Me_Want_Cookie Posted May 16, 2011 Share Posted May 16, 2011 I can see where Cambon is coming from with his point (I think), although I won't be able to eloquently type a reply. But I believe he's advocating short term pain by keeping interest rates high forcing a crash of properties, defaulting of companies and even banks etc etc. In contrast to what we have now trying to save everything and just prolonging the pain. Or something. That is what caused the great depression to get as bad as it did. Link to comment Share on other sites More sharing options...
Cambon Posted May 16, 2011 Share Posted May 16, 2011 That is what caused the great depression to get as bad as it did. Exactly, but I am not advocating a re-run of that. By having rates so low (at the moment), the Sterling currency is weak and the cost of imports is high. Since most of the UK's tangible exports rely on imports (raw materials), it is a false economy to think that the exports are cheaper. Higher interest rates will strengthen the Sterling currency and make imports cheaper, but the ratio between exports and imports will be roughly the same. What higher interest rates will do is get people both in the UK and abroad investing in Sterling. This alone will bring a fast end to the recession, as the US dollar and Euro are both pretty well knackered at the moment. Basically, the uk having it's own currency is an advantage at the moment. Link to comment Share on other sites More sharing options...
Slim Posted May 16, 2011 Share Posted May 16, 2011 But I believe he's advocating short term pain by keeping interest rates high forcing a crash of properties, defaulting of companies and even banks etc etc. In contrast to what we have now trying to save everything and just prolonging the pain. But putting rates up will not only cause the housing market to crash, it'll impact business, exports, put growth back into the red. I'm pretty sure Cambon is just approaching this from someone later in life who's not benefiting from low rates, and that's about the extend of his analysis here. I'd also challenge the 'down 20%' he's quoting. That Manx asking prices down 20% or value down 20%? What timescale? Based on what figures? Link to comment Share on other sites More sharing options...
GD4ELI Posted May 16, 2011 Share Posted May 16, 2011 I'd also challenge the 'down 20%' he's quoting. That Manx asking prices down 20% or value down 20%? What timescale? Based on what figures? Factor in inflation and prices in Glen Auldyn are down by 20% at least over the last two - three years. I would say the same is true of other areas in the north. Link to comment Share on other sites More sharing options...
Slim Posted May 16, 2011 Share Posted May 16, 2011 Factor in inflation and prices in Glen Auldyn are down by 20% at least over the last two - three years. I would say the same is true of other areas in the north. Get away. There's nowhere near enough sales to justify that. Link to comment Share on other sites More sharing options...
GD4ELI Posted May 16, 2011 Share Posted May 16, 2011 Factor in inflation and prices in Glen Auldyn are down by 20% at least over the last two - three years. I would say the same is true of other areas in the north. Get away. There's nowhere near enough sales to justify that. You would be surprised, also houses are *not* selling at 20% below the purchase price 2 to 3 to 4 years ago. BTW - you're right about Barclays savings rates, I am trying to talk to someone at Barclays Wealth in Douglas - almost impossible. Link to comment Share on other sites More sharing options...
Max Power Posted May 16, 2011 Share Posted May 16, 2011 Good luck with Barclays! Hopeless and criminal springs to mind where the handling of my savings account is concerned!!! Link to comment Share on other sites More sharing options...
GD4ELI Posted May 16, 2011 Share Posted May 16, 2011 Good luck with Barclays! Hopeless and criminal springs to mind where the handling of my savings account is concerned!!! So far all I can say is that they are just not interested, impossible to contact the right people on the phone. Link to comment Share on other sites More sharing options...
Cambon Posted May 16, 2011 Share Posted May 16, 2011 So far all I can say is that they are just not interested, impossible to contact the right people on the phone. Since my mother passed away last year I have had several dealings with Barclays in trying to sort out her accounts. It should have been very straight forward, but took months. They are absolutely useless. If I saw a Barclays building on fire, I would not call 999, I would fan the flames. Link to comment Share on other sites More sharing options...
Me_Want_Cookie Posted May 16, 2011 Share Posted May 16, 2011 Factor in inflation and prices in Glen Auldyn are down by 20% at least over the last two - three years. I would say the same is true of other areas in the north. Get away. There's nowhere near enough sales to justify that. You would be surprised, also houses are *not* selling at 20% below the purchase price 2 to 3 to 4 years ago. BTW - you're right about Barclays savings rates, I am trying to talk to someone at Barclays Wealth in Douglas - almost impossible. If you don't need to access the money anytime soon why not just go for the new National Savings Certificates which will pay 0.5% above UK RPI which is currently 5.3% and showing no signs of any major downward change. Link to comment Share on other sites More sharing options...
GD4ELI Posted May 16, 2011 Share Posted May 16, 2011 If you don't need to access the money anytime soon why not just go for the new National Savings Certificates which will pay 0.5% above UK RPI which is currently 5.3% and showing no signs of any major downward change. But aren't this lot owned by an Irish bank? Link to comment Share on other sites More sharing options...
ManxTaxPayer Posted May 16, 2011 Share Posted May 16, 2011 What I do know is that many are leaving the Island. Which people are these then? Or perhaps you have a link to the net population figures which must be far lower than, ooh, a year ago? Two years ago? I know LOADS of people on the Isle of Man and I can't think of a single one at the moment who is leaving, or planning to leave. Your statement smacks of yet another of your incessant digs at the island which seem to be made predominantly as a method of self assurance that you have made the correct decision to move away. Although you don't seem able to make the break completely clean. Link to comment Share on other sites More sharing options...
Jam_Sandwich Posted May 16, 2011 Share Posted May 16, 2011 In fairness, I'm making plans to leave dependent on house prices. If they drop enough for me to get on to the ladder I'll stay. Otherwise give it a few years and I'm off where my deposit here will pay a good chunk towards a house in England. *edit: where I work I know of a few colleagues who aren't on the ladder thinking on the same vein too. Link to comment Share on other sites More sharing options...
ManxTaxPayer Posted May 16, 2011 Share Posted May 16, 2011 A few years? Hardly an exodus. Link to comment Share on other sites More sharing options...
Jam_Sandwich Posted May 16, 2011 Share Posted May 16, 2011 A few years? Hardly an exodus. True - but over time it might become an issue with more youngsters leaving and an aging population etc etc I want to stay so I'm using this time to save up, in a few years I'll have a healthy wedge to make my mind up either way and hopefully will know what's happening with property prices by then. Link to comment Share on other sites More sharing options...
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