the top position for about 3 days and then the rate goes lower. Well that rate only lasted a day down to 3.2% now Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted November 9, 2012 Share Posted November 9, 2012 around the end of 2007 beginning of 2008, I had a (sadly not very full) savings account with a rate of 10% locked in for a year with the rest in an account at at least 6.5% I wish I had been confident enough to lock it away for 5 or more! But at that time I thought I would really need access to that money. Now I look at the rates and can only dream of those heady days! Surprising how so many have forgotten that during the initial crash phase there were high fixed rate bonds available because the banks were seeking solvency. The 7% fixed with Northern Rock for the five years ending December 2012 comes to mind. This was post Nationalisation, the then 35K guarantee (now extended to 85K) didn't count, you could actually bang anything in there and have gilt-edged security underwritten by the Government, and as an existing account this guarantee extends until maturity next month. Trouble was at the time we were greedily awaiting 10% bonds, which never materialised, when locking in would have been the best as you mention.t Really anyone that has stayed in cash for the last five years should have made a killing ( I haven't entirely -as we now own). My own return on cash since 2006 is about 4.5% net (about a 30% return on the average balance of the last 6 years) Compare that to property sinking about 16% and you have a calculation of 130/84 or losing a third of your money comparing a cash investment to a property investment. Rent doesn't count, my outgoings are the same mortgage free or renting, one is dead money in refub and repairs the other is dead money in rent because a home is always a liability like any other cost of living. Quote Link to comment Share on other sites More sharing options...
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