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May 26 2022 3.19pm

Interest rates to rise again

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View Eaglecoops's Profile Eaglecoops Flag CR3 05 May 22 10.23am Send a Private Message to Eaglecoops Add Eaglecoops as a friend

Housing market collapse incoming, you heard it here first.

After a lengthy policy of artificially keeping interest rates low to allow cheap borrowing and borderline skint householders to crawl their way onto the property market we are now seeing the circle returning to higher interest rates.

This combined with cost of living increases in every facet of life will lead to personal bankruptcies and for the first time since the last housing market crises, a load of keys will start being handed into building societies.

I am no conspiracy theorist but the worldwide situation at present does look like an amalgamation of events conspiring to transfer what little wealth the population has to the rich. There is only one winner when a market heads in this direction and that is the wealthy becoming more wealthy.

I feel for the youngsters out there, they sure ainít got a lot to look forward to.

 

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View Hrolf The Ganger's Profile Hrolf The Ganger Flag 05 May 22 10.38am Send a Private Message to Hrolf The Ganger Add Hrolf The Ganger as a friend

Yeah. The problem with that idea is that interest rates have been at a historical low for years now.
Savers have suffered as a result, but it has been better for those with mortgages.

I don't know if raising interest rates actually reduces inflation, but it is obviously better for those who have money in the bank.
I'm not sure if that constitutes a conspiracy, but it might help to slow the rise in house prices.

 

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View Rudi Hedman's Profile Rudi Hedman Flag Caterham 05 May 22 10.38am Send a Private Message to Rudi Hedman Add Rudi Hedman as a friend

I agree that many repossessions will end up either staying in the hands of bank subsidiaries or large corporations rather than going to auction etc. Itís going to take a couple of generations at least to grind wealth and capital out of people, via hefty inheritance taxes. It will happen, because of overpopulation, immigration, lack of work that earns a living, automation, you name it.

Itíll need a recession for the London housing market to drop considerably. So many people around ready to purchase.

Furlough prevented a recession and weíre overdue one, unless modern times cause certain industry employees to go under.

Itís questionable how raising interest rates is going to solve matters now with cost push inflation in necessities rather than demand pull inflation, but itís going to sting for a while - therefore perhaps maybe the housing market prices stagnating?

 


COYP

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View W12's Profile W12 Online 05 May 22 11.08am Send a Private Message to W12 Add W12 as a friend

It's not just the housing prices.

World supply chain is breaking down due to COVID measures, government policy and war in Ukraine and we are at the very end of the current financial system. Expect food and fuel shortages, power supply issues and probably civil unrest off the back of that.

The Fed (Federal Reserve) have a choice now to raise interest rates which will blow up the bond market and crash the stock market or continue to debase the dollar which is the world reserve currency increasing inflation and causing hyper inflation.

When it all blows up the same people that caused all this will offer you the solution which will come with significant terms and conditions.

I would urge people to prepare.

 

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View Palace Old Geezer's Profile Palace Old Geezer Online Flag Midhurst 05 May 22 11.29am Send a Private Message to Palace Old Geezer Add Palace Old Geezer as a friend

When interest rates go up, which inevitably they must, there's always talk about rising cost of mortgages, credit card repayments, loans etc.

Very rarely do increases result in announcements about 'good news for savers'. Us old pensioner types with a few bob in savings accounts have suffered for years. The money we worked hard to accumulate is worth less in real terms than it was, say 10 years ago.

Our first mortgage was repaid at a rate of 13%. Admittedly the house cost only £6,100, but it's all relative, I think my salary was £1,200 pa. Interest rates have reduced dramatically over the years.

Tough though it is for many people nowadays, there's been too much easy money available for a long time.

 


Dad and I watched games standing on the muddy slope of the Holmesdale Road end. He cheered and I rattled.

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View CrazyBadger's Profile CrazyBadger Online Flag Ware 05 May 22 11.33am Send a Private Message to CrazyBadger Add CrazyBadger as a friend

Originally posted by W12

It's not just the housing prices.

World supply chain is breaking down due to COVID measures, government policy and war in Ukraine and we are at the very end of the current financial system. Expect food and fuel shortages, power supply issues and probably civil unrest off the back of that.

The Fed (Federal Reserve) have a choice now to raise interest rates which will blow up the bond market and crash the stock market or continue to debase the dollar which is the world reserve currency increasing inflation and causing hyper inflation.

When it all blows up the same people that caused all this will offer you the solution which will come with significant terms and conditions.

I would urge people to prepare.

Not sure where to begin 'preparing' for this! Fixed rate mortgages? Stop buying stuff?

 

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View W12's Profile W12 Online 05 May 22 11.38am Send a Private Message to W12 Add W12 as a friend

Originally posted by CrazyBadger

Not sure where to begin 'preparing' for this! Fixed rate mortgages? Stop buying stuff?

Have spare food
Keep some fuel
Do not keep money in the bank (use it to buy or invest in real assets and/or keep some spare cash at home)
Possibly keep some gold/silver
Make sure you can protect your family
Have a plan if things go TU

 

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View W12's Profile W12 Online 05 May 22 11.39am Send a Private Message to W12 Add W12 as a friend

And definitely don't let them get away with this like they did in 2008

 

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View CrazyBadger's Profile CrazyBadger Online Flag Ware 05 May 22 11.48am Send a Private Message to CrazyBadger Add CrazyBadger as a friend

Originally posted by W12

Have spare food
Keep some fuel
Do not keep money in the bank (use it to buy or invest in real assets and/or keep some spare cash at home)
Possibly keep some gold/silver
Make sure you can protect your family
Have a plan if things go TU

So stockpile stuff. this country loves a panic buyer

Not sure how keeping money out of your bank will help though - are you expecting more banks to go under? or just that money will work better for you elsewhere?


 

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View W12's Profile W12 Online 05 May 22 11.55am Send a Private Message to W12 Add W12 as a friend

Preparing for a crisis is the exact opposite of panicking

Banking Act 2009 (just after the "bail outs" of the previous financial crisis changes your status from a "depositor" to a "creditor" meaning they can simply take your money to avoid going bust.

[Link]

So basically the last time they took your money indirectly via bail outs and this time they will just take it directly from your account.

 

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View PalazioVecchio's Profile PalazioVecchio Flag south pole 05 May 22 12.00pm Send a Private Message to PalazioVecchio Add PalazioVecchio as a friend

Originally posted by W12

Preparing for a crisis is the exact opposite of panicking

Banking Act 2009 (just after the "bail outs" of the previous financial crisis changes your status from a "depositor" to a "creditor" meaning they can simply take your money to avoid going bust.

[Link]

So basically the last time they took your money indirectly via bail outs and this time they will just take it directly from your account.

to rob directly from the bank account. That has already happened in loads of places.

 


7 points from Manchester this season

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View mezzer's Profile mezzer Flag Main Stand, Block F, Row 20 seat 1... 05 May 22 12.02pm Send a Private Message to mezzer Add mezzer as a friend

Thought our inflation was bad. Turkey have just hit 70%.

Going there in June. Kebabs are going to be twice the price by the end of the second week as they were at the start of the holiday.

[Link]

 


Living down here does have some advantages. At least you can see them cry.

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