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zugzwang

Dave: I Want Interest Rates To Stay At Rock Bottom Forever

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Perpetual emergency? Sounds about right.

David Cameron has said it would be "lovely" for interest rates to remain at historic lows "forever" because it will allow families “to buy the homes they can afford”.

The Prime Minister said that Britain’s low interest rates are “good news” because it has made owning a home more affordable.

He agreed with a voter who told him that a rise in rates could make life “very hard” for homeowners.

Mr Cameron pointed out that he has no power over setting interest rates and joked that he finds the independence of the Bank of England “annoying”.

However, he made clear that going back to a time where politicians could set rates would be “disastrous”.

At a question and answer session with call centre workers in Runcorn, Cheshire, Mr Cameron said he agreed with one woman who said she feared a rise in the Bank of England base rate would leave people "in trouble" and make life "very hard" for homeowners.

The Prime Minister replied: "I agree. The Bank of England is totally independent. I can't tell them what to do. That's annoying, obviously, but it would be lovely to say can we have low interest rates forever.

"But it would be disastrous if I could tell them what to do, because politicians interfering in interest rates is not a good thing. You want to make sure the Bank of England sets interest rates to keep the economy on an even keel, keep inflation low and all the rest of it. But the good news is interest rates are low and that's helped people to buy the homes they can afford."

He added that new mandatory checks on people's ability to pay a mortgage in the event of a rate rise, introduced by Mark Carney, the Governor of the Bank, were "quite tough".

http://www.telegraph.co.uk/finance/personalfinance/interest-rates/11199833/David-Cameron-I-want-interest-rates-to-stay-at-rock-bottom-for-ever.html

cameron_3089609b.jpg

Edited by zugzwang

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Wow.... can a PM really be this clueless?! Agreeing with a voter is one thing but saying that low rates are making homes more affordable? (I guess that means that if rates go up, homes will be less affordable! Oh silly me, Dave will just pop in HTB3, 4 , 5, 6....etc) ..... just wow..

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There you have it....Free Market estate agent u-turn ( my stomach) Dave wants workers and savers punished so the rich ( his mates ) can keep their asset prices high and enjoy their untaxed unearned equity at the expense of your taxed earned money.

This man should be in prison, not in downing street.

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Worst. PM. Ever.

And to think he followed the (then) worst PM ever.

Not forgetting the one before Gordon and the one before BLiar, Job Snatcher etc etc.. There's a pattern forming. Edited by PopGun

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Worst. PM. Ever.

And to think he followed the (then) worst PM ever.

True, and the next one will be worse than Cameron. We haven't hit rock bottom yet.

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Hah, forget it he is just winding us up in his last few months as PM.

He can wish for whatever he want's but he does not control interest rates. Interest rates are the inverse of the total level of debt, as debt clims exponentially interest rates tend towards zero - until it breaks.

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Haha, he's showing his economic ineptitude.

Interest rates and house building, two themes which are deliberately twisted by the MSM to hide the truth from the public.

The house builders won't build affordable homes so no matter how many new homes a thrown up housing will be unaffordable for many.

Its the price that a bank agrees to lend on a home that determines whether affordability, NOT the interest on those payments, hence the MMR rules.

He really is a muppet.

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Worst. PM. Ever.

And to think he followed the (then) worst PM ever.

Only 6 months to go now.

It is the moral duty of anyone who cares, to not only use their own vote, but also to influence as many people they can to vote this joker and his career politician mates out.

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TBH I would love interest rates to stay where where they are. If you have held assets and not cash the last 7 years have been brilliant.

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TBH I would love interest rates to stay where where they are. If you have held assets and not cash the last 7 years have been brilliant.

7 years ago base rate was 5.5% and we were able to get 6 or 7% on our savings.

Even with the base rate at 0.5%, which it has been for over 5 years, it was still possible to get 3 or 4% on savings until these jokers introduced "Funding for Lending" in July 2012.

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Worst. PM. Ever.

And to think he followed the (then) worst PM ever.

I detest Brown for what he did to the housing market and then boasting about they made housing more unaffordable. But after 5 years of Dave and Osborne and their fiddling with the housing market, that was specifically designed to try and cause a 'feel good' house price bubble just before the election, I'm almost prepared to say "come back Gordon all is forgiven" :unsure:

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As were the 7 years before that....

Yet the VI go on about spreading the pain, when younger people trying to save deposits have bee/are mostly saving to cash balances, in my opinion/experience.

Is that why you get so worked up that Equity Release is expensive? Woe the would-be inheritor of a £1m house if their parents take out £100K equity release. It's expensive for a reason.

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Haha, he's showing his economic ineptitude.

Interest rates and house building, two themes which are deliberately twisted by the MSM to hide the truth from the public.

The house builders won't build affordable homes so no matter how many new homes a thrown up housing will be unaffordable for many.

Its the price that a bank agrees to lend on a home that determines whether affordability, NOT the interest on those payments, hence the MMR rules.

He really is a muppet.

he is saying mortgages will remain at x ratio to incomes...the price is irrelevant as you arent buying a house at a price, you are paying a monthly price for the mortgage.

Being a bankers fagg, he is clearly putting the case for keeping this "industry" alive.

Edited by Bloo Loo

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he is saying mortgages will remain at x ratio to incomes...the price is irrelevant as you arent buying a house at a price, you are paying a monthly price for the mortgage.

Being a bankers fagg, he is clearly putting the case for keeping this "industry" alive.

In other words, renting forever from the bank.

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TBH I would love interest rates to stay where where they are. If you have held assets and not cash the last 7 years have been brilliant.

on paper.

And if this continues, when is a time to get out..because, the moment you do, you are losing.

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on paper.

And if this continues, when is a time to get out..because, the moment you do, you are losing.

Apparently the only people who are victims, and who 'don't know what they're doing', are the ones who pile in to assets/house prices at ever higher silly prices.

Get out? It's a party in assets. Never-ending party.

I have quite the opposite view. Returns on cash are so low who would want to hold cash. I understand that the FTSE 100 is yielding some where between 3-4% this beats cash hands down.

It seem strange that we have opposite views and yet we have both made money. I'm up just over 3% in the last month.

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