DOOM: Banks

[dsc]

Who knows, in the US they have really long mortgage fixes, 15 years or more. They raised rates and inflation fell back pretty quick.

In the UK it looks like we had a wage and benefits spiral. Pensions and other Benefits and Minimum wage all got 10% increases. Everyone else got around 6% (except us contractors).

More like 7% excluding bonuses (Feb to April 23), so again, best of luck trying to tame inflation.

[vetran]

More like 7% excluding bonuses (Feb to April 23), so again, best of luck trying to tame inflation.

Speak for yourself I am struggling by on 11% raise this year.

[SueEllen]

With most people on fixed rates, interest rates don't work as well, as a lever, for the BoE as they used to a few decades ago.

When interest rates were put up in the late 80s, it had an immediate effect. Now its a slow motion car crash.

There is a minimum of an 18 month lead on interest rate rises. So the BoE is going to over shoot if they keep raising interest rates.

[AtW]

Perhaps the margins to which banks are 'entitled' are higher now?

This too, plus lots of branch closures - my (posh) local area had 5-6 bank branches, now only 1.

[AtW]

Who knows, in the US they have really long mortgage fixes, 15 years or more. They raised rates and inflation fell back pretty quick..

They’d use equally long financing for those mortgages - backed by underlying security too, so less of a problem. But UK banks found a new way in banking - long term fix to earn money funded by short term funding, albeit from what they consider is a “captive audience”

[jamesbrown]

my (posh) local area

Do they serve a salad with the kebabs now?

[sadkingbilly]

Do they serve a salad with the kebabs now?

quinoa salad

[AtW]

Do they serve a salad with the kebabs now?

It’s a paid extra now - welcome to Tory Scum deflation…

[northernladuk]

Fine by me. Feel free to hammer mortgage holders even more

Word.

[vetran]

It’s a paid extra now - welcome to Tory Scum deflation…

Well you are choosy about the kebab composition what do you expect?

http://www.grouprecipes.com/84745/ch...rel-kebab.html