3 minutes ago, placeholder said:

You've got nothing except insults.

You keep telling me I have nothing. You don't even know me.

 

Little do you know.

 

Still. I like the idea you are concerned about my wellbeing.

 

Much appreciated.

6 minutes ago, youreavinalaff said:

You keep telling me I have nothing. You don't even know me.

 

Little do you know.

 

Still. I like the idea you are concerned about my wellbeing.

 

Much appreciated.

What I know is that there are 2 kinds of people who can claim to be well versed in economics. Those who are and those who aren't. The ones who are can actually demonstrate their knowledge through rational and germane replies. Those who can't resort to disparagement rather than rationality.

1 hour ago, youreavinalaff said:

No insults. Just an observation, based on your questions. 

An observation from which you draw a false conclusion.

 

1 hour ago, youreavinalaff said:

 

I'm not having an arguement, at least I wasn't aware I was. 

Argument in the logical sense of the word

 

a reason or set of reasons given in support of an idea, action or theory.

"there is a strong argument for submitting a formal appeal"

 

1 hour ago, youreavinalaff said:

 

My confidence is not misplaced, as can be shown in my own life situation. 

If you say so.

Perhaps the Government should make an announcement that anyone driven into trouble with their mortgage or facing rent hikes as a result of the interest rate increases should take it on the chin as it’s all their own fault.

 

I can see it winning votes.

13 hours ago, Chomper Higgot said:

Perhaps the Government should make an announcement that anyone driven into trouble with their mortgage or facing rent hikes as a result of the interest rate increases should take it on the chin as it’s all their own fault.

 

I can see it winning votes.

If I borrow money and cannot pay it back, it is between me and the lender to sort it out, not the government or tax payers.

 

Lenders have made it quite clear they are ready for any borrower to contact them to speak about issues with payments. Just as local councils have been doing with regards to council tax and energy companies have about bills.

40 minutes ago, youreavinalaff said:

If I borrow money and cannot pay it back, it is between me and the lender to sort it out, not the government or tax payers.

 

Lenders have made it quite clear they are ready for any borrower to contact them to speak about issues with payments. Just as local councils have been doing with regards to council tax and energy companies have about bills.

Roll on the elections.

1 hour ago, youreavinalaff said:

If I borrow money and cannot pay it back, it is between me and the lender to sort it out, not the government or tax payers.

 

Lenders have made it quite clear they are ready for any borrower to contact them to speak about issues with payments. Just as local councils have been doing with regards to council tax and energy companies have about bills.

That is a sensible and necessary first step. However, what happens if the banks and customers cannot sort out things between them?

The political impacts of rising interest rates are becoming clear:

 

https://www.theguardian.com/business/2023/jun/24/mortgage-rise-impact-will-dwarf-energy-bills-crisis-for-uk-homeowners

4 hours ago, Chomper Higgot said:

Roll on the elections.

I agree.

 

5 hours ago, youreavinalaff said:

If I borrow money and cannot pay it back, it is between me and the lender to sort it out, not the government or tax payers.

 

Lenders have made it quite clear they are ready for any borrower to contact them to speak about issues with payments. Just as local councils have been doing with regards to council tax and energy companies have about bills.

I would have thought misapplying microeconomic thinking to a possible macroeconomic threat was a thing of the past. What mortgage default rate is sustainable before it has a seriously deleterious impact on the British economy?

9 minutes ago, placeholder said:

I would have thought misapplying microeconomic thinking to a possible macroeconomic threat was a thing of the past. What mortgage default rate is sustainable before it has a seriously deleterious impact on the British economy?

It’s not simply a matter of mortgage defaults, while inevitably bringing with them misery, a bigger threat to the

economy is contraction in business investment, undermining growth and adding to the already high SME failures.

 

Non of which will help the underlying causes of UK inflation, supply side deficiencies.

 

It will also worsen the UK economy’s already poor productivity.

What a mess.

 

4 minutes ago, Chomper Higgot said:

It’s not simply a matter of mortgage defaults, while inevitably bringing with them misery, a bigger threat to the

economy is contraction in business investment, undermining growth and adding to the already high SME failures.

 

Non of which will help the underlying causes of UK inflation, supply side deficiencies.

 

It will also worsen the UK economy’s already poor productivity.

What a mess.

 

I agree. And, of course, the point your making is also a macroeconomic one. But underinvestment, while a serious problem, isn't as potent a threat as are widescale mortgage defaults.  That's the kind of thing that can cause the financial system to freeze up if there is no massive government intervention.