- Location
- Lincolnshire
No. Reckless spending is the only way to get any growth. See comments above about not taking the free government money. There are no prizes for running in the opposite direction to the herd.
Bank of England
- Thread starter nelly55
- Start date
Others should do the right thing however I don’t blame them.
Those who started Ltd companies, the loans then disappeared should be hunted down.
lloyd
Member
- Location
- Herefordshire
Have to disagree too many heroes atm bring on 15%.
Martyn
Member
- Location
- South west
If it makes you feel better, we invested the bbl into livestock and in the years since continuous grown, very helped by the bbl, we will of paid excess of twice the value of our BBl in the last couple of months back in tax.
- Location
- Lincolnshire
I can see the small line of cash-rich pensioners rubbing their hands with glee at high savings rates, while the country fails. Noone wants that. Very few want current rates. Not when both parties have come out to say the country is forked if we dont get some economic growth.
lloyd
Member
- Location
- Herefordshire
Except for those cash rich pensioners had 15 years of virtually zero interest
on their hard saved money.At the moment there is a balance that should suit both
borrowers and savers.
- Location
- Lincolnshire
No, the long term balance for growth, inflation and savings rates is more like 3%. Plus margin for borrowers. There is debate as to if wealth from retiring early on final salaries, or benefitting from house price growth qualifies as "hard earned".
The bad news for cash rich / asset rich pensioners, is that they are the only folk left with any money to tax.
The bad news for cash rich / asset rich pensioners, is that they are the only folk left with any money to tax.
Headless chicken
Member
- Location
- West Wales
Disagree slightly but unsure how we get out of said mess.
sweeping statement is that people who have money are 50+ bought a house when prices relative to income were sensible paid high interest on the borrowing but drastically smaller amounts.
Property value and interest rates go hand in hand but no one can afford for the property prices to now fall. Interest rates at their current level are at a higher equivalent level than the 15% of the 1980’s.
The biggest issue is we now don’t make anything which means we can’t create any wealth just transfer and add our small percentage on top. That just leaves house building to attempt to create wealth hence the prices go up stupid
lloyd
Member
- Location
- Herefordshire
Not all pensioners were public employees retiring on final salary pensions.
As you know interest rates in modern times hit high teens so we are no where near
those type of crippling rates.
You could suggest that if a business can not pass a stress test at the present bank rates then
it has over exposed itself and should trim its exposure ie sell some assets.
I can tell you now house building is being regulated to the point it is becoming difficult to deliver affordable homes. The whole country is bogged down in red tape to the point you can’t get anything done, and that is before all the ‘net zero’ stuff properly kicks in!
lloyd
Member
- Location
- Herefordshire
I know plenty of young people priced out of the market around here
who have saved deposits.I'm sure a property crash would be an opportunity for
some of them.Lets face it ridiculously low rates allowed landlords to buy multiple buy to let houses displacing
first time buyers.
Tubbylew
Member
- Location
- Herefordshire
Both parties have abandoned manufacturing, a man can't pull himself up by his own boot laces, neither can a country, if they want economic growth they need to encourage productive industry not this never ending services circle jerk.
livestock 1
Member
I think what we have to look at is we had very low rates for years probably after 2009 till recently which everyone got used to. The low rates have an effect on purchase prices set on goods how borrowing facilities are structured and every part of economic trading conditions we are In including up to this day. That includes profit percentages tax and all the rest. Throw in 11? Consecutive rate rises then all that goes out of the window. Banks get shakey so put their margins up on existing rates charges and serviceability requirements. That leaves a lot of people paying many times the interest that they were paying and the average Jo Bloggs who has responsibility borrowed at least 3 or 4 times what he was paying. Meanwhile the businesses which aren’t going forward stood still or in reverse sit back and watch while the productive businesses get a hard time usually the ones paying the most tax which then in turn knackers the economy.
Looking back rates were too low for too long but that doesn’t mean all the consecutive rate rises have been a good idea. Business needs time to adapt. High inflation for all these years means any purchases are much more than they previously were so rate rises hurt on anything significant compared to the 80’s
Looking back rates were too low for too long but that doesn’t mean all the consecutive rate rises have been a good idea. Business needs time to adapt. High inflation for all these years means any purchases are much more than they previously were so rate rises hurt on anything significant compared to the 80’s
Bossfarmer
Member
- Location
- between Perth and Inverness
am i right in saying most banks are offering around 5% for savings now? 4 % if you want easy access
livestock 1
Member
Yes it’s pathetic
d williams
Member
You’d be lucky to get 5 on a serious amount of money without tying it up for a while
Getting 6 on small amounts with online banking
3/4 %will be more like the average
The need for low gilt auction rates has not gone away.
There are few options available for a socialist entitlement culture, other than artificial credit conditions.
SilliamWhale
Member
They have to put their money elsewhere then, because the 15% thing is not remotely desireable for the masses.
SilliamWhale
Member
The level of debt was markedly different back then.
15% on 50k house is not the same as 15% on a 350k house
SilliamWhale
Member
And stupid stupid ideas like Net zero are putting a lid on manufacturing very early on.