Jump to content
House Price Crash Forum
Sign in to follow this  
Greenback

Augest 06 Bank Rate Rise

Recommended Posts

Following yesterdays 0.25% hike in the bank rate, I feel I must express a long held belief that the Government, City and a fair percentage of the population of our great nation have s**t for brains.

March 1990 mortgage rates were over 15%. Why does nobody seem to remember that? I work with people who are old enough to remember but need to be shown the facts before they are prepared a accept it happened in this dimension. They still think I'm a bit strange for being interested. This denial seems to afflict leaders of Government and Industry also. I feel sure most have the intelligence to take note of history, but still they promote policies for short term gain that take no account of the future of the nation. Wilson, Thatcher & Blair spring instantly to mind.

Those deserving special mention are anyone involved in finance, professional or investor. Apparently, the city was shocked by yesterdays unexpected rate rise and the market plunged in response. This is like crossing a motorway blindfolded and acting surprised when a lorry hits you. Considering the rate rise was signalled with a megaphone for some months, I find it hard to accept any but the dead were unprepared. Luckily, I pulled my pennies out of the market before the last correction. At the time I concluded my investments were in the hands of a bunch of monkeys and the passing of time has not changed my opinion.

And now for the general population. £1 trillion of debt! Need I say more? Life's one long Friday night for some people.

So what does this have to do with the price of houses anyway? Rather a lot I believe. Look at bank rates of other nations. Bit higher than ours and the result of rising commodity/energy costs = inflation. Take a look at America. Massive consumer debt, deflating property bubble, bankrupt auto industry. Basically a debtor nation. Now look at Britain. Massive consumer debt, property bubble ready to deflate, foreign owned auto industry. Basically not a debtor nation but just as exposed to inflation as the US. Cheap debt got us into this situation of spiraling property values and inflation will get us out as overstretched debtors go to the wall. Too bad so many need to suffer before we reach the bottom but nobody made them take the loans. The interests of the few will be served by the suffereing of the many. Make sure you are one of the few.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.