Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

The eye-watering mortgage debts of homeowners in their 30s and 40s means that the Bank of England cannot raise interest rates without pushing millions of people into an 'unsustainable' position, Sir Mervyn King has warned.

The outgoing Governor of the central bank last night said that many homeowners faced a debt timebomb because they had failed to use the opportunity of record low interest rates - which have stayed at 0.5 per cent since March 2009 - to reduce their mortgage debt.


savers paying to make house buyers rich while their cash loses value.
put up interest rates now .
people with mortgages are now to big to save

Tucker has warned its only months now before we see Interest rate increases. Ive been consistantly pointing this out seeing short term interest rates on the money markets increasing.

Given that the Canadian newbie at the BoE has a track record of inflating economies this may be far earlier than people think and would be a disaster for many familys in this country who have over borowed over the last 15 to 20 years or so.

People have their houseon the tick, both family cars on the tick and then a certain amount of white goods and furniture on the tick.

It will be a disaster.

This situation has occured because of the Thatcher Greed era, where the mantra became look after number 1 and forget eveybody else. At all time thou must outdo your neighbour.

goldfinger, your last sentence - that was another bad habit we got from the USA. And we will never agree to disagree on the Thatcher era! When the Labour party was in power we were all inundated with junk mail from credit card companies trying to entice us to spend money we didn't have.

King said only 2 days ago that interest rises were along way off.

gf
Get your facts right. This was 3 hours ago

http://uk.reuters.com/article/2013/06/26/uk-britain-boe-fpc-idUKBRE95P0FU20130626

The Bank itself is a long way from tightening monetary policy. Tucker reiterated comments made by outgoing Governor Mervyn King on Tuesday that an interest rate hike was not imminent, saying it would only occur once the British economy had reached "escape velocity."

Sorry to hear of your news 3m. You take it easy and get back to full health. I was only thinking you have not been around for a week or so. I send my best wishes and will catch up with you.
Ps only just got in.

Well.........

1. When does King ever get it right?????

2. This from 2 hours ago and on BBC TV page 200 news page 2........

http://www.bbc.co.uk/news/business-23061790

Paul Tucker, the Bank's deputy governor, has asked regulators to investigate the issue immediately.

I wont ask for an apology Hays as I know you arent man enought to give one.

Tucker can see what I have been seeing for the last 6 weeks or so. King is an old man whos well past it and biased towards Cameron and Osbourne imo.


Stability threat?

Mr Tucker also warned that rate rises could also threaten banks. He said there had been a "progressive search for yield", as institutions hunted for better returns.

He warned that the authorities "need to be alert to whether stability could be threatened by excessive leverage or liquidity risk building up in any potentially vulnerable parts of the financial system".

The dangers had been underlined by the sharp fall in share prices over recent weeks, he added.

3 monkies - glad to hear you are on the mend.

Stan - what a truly fascinating listen! (post 26379).

GF

Agreed.


This has been posted before.

If Porky had, in his dismal reign had as well as cutting had borrowed earlier and targeted areas of the infrastructure (not going directly into private hands) the economy would not have shrunk as much as it has done.

He is being sucked into the swamp by his on stupidity.

Pruning a tree sometimes is useful, cutting it off at its roots is often bloody stupid.

That is what he is doing.

Agreed Fred.

Capital spending on infrastructure gives far more sustained and rapid growth than does spraying weed killer on the ever returning weeds.

What do people expect from a wallpaper decorator?

What does it matter what Paul Tucker says or thinks? He's leaving anyway, but he's a bit bitter because he wanted the head honcho's job and Carney beat him to it.

You just hit the nail on the head hilary, in the space of two sentences.

I'll try to do better next time, doods, and see if I can condense it into one. :o)

You couldn't hit a DB4 on the head, due to it moving.

lets look at facts if people buy houses that they can not afford that is their fault
and the savers should not have to bail them out with poor rates .
if you can not afford to buy a house if rates go up then you should not buy .

Yep but what your forgetting TANKER is most people havent had a wage rise for 5 years plus most are working part-time.

Obviously if the government are offering subsidised house purchase some will take it under the present conditions even if it makes no sense to them or the economy in the long run.

US sub prime all over again I reckon in time.

Yep but what your forgetting TANKER is most people havent had a wage rise for 5 years plus most are working part-time.

Obviously if the government are offering subsidised house purchase some will take it under the present conditions even if it makes no sense to them or the economy in the long run.

US sub prime all over again I reckon in time.