Interest rates up 0.5%!

[Vindec]

Re: Interest rates up 0.5%!

I'm 33 now, since I've been an adult I've never known a good economy. Is this really the best we can do? The tories are economically illiterate, you're a fool if you believe otherwise.

I think you are incorrect. Interest rates and inflation have been consistently low for most of your adult life compared to say the 1970's when interest and mortgage rates were in excess of 20%.

In answer to Eric's comment - labour did not ruin the economy. It was World factors including a virtual collapse in the Banking system internationally. Labour got the blame for the financial crisis in 2008 but later detailed analyses showed that the problems experienced were due to factors completely outside their control. Again the country is in a growing financial mess due to factors outside governmental control such as COVID fallout and the war in Ukraine (which alone adds around 13% to inflation). It's going to be rough for the next few years.

[Doucas]

Re: Interest rates up 0.5%!

I think you are incorrect. Interest rates have been consistently low for most of your adult life compared t say the 1970's when interest rates were in excess of 20%.

In answer to Eric's comment - labour did not ruin the economy. It was World factors including a virtual collapse in the Banking system internationally due mainly to investment institutions purchasing financial instruments they didn't understand. Labour got the blame for the financial mess in 2008 but later detailed analyses showed that the problems experienced were due to factors completely outside their control.

I don't know why people keep bringing up this interest rate nonsense. House prices were a fraction of what they are today so it's irrelevant.

Boomers when they were the same age as millenials had about 30% of the countries wealth, millenials have about 4%..

[Vindec]

Re: Interest rates up 0.5%!

I don't know why people keep bringing up this interest rate nonsense. House prices were a fraction of what they are today so it's irrelevant.

Boomers when they were the same age as millenials had about 30% of the countries wealth, millenials have about 4%..

With interest rates 20 times higher than they are today it is not irrelevant. Where I agree with you is that house prices now are probably 10x higher than they were in the 1970's. Perhaps a better yardstick is to look at mortgage repayments in relation to house prices and salaries.

[Citizen's Nephew]

Re: Interest rates up 0.5%!

I think you are incorrect. Interest rates and inflation have been consistently low for most of your adult life compared to say the 1970's when interest and mortgage rates were in excess of 20%.

In answer to Eric's comment - labour did not ruin the economy. It was World factors including a virtual collapse in the Banking system internationally. Labour got the blame for the financial crisis in 2008 but later detailed analyses showed that the problems experienced were due to factors completely outside their control. Again the country is in a growing financial mess due to factors outside governmental control such as COVID fallout and the war in Ukraine (which alone adds around 13% to inflation). It's going to be rough for the next few years.

Labour were cringingly apologetic too. They sucked up way too much Tory propaganda and didn't fight it properly. They were weak then when it came to opposing Tory austerity.

[Vindec]

Re: Interest rates up 0.5%!

Labour were cringingly apologetic too. They sucked up way too much Tory propaganda and didn't fight it properly. They were weak then when it came to opposing Tory austerity.

Eh! The Tories didn't gain power until 2 years after the 2008 crisis; austerity came much later. I agree that was a very poor policy. We should have been expanding the economy and not reducing it. The argument that there was no money was clearly incorrect as £405bn was found to pay for COVID.

[Cleve van Leef]

Re: Interest rates up 0.5%!

There is no good news around for anyone, but you needs to look at ACTUAL data, rather than predictions.



The reality is, there is very little good news around for anyone

Apart from Shell, BP, Exxon Mobil, Centrica and all the other Oil companies.

[North Cardiff Blue]

Re: Interest rates up 0.5%!

The rich get richer and the poor get poorer. Beautiful capitalism

Unfortunately a lot of truth in that.

[Parti Mellow]

Re: Interest rates up 0.5%!

If you keep printing money, eventually inflation will come. Capitalism and not so much corporatism is the way forward out this mess.

[North Cardiff Blue]

Re: Interest rates up 0.5%!

The common theme is right wing economics.

It's a Worldwide problem of high inflation caused by locking the World down for two years, global supply issues, and of couse the war in Ukraine and the high energy costs, it's a tough time but we've been through a lot worse.

[North Cardiff Blue]

Re: Interest rates up 0.5%!

https://thinkplutus.com/uk-interest-rate-history/

[A Quiet Monkfish]

Re: Interest rates up 0.5%!

I'm 33 now, since I've been an adult I've never known a good economy. Is this really the best we can do? The tories are economically illiterate, you're a fool if you believe otherwise.

About 50% of the population of the UK are fools then. You also seemed to think anyone who doubted man-made climate change was a fool, the same with anyone who supported brexit. There's a theme running here..

[Parti Mellow]

Re: Interest rates up 0.5%!

You forgot to put Trump on that list. Anyway I don't think Brexit has happened due to the amount of times I keep hearing ECHR on the news.

[xsnaggle]

Re: Interest rates up 0.5%!

I don't know why people keep bringing up this interest rate nonsense. House prices were a fraction of what they are today so it's irrelevant.

Boomers when they were the same age as millenials had about 30% of the countries wealth, millenials have about 4%..

That's a silly remark
Houses were cheaper but so were wages lower and then you could only borrow 2.5 x salary for a mortage, plus interest rates were a lot higher. Interest rates of 11% were not unusual.
As an example when I got married in 1972 I had the opportunity to buy a 4 bedroom house for just over £10,000.00 but although I was on a good wages I couldn't afford the repayments. That same house today is worth over £1/4 million.
So people then were using a much larger percentage of their disposable income to buy a house than you have ever experienced. But as you have never known any difference you expect it to last for ever. It doesn't sadly. We all wish it would.

[A Quiet Monkfish]

Re: Interest rates up 0.5%!

That's a silly remark
Houses were cheaper but so were wages lower and then you could only borrow 2.5 x salary for a mortage, plus interest rates were a lot higher. Interest rates of 11% were not unusual.
As an example when I got married in 1972 I had the opportunity to buy a 4 bedroom house for just over £10,000.00 but although I was on a good wages I couldn't afford the repayments. That same house today is worth over £1/4 million.
So people then were using a much larger percentage of their disposable income to buy a house than you have ever experienced. But as you have never known any difference you expect it to last for ever. It doesn't sadly. We all wish it would.

In 1990 Interest rates were 15%. We were paying near 17% - plus an endowment[remember those], which was taking up over half our combined salaries - something like £1000 per month.

[xsnaggle]

Re: Interest rates up 0.5%!

In 1990 Interest rates were 15%. We were paying near 17% - plus an endowment[remember those], which was taking up over half our combined salaries - something like £1000 per month.

In addition to this income tax basic rate was 33% in 1978 reducing to 30% in '79 and allowances were a couple of grand a year depending on how many kids you had.