Thursday 7 February 2008

Mortgage bliss; Badgernomics


The Bank of England has reduced interest rates again today to 5.25%. The most interesting note that I saw on the release was that there is a high expectation, even by the Bank, that inflation will rise over the next few months; Unless there is a really severe downturn.

However, if you are a mortgage owner with years to yet until the mortgage is paid off, think how well you will be doing. Interest rates are low, meaning your payments are down, meanwhile inflation is relatively high meaning that the overall capital you owe is decreasing quite rapidly.

If you are a pensioner or saver then of course the situation of low-level stagflation is a disaster; but if you are either of those no doubt you vote Tory anyway so Brown and Badger don't care about you.

Think of all those happy people in houses with 100% mortgages benefiting instead. Makes on proud to be British, eh Gordon?

7 comments:

Mark Wadsworth said...

But apparently mortgage interest rates have completely decoupled from the BoE base rate, they are still creeping up, aren't they?

Wolfie said...

This was to be expected, this rate cut is not for the benefit of the man in the street and printing money not interest rates or wage rise is fuelling inflation. Expect this model to remain in place for the time being as it is now formal government policy in much the same way as it was under Labour in the '70s.

Your current poll : None of the above (you didn't include the option)

James Higham said...

Tent city, as Wolfie says, here we come.

Old BE said...

This is excellent news for me personally, but when I take a step back I can't help feeling that rates should be going up not down, or at least falling more slowly. Then again, perhaps once the effects of the last peak have worked their way through we will be in the middle of an almighty bust...

Anonymous said...

You are right that in a hyperinflationary economy it is better to be in debt than have savings. That was what sparked the sudden explosion of private property ownership in the late 70s. People were sick and tired of being told by the council where they could live and having to wait until a council house in some rat infested back street became available and be forced to snap it up or be told to return to the back of the queue. The great joys of social housing. They had also come to realise that owning your own property was the first step to getting out of serfdom to the state. House builders were only to keen to meet demand with massive home building projects of cheap houses. At the time inflation was rampant, and wage inflation was rampant too. You could buy a house today and know that your mortgage would be loose change tomorrow. That was where the mantra "get on the housing ladder as soon as you can" came from. In a hyperinflation economy it makes sense. Of course that mantra became used and abused in later years to mean "get on the housing ladder now or you never will" - which is a falsehood.

Anonymous said...

aaaa片, 免費聊天, 咆哮小老鼠影片分享區, 金瓶梅影片, av女優王國, 78論壇, 女同聊天室, 熟女貼圖, 1069壞朋友論壇gay, 淫蕩少女總部, 日本情色派, 平水相逢, 黑澀會美眉無名, 網路小說免費看, 999東洋成人, 免費視訊聊天, 情色電影分享區, 9k躺伯虎聊天室, 傑克論壇, 日本女星杉本彩寫真, 自拍電影免費下載, a片論壇, 情色短片試看, 素人自拍寫真, 免費成人影音, 彩虹自拍, 小魔女貼影片, 自拍裸體寫真, 禿頭俱樂部, 環球av影音城, 學生色情聊天室, 視訊美女, 辣妹情色圖, 性感卡通美女圖片, 影音, 情色照片 做愛, hilive tv , 忘年之交聊天室, 制服美女, 性感辣妹, ut 女同聊天室, 淫蕩自拍, 處女貼圖貼片區, 聊天ukiss tw, 亞亞成人館, 777成人, 秋瓷炫裸體寫真, 淫蕩天使貼圖, 十八禁成人影音, 禁地論壇, 洪爺淫蕩自拍, 秘書自拍圖片,

做愛的漫畫圖片, 情色電影分享區, 做愛ㄉ影片, 丁字褲美女寫真, 色美眉, 自拍俱樂部首頁, 日本偷自拍圖片, 色情做愛影片, 情色貼圖區, 八國聯軍情色網, 免費線上a片, 淫蕩女孩自拍, 美國a片, 都都成人站, 色情自拍, 本土自拍照片, 熊貓貼圖區, 色情影片, 5278影片網, 脫星寫真圖片, 粉喵聊天室, 金瓶梅18, sex888影片分享區, 1007視訊, 雙贏論壇, 爆爆爽a片免費看, 天堂私服論壇, 情色電影下載, 成人短片, 麗的線上情色小遊戲, 情色動畫免費下載, 日本女優, 小說論壇, 777成人區, showlive影音聊天網, 聊天室尋夢園, 義大利女星寫真集, 韓國a片, 熟女人妻援交, 0204成人, 性感內衣模特兒, 影片, 情色卡通, 85cc免費影城85cc, 本土自拍照片, 成人漫畫區, 18禁, 情人節阿性,

Anonymous said...

情色電影, aio交友愛情館, 言情小說, 愛情小說, 色情A片, 情色論壇, 色情影片, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊美女, 視訊交友, ut聊天室, 視訊聊天, 免費視訊聊天室, a片下載, av片, A漫, av dvd, av成人網, 聊天室, 成人論壇, 本土自拍, 自拍, A片, 愛情公寓, 情色, 舊情人, 情色貼圖, 情色文學, 情色交友, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 色情遊戲, 情色視訊, 情色電影, aio交友愛情館, 色情a片, 一夜情, 辣妹視訊, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊, 視訊美女, 美女視訊, 視訊交友, 視訊聊天, 免費視訊聊天室, 情人視訊網, 影音視訊聊天室, 視訊交友90739, 成人影片, 成人交友,

免費A片, 本土自拍, AV女優, 美女視訊, 情色交友, 免費AV, 色情網站, 辣妹視訊, 美女交友, 色情影片, 成人影片, 成人網站, A片,H漫, 18成人, 成人圖片, 成人漫畫, 情色網, 日本A片, 免費A片下載, 性愛, 成人交友, 嘟嘟成人網, 成人電影, 成人, 成人貼圖, 成人小說, 成人文章, 成人圖片區, 免費成人影片, 成人遊戲, 微風成人, 愛情公寓, 情色, 情色貼圖, 情色文學, 做愛, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 寄情築園小遊戲, 色情遊戲, 情色視訊,