- 24-05-2012, 10:11 #1
To the disappointment of some viewers, a financial apocalypse did not come soon enough.
The new playpen is open, in your own time carry on......
- 24-05-2012, 12:12 #2
Maybe we could have had two threads?
Eurozone Survive and Prosper...
Respective views could then have been put in either and the discussion would be more focused on the individual title?
At the risk of seeing this post go down the plug hole is not the curtailment of debate systematic of how the EU power brokers play when the going gets tough? Italy and Greece have their leaders replaced without the consent of the resident populations, punitive conditions requiring Sovereigns to pay up to the stability fund without recourse to question or debate I could go on!
The issue boils down to one simple and fundamental issue. Will the richer nations of Northern part of the zone subsidise those in the Southern part of the zone so those populations can continue to enjoy the standard of living they have become accustomed to?
Whether or not these poorer Countries are prepared to moderate their standards of living is academic, the problem is now and the problem is real.
Yes: Eurozone survive and prosper..
No: Eurozone Fail
- 24-05-2012, 12:50 #3
- Join Date
- Jan 2010
1) Close old playpen because you feel it has served its purpose.
2) Open new playpen for the same topic.
Am I missing something?
(Unless the new playpen is a PFI initiative and we're now paying twice as much for the same service...)
- 24-05-2012, 13:06 #4
Well chaps Mothercare is having a bit of a crisis. Taken from todays DT.
The group saw like-for-like sales tumble 6.2pc in the year to March 31 in the UK, where it plans to cut store numbers from 311 to 200 by 2015 in a bid to save £13m a year.
- 24-05-2012, 13:15 #5
- Join Date
- Jun 2005
Crisis? What crisis?
In all seriousness, why should most of us care?
The increase in the cost of living is comfortably offset by low mortgage interest. The slow painful; demise of Greece an the subsequent failure of the Euro isn't going to ruin my week
- 24-05-2012, 13:23 #6
Well, it might. The populations of Greece, Spain, Italy and Portugal add up to about 127 million, all of whom are legally entitled to move to Britain to work or claim benefits. It doens't take too many of them to work out that they're better off living in a council estate in London or Liverpool than on the streets of Athens or Madrid to seriously damage our economy.A l'eau; C'est l'heure.
- 24-05-2012, 14:03 #7
- 24-05-2012, 14:03 #8
In any event most mortgage products have over the course of the last few Months been de-linking themselves from the BOE rate as banks look to recapitalise and rake in greater profits. Maybe you haven't had to re-mortgage lately or are one of the lucky few that got those lifetime BOE tracker deals?
Make hay while the sun shines is excellent advice. The low rates we currently see are a blip in history never before have then been so low or for so long. Sooner or later they must go up. Sensible people will be hedging against that by paying down as much of the debt as they can whilst the rates are low, leaving them well placed when rates do go up.
Those that have used the spare funds on new cars or holidays are asking for trouble and in time it may well find them.
The last years of the boom saw persons taking out mortgages for 6 or 7 times annual earnings in order to be able to afford the insane prices which were the market. Average mortgage rates up till 2008 and the crash from 1985 are around 7% (see graph below). The average mortgage in 1985 may have been around £50,000 of which 7% average repayment would have meant £3.500 a year. Today the average mortgage is going to be much more, lets take a conservative figure of £125,000.
The same repayment on that at 7% will be £8,750 per annum such is the effect of leverage. In 1992 the UK was forced out of the ERM and rates rose to an eye watering 15% and whilst they did not stay there for any period of time it still did untold damage to the UK housing market. An average mortgage today at say £125,000 at that figure would mean annual payments of £18,750. Who today could afford to meet that?
- 24-05-2012, 14:06 #9
- 24-05-2012, 14:22 #10