Reply to: BoE's Carney says base rate rise is 'moving closer'

[Zero Liability]

It's a bit like reading tea leaves, only less scientific:

MPC votes eight to one to hold Bank Base Rate at 0.5% - Mortgage Solutions

[OwlHoot]

Deflation fears, print money, hold interest rates at zero.
Inflation fears, print money, hold interest rates at zero.

Can you see a pattern emerging?

UK rates will follow the US FED's rates, so let's see if a pattern can be discerned for those :



Yes, one can just about make it out ..

[Zero Liability]

I wonder if the US government will indict itself in the process. That was a purely vindictive move on their part.

Isn't Moody the same agency that rates triple Tulipe CDOs as AAA with bells on?

They're a creation of bad government policy. Rate their opinions accordingly.

Nonetheless, had the CRAs diverged much from what was very much "received wisdom" on part of regulators, banks, university finance departments etc., they'd be ignored or worse, laughed out of the room. You can see this now even, where there is a phalanx of talking heads ready to play up even the most tepid of news and play down any sign of distress in markets. Especially the Chinese stock market meltdown.

[DimPrawn]

Justice Department Investigating Moody

[AtW]

Latest report from Moody's

"Borrowers will be able to handle base rate increase"

Moody's: Borrowers will be able to handle base rate increase | News | Mortgage Strategy

Isn't Moody the same agency that rates triple Tulipe CDOs as AAA with bells on?

[Martin@AS Financial]

Latest report from Moody's

"Borrowers will be able to handle base rate increase"

Moody's: Borrowers will be able to handle base rate increase | News | Mortgage Strategy

[PurpleGorilla]

Deflation fears, print money, hold interest rates at zero.
Inflation fears, print money, hold interest rates at zero.

Can you see a pattern emerging?

Despite being a crowded island, Japan had a 15 year house price crash when deflation kicked in.

Bring it on baby [emoji12]

[DimPrawn]

Inflation fears led MPC to hold base rate:

Inflation fears led MPC to hold base rate | News | Mortgage Strategy

Deflation fears, print money, hold interest rates at zero.
Inflation fears, print money, hold interest rates at zero.

Can you see a pattern emerging?

[Martin@AS Financial]

Inflation fears led MPC to hold base rate:

Inflation fears led MPC to hold base rate | News | Mortgage Strategy

[DimPrawn]

I've doubled my monthly income by loading up everything on interest free credit cards and then spending all the money as normal. It's frickin great I get to spend my money twice.

Let the stupid savers pick up the cost of all this loverly interest free, freshly printed moolah!

Spend, spend, spend!

0% Balance Transfer Fee - Credit Cards - Tesco Bank

[OwlHoot]

2015-07-21 Three Huge Reasons Why the Fed Cannot Let Rates Normalize

and where the Fed goes (or doesn't), we in the UK pretty much follow (or don't), like a tug boat hitched to an aircraft carrier

[Martin@AS Financial]

Got sent this article this morning - Apologies for the rough cut and paste job:


Bank of England governor Mark Carney has warned that the end of the year could see a sharp rise in the number of tedious conversations about mortgages.

With interest rates having remained stable and low since the financial crisis, tedious mortgage-based conversations have not been something most people have had to worry about.

Carney explained, “There are people out there today who have never been subjected to an hour-long tale about one couple’s tiresome hunt to find a reasonable capital repayment mortgage.”

“They seem to think that mortgage-free conversations have become the norm, and I’m warning today that this is not the case.”

“By the end of the year we could see soul-destroyingly boring conversations about massive financial products possibly doubling, and reaching a level four times what they are today by 2017/18.”

“People need to prepare for that, and if that means saving up a few humorous anecdotes of your own to counter-act the effects, then so be it.”

Mortgage conversation rates

Home-owner Tarquin Rufus-Smythe said he wasn’t sure he could handle the coming rise.
He told us, “I remember back in the nineties when mortgage conversations were ten times the rate that they are today. It was horrific.”

“You literally couldn’t buy a loaf of bread without someone explaining to you about their fruitless search for a two-year fixed-term rate that wasn’t at least a couple of digits above base rate.”

“It makes me weep just to think about it.”

“God help us all.”

[AtW]

Oh yeah, you may have missed the property gravy train by a country mile, but by feck did you (eventually) get a good deal on that sofa!!

You want to buy a lightly used sofa?

No credit outstanding on it...

[Zero Liability]

The CPI, which excludes housing, has flatlined. Whether that means prices in general have, or for that matter monetary supply inflation (which can cause price inflation), is another topic entirely.

[WordIsBond]

In golden Gordon Brown years inflation was under control

Yeah. He kept inflation under control with high taxes. But at least it was reasonably under control.

His years were indeed golden for those to whom he sold the gold, just before running up the deficit (in good years), which of course drove the gold price higher. And of course, the cupboard was bare when a crisis hit -- instead of running a surplus in good years so you have a reserve when needed, he ran a deficit.

Those were indeed golden years.