Mortgage rates / interest etc

[Spectric]

The problem today is that people want everything now, just buy it and accept the debt without fully understanding their finances or even longer term employment situation rather than only buying what is within their financial ability, in other words you might not have everything today but will have to at least save up for it or reduce outstanding debt. Any of us that are of that age will recal that many newly weds would happily accept secondhand furniture and such to get started and credit was not something so happily accepted because people were happy to work for it and you did not want to be in debt.

 

[julianf]

That was also the case back in the eighties,

I can't say for sure, but I suspect that with the greater general awareness of what goes on now, the population might get a little feisty.

If you push a population too far it upsets them. If they can find someone to lash out at, they will.

I'm not convinced a government would risk that happening.

 

[Jameshow]

So it just serves them right? You sound quite pleased!
That's one point of view, but doesn't help at all with the housing situation.
Are not the reckless lenders equally or more to blame? - they are supposed to be the financial experts and they knew of the risks.

On one hand your worried about the housing situation....whilst on the other hand you want to welcome every Albanian who wants to come here!

Ironic I'd say?

 

[Adam W.]

What's wrong with Albanians ?

 

[julianf]

What's wrong with Albanians ?

They "can't swim, they attract enemy radar, they attract sharks, they nudge people when they're trying to shoot, they always insist on sitting at The Captain's Table"

 

[Jacob]

On one hand your worried about the housing situation....whilst on the other hand you want to welcome every Albanian who wants to come here!

Ironic I'd say?

Govt figures: "....this year, 7,627 Albanians (year-ending June 2022) claimed asylum in the UK, ....."
Not many. Why are you frightened of Albanians?

 

[deema]

From the BBC web site
‘Three decades after the collapse of Enver Hoxha's dictatorship and the opening of Albania's borders, about 60% of the country's adult population wanted to leave, according to a Gallup poll published in December 2018.’

‘Albanians make up one of the largest foreign-national groups in prisons across England and Wales.’

 

[Jameshow]

Nothing wrong with Albanians at all except they all want to come here, fleeing from modern day slavery!

 

[Jacob]

The problem today is that people want everything now, just buy it and accept the debt without fully understanding their finances or even longer term employment situation rather than only buying what is within their financial ability, in other words you might not have everything today but will have to at least save up for it or reduce outstanding debt. Any of us that are of that age will recal that many newly weds would happily accept secondhand furniture and such to get started and credit was not something so happily accepted because people were happy to work for it and you did not want to be in debt.

Maybe they believed electioneering promises, particularly over brexit, that everything was going to be marvellous, and they thought a low interest mortgage wasn't too risky?

 

[Jacob]

Nothing wrong with Albanians at all except they all want to come here, fleeing from modern day slavery!

Govt figures: "....this year, 7,627 Albanians (year-ending June 2022) claimed asylum in the UK, ....."
Not many.

 

[julianf]

From the BBC web site
Three decades after the collapse of Enver Hoxha's dictatorship and the opening of Albania's borders, about 60% of the country's adult population wanted to leave, according to a Gallup poll published in December 2018.

I read your post and my instant thought was how similar it was to the infamous "breaking point" poster.

 

[Cordy]

Interest rates and investments; does anyone know of any fairly safe Bonds to invest in?
Probably for 12 months circa £50K
A decent bond that we know of is with Nationwide B/S which is 4% for 12 months

Just wondering if there is anything else out there. We already have lots of Premium Bonds
We don't want to pay brokerage or commissions
Any sensible suggestions much appreciated

 

[D_W]

There are a lot of bonds in the US offering in the 6% range for 6 months, but I don't know how that would work for foreign investors. There'd be plenty of currency risk in something like that if you're able to get it in the first place.

 

[D_W]

I think, maybe, my language has confused my point.

I have probably said "got" a few times, implying that my concern is who initial "got" the funds, whilst that is in the past, and what is of concern right now is who has "got" the funds now. Again, my comment, time and time again, is to money not just vanishing. To say "but it was spent" etc. is focusing on what was, rather what is. The marbles were flung out by whatever method, and they did not just vanish again. They are still about. And, if you don't have them (right now) then someone else does.

As you say in your second post, if there is a subsequent scarcity of resources, that additional money supply is chasing those limited resources, and fuelling inflation. There was no significant scarcity of resources after 2008, so QE bolstered the asset market which is largely ignored in inflation figures. Did the money "trickle down" to increase aggregate demand at lower levels? The data suggests that it did not, so a period of low inflation, low interest rates.

But now the "double whammy" that you mention - increased money supply at the levels of wealth that like to "invest" additional funds AND a reduction of goods available to be consumed by the lower levels of the wealth spectrum. So inflation.

If interest rates rise too far in relation to wages, we will, of course, see issues in mortgage defaults. But i doubt that will actually affect house prices as much as the recessions toward the end of the last centaury, as there is that much more money sloshing about high up the wealth scale, looking for assets.

Time will tell, i guess.

This fascination with blaming someone other than fools who spent their incentive dollars and gave them someone else is very humorous. As if there was some big conspiracy to give money directly to poor people so that rich people could trick them out of it.

Why are you trying to defend QE as a relevant comparison to private money spending by individuals?

 

[Jacob]

Albanians getting peed off about the childish blame games:
https://www.intellinews.com/albania...lbanian-migrants-for-its-own-failures-261262/

 

[John Brown]

We didn't have Albanians back in the eighties...

 

[julianf]

This fascination with blaming someone other than fools who spent their incentive dollars and gave them someone else is very humorous.

Your comment above is noteworthy.

I would like to highlight it, and encourage others consider the statement also.

 

[baldkev]

Do i win a special woodworkers prize for having a super long thread? Maybe a domino 500?

 

[D_W]

Do i win a special woodworkers prize for having a super long thread? Maybe a domino 500?

I think we might be able to get you a subsidized mortgage rate if we can get the post count to 1 million

 

[Jameshow]

Do i win a special woodworkers prize for having a super long thread? Maybe a domino 500?

No only a triton doweller!!