|
Post by neilsalop on Jun 8, 2010 9:22:34 GMT 1
We all knew before the election that there would be hard times ahead, whoever got in. Personally I think the Labour party had done a pretty good job of stemming the recession, but more needed to done to keep us moving out of it.
I (like most of us on here) am concerned about MY OWN lifestyle continuing to be sustainable. Low interest rates are pivotal to that and without them my mortgage payments will rise and therefore I'll have to make cuts elsewhere. I could really do with getting a newer car, but I am putting it off for now as I don't want to overstretch myself in the next few years if and when the rates rise.
As to whether the Lib Cons are going to make cuts in the right areas and raise taxes for the right people is yet to be seen, but I really hope that they don't hurt the lower paid workers (such as myself) that rely on tax credits to keep the standard of living that we have. If we have less money coming in every week, we still have to pay the bills and feed ourselves, so other things have to go; holidays, socialising, new clothes, new mobiles, even the TV packages will have to be cut back. This will have a knock on effect on the companies that supply these services and put even more people out of work and the vicious circle turns into an ever increasing spiral.
As I said we all knew there were hard times ahead and someones got to pay this debt. I wouldn't like the responsibility that Cameron and Clegg have got and I would imagine that Gordon is quietly quite happy that he's not got it at the moment.
|
|
|
Post by SeanBroseley on Jun 8, 2010 13:46:29 GMT 1
Don't forget why the cuts are being done: so that bondholders don't get worried about receiving their interest payments. Are we struggling to sell new issue UK government bonds?
|
|
|
Post by The Shropshire Tenor on Jun 8, 2010 13:59:38 GMT 1
I retired early having saved to make investments with the intention of supplementing my pension with interest on the investments.
The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts.
So I'm looking forward to a rise in interest rates, but would advise against conventional savings.
|
|
|
Post by RBA on Jun 8, 2010 15:13:01 GMT 1
I retired early having saved to make investments with the intention of supplementing my pension with interest on the investments. The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts. So I'm looking forward to a rise in interest rates, but would advise against conventional savings. sympathies but if Sean is right even a rise in interest rates wont help us Genuine open question Sean Does it matter or not if Bondholders panic about recieving their intest payments ?In other words does sentiment matter or are the facts the facts as it were?
|
|
|
Post by Old Bucks Head on Jun 8, 2010 15:38:04 GMT 1
The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts. You are an innocent victim of the recent obsession with over-indebtedness. The government's policy response has been disgracefully weighted towards helping the indebted and has screwed millions of prudent savers, who are often older and have no opportunity to make good any shortfall that they suffer. Britain won't default on it's debts. But with huge deficits in social security to come in the next few years things will not be as enjoyable as the illusions of the past 30 years.
|
|
|
Post by eclipsechaser on Jun 8, 2010 15:51:14 GMT 1
Ramsay .....his cooking is awful ,
|
|
|
Post by mrbunny on Jun 8, 2010 15:53:39 GMT 1
Ramsay .....his cooking is awful , Been on the gin again have you.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jun 8, 2010 16:13:19 GMT 1
I retired early having saved to make investments with the intention of supplementing my pension with interest on the investments. The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts. So I'm looking forward to a rise in interest rates, but would advise against conventional savings. would you consider yourself lucky to have been in such a good position.
|
|
|
Post by SeanBroseley on Jun 8, 2010 16:25:04 GMT 1
I retired early having saved to make investments with the intention of supplementing my pension with interest on the investments. The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts. So I'm looking forward to a rise in interest rates, but would advise against conventional savings. 20th issue 3 year index linked certs RPI plus 1% p.a. tax free if held over 3 years. £15,000 max'm.
|
|
|
Post by nicko on Jun 8, 2010 16:30:37 GMT 1
I retired early having saved to make investments with the intention of supplementing my pension with interest on the investments. The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts. So I'm looking forward to a rise in interest rates, but would advise against conventional savings. 20th issue 3 year index linked certs RPI plus 1% p.a. tax free if held over 3 years. £15,000 max'm. Who do you see about those Sean. I'm seriously thinking about withdrawing my savings and sticking them under the mattress. I'm not even that interested in a big return, just somewhere where I stick money where it's going to be safe for the lads future
|
|
|
Post by Old Bucks Head on Jun 8, 2010 21:07:15 GMT 1
20th issue 3 year index linked certs RPI plus 1% p.a. tax free if held over 3 years. £15,000 max'm. Who do you see about those Sean. I'm seriously thinking about withdrawing my savings and sticking them under the mattress. I'm not even that interested in a big return, just somewhere where I stick money where it's going to be safe for the lads future www.nsandi.com/products/ilsc
|
|
|
Post by nicko on Jun 9, 2010 7:45:30 GMT 1
Who do you see about those Sean. I'm seriously thinking about withdrawing my savings and sticking them under the mattress. I'm not even that interested in a big return, just somewhere where I stick money where it's going to be safe for the lads future www.nsandi.com/products/ilscThank you. Does say your investment is 100% secure as well.......
|
|
|
Post by SeanBroseley on Jun 9, 2010 13:15:48 GMT 1
Don't forget why the cuts are being done: so that bondholders don't get worried about receiving their interest payments. Are we struggling to sell new issue UK government bonds? In fact gilt yields are lower now than they were for much of the time that QE was taking place......
|
|
|
Post by SeanBroseley on Jun 9, 2010 13:25:23 GMT 1
I retired early having saved to make investments with the intention of supplementing my pension with interest on the investments. The reward for saving hard and doing without has been to see my capital reduced by 20% and interest reduced to peanuts. So I'm looking forward to a rise in interest rates, but would advise against conventional savings. sympathies but if Sean is right even a rise in interest rates wont help us Genuine open question Sean Does it matter or not if Bondholders panic about recieving their intest payments ?In other words does sentiment matter or are the facts the facts as it were? The facts are only indirectly salient. It is sentiment, expectations, guesswork that applies. Gilt yields are currently being reduced to levels below that obtained during much of the period of quantitative easing. i.e demand for UK gilts is now greater than when there was a falsely high demand. Yields at this level show that there is under supply - i.e. we can borrow to restructure debt over a longer period. Duration (a function of term and interest rate) of the UK debt is already over 15 years (about 4 times the term of US debt).
|
|