tag:blogger.com,1999:blog-1873811786986519370.post9137707926747384476..comments2023-11-03T00:57:01.693-07:00Comments on Information Revolution: Deliberately causing inflationDavidhttp://www.blogger.com/profile/16062717140344359936noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1873811786986519370.post-84367892516648791052013-11-08T18:01:33.468-08:002013-11-08T18:01:33.468-08:00I covered the general consequences of raising the ...I covered the general consequences of raising the rates in an earlier entry, but the first rule is if around 70% of the population loses from low interest rates of course you still have 30% of potential losers. But if that alone was the case surely it was better to look after the majority?<br /><br />Secondly everyone taking out a mortgage is supposed to ensure when they buy they are within the range to cover all possible rates, and something in the old days would not have been allowed to happen by the brokers. So although higher rates will raise outgoings everyone ought to have been prepared for it, people who spent more than 4 times their income, often over double that, can hardly complain when the inevitable happens eventually as the table they should be shown (was that only in the good old days?) of monthly outgoings for the entire range and if careful should be able to cope with the highest if it happens.<br /><br />So really no one saving has a choice with fixed rate safe investments as the market is limited, while everyone buying a property can choose their maximum price as there are very few unknown variables when doing so, so really need to take personal responsibility for their decisions. It really isn't fair to penalise the majority long term who couldn't choose what happened to their income, a third or a quarter of what it should be, for a minority who were in full control of their original situation.Davidhttps://www.blogger.com/profile/16062717140344359936noreply@blogger.comtag:blogger.com,1999:blog-1873811786986519370.post-32983829112296504132013-11-07T22:25:09.274-08:002013-11-07T22:25:09.274-08:00Being retired I am on a series of pensions. Luckil...Being retired I am on a series of pensions. Luckily these are index linked so I just about keep level with inflation on this score. As regards my savings though the last 5 years plus has seen a dramatic erosion in my ability to 'earn' a reasonable level of return. So I'm being 'screwed' to use your terminology. However if the Bank of England were to move interest rates up....and they have to at some stage........my children and the vast majority of people on mortgages will find themselves in real trouble!!!! Is there a way out of this dilemma? I think not......Gorseinonboyhttps://www.blogger.com/profile/02399937585023653003noreply@blogger.com