'risk Of Debt Peril' When Interest Rates Rise

[TheCountOfNowhere]

http://www.bbc.co.uk/news/business-28442848

"'Risk of debt peril' when interest rates rise"

Interesting that they use the word "when", especially seeing it wont happen......

"Minutes of the Bank's Monetary Policy Committee, published on Wednesday, revealed that the committee's nine members voted to keep rates at 0.5%."

.....hmmm...thought so.

But But But:

"The Money Advice Service has claimed that 8.8 million adults have too much debt. However, it claimed that one third of them managed to make repayments and so went under the radar."

Well, mr BBc I dont give a ****. My savings and incomes has been robbed to help funded these debtors.l, many of whom will never pay back what they've borrow.

You can leave a comment:

"Are you worried about a rise in interest rates? I'm worried rates wont rise.My savings have been decimated by the bankers keeping rates low to suit themselves and their political chums. Millions upon millions of us have been robbed blind by these thieves and now we see a re-inflated and highly dangerous mega housing bubble, pricing out young people from being able to afford a family home or idiots being scared into buying a house just in case they miss out, or before rates rise. The BBc is culpable in their support of these policies and I look forward to the day when rates are forced to rise, a decent politician stands up against the bankers and this nonsense ends."

Where is the headline.

"Actual taxed and earned savings being robbed by bankers ability to keep rates to 0.5%."

The BBc I suspect, has an agenda.

Edited July 24, 2014 by TheCountOfNowhere

[interestrateripoff]

To be honest the headline should be risk of total collapse if rates rise, total risk of collapse if rates stay the same. Economy is fecked.

[smiley]

I'm also worried rates won't rise. Must they?

Could it be - nightmare scenario - that we've shifted to an economy where IRs peak at 1.5% at the top of the business cycle. Why is that not possible?

[dances with sheeple]

Demographics, the 40 something debt load and stay at home young people mean that the HPC is baked in whether they rise or not?

[The Masked Tulip]

Best thing you can hope for is some kind of flash crash in the markets and then buy in - I don't think the markets have gone down in a long time though.

[interestrateripoff]

I'm also worried rates won't rise. Must they?

Could it be - nightmare scenario - that we've shifted to an economy where IRs peak at 1.5% at the top of the business cycle. Why is that not possible?

In the current climate my own feeling is they won't get above 1% before we are back into a banking crisis and recession.

[scrappycocco]

Surely its all talk as usual to get a rise out of the markets. Rate rise will mean they have to do the debt jubilee thing because everyone is up to their eyeballs in debt. Then probably bail ins this time. I don't think it will happen until the world is stable enough to move to a proper single currency.

[Blod]

Notice that the article is buried in the business section. The media are becoming aware that the longer that rates remain low the more likely the economy will collapse at the first sign of a rate rise.

The economy has now slipped into a state where there is no way to avoid a complete collapse let alone mere HPC. All the lifeboats have left and there's no life preservers left. It is simply of timing.

[Reck B]

Surely its all talk as usual to get a rise out of the markets. Rate rise will mean they have to do the debt jubilee thing because everyone is up to their eyeballs in debt.

It's time to start again - the economy needs to be unshackled from remnants of the debt bubble.

Stick rates back up to 5% and either have a debt jubilee, or give everyone £20,000 which must be used to pay down any type of debt if you have it.

[Damik]

I do not think that rising the IRs by 0.25 / 0.5 % will make any difference. Perhaps just psychological, but not financial ...

London house prices are already falling; MMR stress tests against 7% IRs; the demage is done already

[WageWar]

It's all very 2005 again. I hear people around me on the train into work all talking about doing up houses. Things are buzzing and it's all started from an even higher level than before. People are like goldfish will do exactly what they did before if they can get away with it. The government won't do anything and neither will the BOE. A second crash and austerity won't be tolerated this time though.

[zugzwang]

It's all very 2005 again. I hear people around me on the train into work all talking about doing up houses. Things are buzzing and it's all started from an even higher level than before. People are like goldfish will do exactly what they did before if they can get away with it. The government won't do anything and neither will the BOE. A second crash and austerity won't be tolerated this time though.

What do you mean by 'won't be tolerated'? It took double digit stagflation and the discovery of North Sea oil + gas to dig us out the 1970s. The coming Osborne Depression will be infinitely worse.

[Bruce Banner]

It's time to start again - the economy needs to be unshackled from remnants of the debt bubble.

Stick rates back up to 5% and either have a debt jubilee, or give everyone £20,000 which must be used to pay down any type of debt if you have it.

Now that's not a bad idea, simple and fair, although many would pay off their debts and seek to borrow to the hilt again.

[Reck B]

Now that's not a bad idea, simple and fair, although many would pay off their debts and seek to borrow to the hilt again.

It would have to coincide with reforms in the financial service sector to prevent high levels of personal debt occurring again.

[The Masked Tulip]

It's all very 2005 again. I hear people around me on the train into work all talking about doing up houses. Things are buzzing and it's all started from an even higher level than before. People are like goldfish will do exactly what they did before if they can get away with it. The government won't do anything and neither will the BOE. A second crash and austerity won't be tolerated this time though.

And yet Kingfisher's share price fell 8% this morning because of poor sales at B&Q.

[cybernoid]

I do not think that rising the IRs by 0.25 / 0.5 % will make any difference. Perhaps just psychological, but not financial ...

London house prices are already falling; MMR stress tests against 7% IRs; the demage is done already

Debt peril eh, well no sh1t sherlock. But only for the few that did it to themselves after enjoying a lifestyle they never could have dreamed of otherwise.

I think the fears are overblown too, only a third of households have mortgages. Those that are up the creek deserve to be and should be shaken from the system and into a lifestyle they can afford, and whats wrong with that?

They were lucky to have got away with it for so long. The bill still wants paying and its about time those sat at the table stuffing their faces stumped up for it instead of everyone else who never set foot in the restaurant.

[R K]

What do you mean by 'won't be tolerated'? It took double digit stagflation and the discovery of North Sea oil + gas to dig us out the 1970s. The coming Osborne Depression will be infinitely worse.

UK was a manufacturing economy then. It's less susceptible to oil price volatility today. China on the other hand.........

[Reck B]

Debt peril eh, well no sh1t sherlock. But only for the few that did it to themselves after enjoying a lifestyle they never could have dreamed of otherwise.

I think the fears are overblown too, only a third of households have mortgages. Those that are up the creek deserve to be and should be shaken from the system and into a lifestyle they can afford, and whats wrong with that?

They were lucky to have got away with it for so long. The bill still wants paying and its about time those sat at the table stuffing their faces stumped up for it instead of everyone else who never set foot in the restaurant.

I say let them have it on the house... providing;

1) They are not allowed back in the restaurant

and

2) Everything on the menu is reduced by 60%

[goldbug9999]

Now that's not a bad idea, simple and fair, although many would pay off their debts and seek to borrow to the hilt again.

So long as *everyone* get the handout and including those without debt.

[Bruce Banner]

So long as *everyone* get the handout and including those without debt.

Of course.

[Sour Mash]

It's all very 2005 again. I hear people around me on the train into work all talking about doing up houses. Things are buzzing and it's all started from an even higher level than before. People are like goldfish will do exactly what they did before if they can get away with it. The government won't do anything and neither will the BOE. A second crash and austerity won't be tolerated this time though.

What 'austerity'??? There hasn't been anything remotely close - quite the opposite.

Tories targeting some soft welfare targets for headlines isn't 'austerity' - as borne out by the public sector borrowing figures and whopping trade deficits.

[Bruce Banner]

That's not how it works. They need the money from the savers to bail out those in debt. This process has now been going on for several years and enables the 1% to also take their cut. Makes you wonder why we ever had base rates above 0.5% for all those hundreds of years; today we have the strongest GDP growth in Europe, more people working than ever before, falling unemployment, inflation under control, rampant HPI .... haven't missed anything important have i???

Liabilities?

[dances with sheeple]

Debt peril eh, well no sh1t sherlock. But only for the few that did it to themselves after enjoying a lifestyle they never could have dreamed of otherwise.

I think the fears are overblown too, only a third of households have mortgages. Those that are up the creek deserve to be and should be shaken from the system and into a lifestyle they can afford, and whats wrong with that?

They were lucky to have got away with it for so long. The bill still wants paying and its about time those sat at the table stuffing their faces stumped up for it instead of everyone else who never set foot in the restaurant.

The third with low or no mortgage will in many cases have MEWed themselves sensless, and the renters, owners and mortgage holders will in most cases have card debt etc? Most people in the UK are debt sheep it seems, where they fell on the Housing Ponzi Lucky/Unlucky scale is just an accident of birth? There will be fallout, that is why the PTB are still trying to spin the plates, if it was just a few recent buyers getting shafted the plug would have been pulled long ago but the whole UK economy is based on sentiment around house prices it seems.

[dances with sheeple]

And yet Kingfisher's share price fell 8% this morning because of poor sales at B&Q.

Ouch. Another Red Flag on the future of UK property?

[The Masked Tulip]

Will you be taken prisoner by your mortgage?

Read more: http://www.dailymail.co.uk/news/article-2703929/Will-taken-prisoner-mortgage-Report-warns-rate-rise-leave-800-000-trapped-bad-deals.html

Edited July 24, 2014 by The Masked Tulip