Jump to content
House Price Crash Forum
Sign in to follow this  
Ash4781

Further Rate Rise Feared As Shoppers Keep Buying

Recommended Posts

why don’t they just say in a new broadcast

"we ask the nation to spend less this quarter due to inflationary pressure, if we are able to spend less then we can keep inflation low and will not need to raise rates"

that would surely get a good amount of people to postpone or comply stop un-necessary spending?

Share this post


Link to post
Share on other sites

My personal experience, I run an online retailer, is that sales were flying over the last month. In fact, I made more in the last month than the previous two months combined. So, just as I started counting my chickens (as you do when the money rolls in), the MPC met and raised rates. This has killed my sales stone dead, the plumeted THE NEXT DAY! Seriously, Im selling nothing of value. If this was my main source of income id be sh*tting it right now.

Remember these reports are retrospective - most refer to June trade before the latest rise. I think you'll see a few high street names going to the wall in the not so distant future as reality hits.

Edited by mrphil

Share this post


Link to post
Share on other sites
Guest Popalot
why don’t they just say in a new broadcast

"we ask the nation to spend less this quarter due to inflationary pressure, if we are able to spend less then we can keep inflation low and will not need to raise rates"

that would surely get a good amount of people to postpone or comply stop un-necessary spending?

I often think that would be more simple! However, we all know that a lot of the sheeple are now trapped into massive debt repayment which is showing up in the "spending" figures - ie disposable income being spent on mortgages etc, servicing the 1.35trillion. I think they just feel "what's £150 more when you are £20k in debt on the credit cards....." This is the mentality for disaster.

Also, the British public would sell their grandmothers to buy stuff in a sale - it is incredible.....warped logic, but they all want something for nothing even if it continues to rack up the storecard.

Share this post


Link to post
Share on other sites
My personal experience, I run an online retailer, is that sales were flying over the last month. In fact, I made more in the last month than the previous two months combined. So, just as I started counting my chickens (as you do when the money rolls in), the MPC met and raised rates. This has killed my sales stone dead, the plumeted THE NEXT DAY! Seriously, Im selling nothing of value. If this was my main source of income id be sh*tting it right now.

Remember these reports are retrospective - most refer to June trade before the latest rise. I think you'll see a few high street names going to the wall in the not so distant future as reality hits.

I'm sure I read a while back that HMV was the most shorted share on the FTSE

Have Debenhams been re-floated ?

Share this post


Link to post
Share on other sites
I'm sure I read a while back that HMV was the most shorted share on the FTSE

That's because they are a rip off. Mind you they are busier (at least in my local HMV) than Virgin, who are a MEGA rip off!

Edited by OzzMosiz

Share this post


Link to post
Share on other sites

I think this is a clash of press releases here, so no proper news or in depth reporting. For the first link is a cut and past job from a press release from Global Insight.

In the second, the BBC has done the usual "cut and paste" a press release from M&S. There a bit's of gossip at the bottom about George Davis to make it look like proper news.

Share this post


Link to post
Share on other sites
How do interst rate rises affect retail sales? Ok, people have to pay more on their mortgage so less disposable stuff, but if you are buying on credit then you are already paying a stupid rate, so what difference does a percent make?

If the demand's being driven by housing related dent does the Bank have to crash housing to bring inflation under control ?

Edited by Ash4781

Share this post


Link to post
Share on other sites
If the demand's being driven by housing related dent does the Bank have to crash housing to bring inflation under control ?

If house prices are slowing, so is the amount people can MEW. Since your average punter just squanders his MEW-money in a short space of time, any downturn in the property market would have a significant effect on retail. HPC seems like a comprehensive way of solving the inflation problem. Get that base rate punted up!!

Share this post


Link to post
Share on other sites
but if you are buying on credit then you are already paying a stupid rate, so what difference does a percent make?

Gets them nearer to their ultimate credit limit beyond which they default or the lenders stop shovelling cash at them cause they think default is about to occur.

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.

  • 354 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.