Jump to content
House Price Crash Forum
interestrateripoff

Homeowners Could Face Early Rise In Interest Rates If Ed Miliband Is Propped Up By The Snp, Warn Morgan Stanley

Recommended Posts

http://www.dailymail.co.uk/news/article-3049376/Homeowners-face-early-rise-rates-Ed-Miliband-propped-SNP-warn-Morgan-Stanley.html

Homeowners could face an early rise in interest rates if Ed Miliband is propped up in Downing Street by the SNP, a major bank warned last night.

US giant Morgan Stanley said the prospect of a Labour government reliant on the Scottish Nationalists would create the ‘greatest uncertainty’ of any election result.

Its inevitable ‘anti-austerity’ agenda could lead to an ‘earlier bank rate hike than was previously the case’, the bank argued.

Last night, a second major bank, Goldman Sachs, also raised concerns about the same outcome on May 7.

Goldman said Labour would be ‘dragged to the Left’ by the SNP, which would result in even more money going north of the border ‘at the expense of the UK as a whole’.

It warned that Labour would be then expected to abandon its pledge to manage the public finances carefully.

How nice of the Wall Street banks to offer advice.

Share this post


Link to post
Share on other sites

At any point have they considered the social costs of locking several generations out of reasonably priced housing due to a rigged market? No? Ah, OK, f#ck em.

Share this post


Link to post
Share on other sites

Low interest rates are one of the top grumbles of pensioners - might be a vote winner for Labour?

I tend to think doing the opposite of whatever Goldman Sachs, Morgan Stanley and the rest say is the best course of action.

Edited by mattyboy1973

Share this post


Link to post
Share on other sites

Low interest rates are one of the top grumbles of pensioners - might be a vote winner for Labour?

I tend to think doing the opposite of whatever Goldman Sachs, Morgan Stanley and the rest say is the best course of action.

:-)

Share this post


Link to post
Share on other sites

Low interest rates are one of the top grumbles of pensioners - might be a vote winner for Labour?

I tend to think doing the opposite of whatever Goldman Sachs, Morgan Stanley and the rest say is the best course of action.

...ONLY thing is I don't like Ed :rolleyes:

Share this post


Link to post
Share on other sites

EDIT!

Why can't you edit posts when written ?

Low interest rates are one of the top grumbles of pensioners - might be a vote winner for Labour?

I tend to think doing the opposite of whatever Goldman Sachs, Morgan Stanley and the rest say is the best course of action.

CORRECT...ONLY thing is I don't like Ed :rolleyes:

Anyways, I seriously think if Ed got in then we'd have a housing blood bath collapse for SURE.... B)

Share this post


Link to post
Share on other sites

I've said it several times here, if you guys truly want a HPC, you should be praying for a divine miracle and a Green party majority. Barring that, the best bet is a Labour + SNP coalition because I believe markets will turn against UK bonds once the government ramp up spending again and do away with the austerity narrative.

Share this post


Link to post
Share on other sites

I know this sounds like pure semantics, but the point bears making every time.

Homeowners have nothing to fear from a rate rise. Mortgage debtors have everything to fear from a rate rise. The Mail know this perfectly well, yet choose to continue with the line about homeowners being subject to this.

It's not an error, IMO, it's deliberate on their part.

Share this post


Link to post
Share on other sites

The thing about interest rates is that they are at historic, "emergency" lows of 0.5%. The idea that this is some kind of "success" of the current government is laughable - it's a failure and indicates quite clearly that the economy is stuffed. You might as well say that 17% interest rates were a success of the government of the day (just think of the savers!).

The fact that we have however many million semi-zombie households who would be stuffed if interest rates rose at all is the problem here. The sooner they get flushed out and things get back on a more normal footing, the better.

The fact is that low interest rates are doing nothing to stimulate demand any more, they are simply blowing asset bubbles. Who knows - perhaps we'd get higher inflation with higher rates now?

Edited by mattyboy1973

Share this post


Link to post
Share on other sites

Better to have a Labour/SNP government than pure Labour. They would just follow the same path as Blair/Brown. With the SNP we might get some more real left wing policies rather than red Tories.

Share this post


Link to post
Share on other sites

I've said it several times here, if you guys truly want a HPC, you should be praying for a divine miracle and a Green party majority. Barring that, the best bet is a Labour + SNP coalition because I believe markets will turn against UK bonds once the government ramp up spending again and do away with the austerity narrative.

I think you mean when the UK carries on spending like it has been and stops the pretence of austerity.

Share this post


Link to post
Share on other sites

I've said it several times here, if you guys truly want a HPC, you should be praying for a divine miracle and a Green party majority. Barring that, the best bet is a Labour + SNP coalition because I believe markets will turn against UK bonds once the government ramp up spending again and do away with the austerity narrative.

There's no need for the Greens. The new Labour/SNP coalition will be perfectly adequate at crashing the economy and taking out the housing market along with it. Too bad they're completely devoid of ideas for how they're going to replace the housing bubble as the driver of the UK economy.

Share this post


Link to post
Share on other sites

There's no need for the Greens. The new Labour/SNP coalition will be perfectly adequate at crashing the economy and taking out the housing market along with it. Too bad they're completely devoid of ideas for how they're going to replace the housing bubble as the driver of the UK economy.

They could do a mass social house building project which would create hundreds of thousands of jobs, create millions of income generating assets for the country and reduce the housing benefit bill for one.

Share this post


Link to post
Share on other sites

There's no need for the Greens. The new Labour/SNP coalition will be perfectly adequate at crashing the economy and taking out the housing market along with it. Too bad they're completely devoid of ideas for how they're going to replace the housing bubble as the driver of the UK economy.

  • Strip away private banks ability to create money out of nothing would be a start. They create 97% of the UK money supply, and less than 10% of that goes into businesses. The rest goes in housing/ financial markets/credit cards.
  • Allow the free market to seek fair value
  • Take banks back to their original purpose: A intermediary for savers and lenders.
  • GBP value has declined by 90% since coming off gold standard in 1913ish. Back to a proper, not fiat currency. Gold/silver possibly?
  • Properly back businesses
  • Have a proper review of whether selling off entire industries was a good idea. If not, bring back a proper 'march of the makers'

Thoughts?

Share this post


Link to post
Share on other sites

They could do a mass social house building project which would create hundreds of thousands of jobs, create millions of income generating assets for the country and reduce the housing benefit bill for one.

Yeah, they could, and rather easily I should think. Of course, they also could have done this between 97 and 2010, but they didn't, and being in a squabbling coalition with a bunch of nutters intent on destroying the country isn't really going to increase the likelihood of this happening.

Share this post


Link to post
Share on other sites

Better to have a Labour/SNP government than pure Labour. They would just follow the same path as Blair/Brown. With the SNP we might get some more real left wing policies rather than red Tories.

Totally agree. I've been hoping for a labour snp progressive alliance to drive labour back to the left and thwart the blairites.

The tories, the media and now these banks are all terrified of the real left returning to power, things are going to get interesting if they do.

I suspect a media stitch up post election before a new government is formed.

They've been moving the goalposts on what definition it takes to win this election. the Tory media are saying the single largest party should form government not whoever can form a majority in some fashion.

There are 12 days after the election before a government is formed, plenty of time for a media coup.

Share this post


Link to post
Share on other sites

There's no need for the Greens. The new Labour/SNP coalition will be perfectly adequate at crashing the economy and taking out the housing market along with it. Too bad they're completely devoid of ideas for how they're going to replace the housing bubble as the driver of the UK economy.

The Greens are the only party which highlight a LVT and reform of the monetary system.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   94 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.