Economic recession?

[Vigil]

I saw this top US mathematician/investment analyst predicting a lng term downturn in the economy based on wave theory - basically previous patterns and the psychology of people and markets.

What's the feeling where you are?

[musketeer]

According to the news last night the government in the UK is thinking about putting a hefty rise on mortgage interest rates to try to control the house price boom. The figure mentioned was something like upto 8.5%. To give an idea of what this will do. on an £80,000 mortgage that rate will mean somethin like an extra £250 a month payment.

[jseal]

Vigil,

While he may be correct, this is but the latest of many such theories. They have had limited success in predicting the future.

[Lilith]

I predict he is correct.....In fact I made a couple large purchases now based on my expectation of all financial hell breaking loose shortly.

[Vigil]

I agree Jseal but these things can become self-fulfilling - unfortunately in the UK people have got into large debt without any exit strategy - other than that things will stay the same - which is probably the one thing that you can guarantee won't happen.

I think I am going to take the opposite tack to you Lil - time to baton down the hatches - though I see what you mean. I don't imagine that Gas Guzzlers are selling very well - I'm looking at an LPG conversion.

[Lilith]

I have no credit debt...so I refinanced my home when rates were bottomed out and financed my new cars. I am confident we are about to feel a major squeeze. I would have had to purchase a new/new to me vehicle in the next 2 years. I decided not to wait til interest rates begin going up. Otherwise we are tightening up too.

[Lilith]

http://www.comcast.net/News/BUSINESS//XML/1310_General_financial_business_news/88e569f0-74cf-4401-ba6e-a9e9d41d1410.html

[Irish]

This is just to say the way things usually go!I have been building
engines(boats,aircraft,motorcycles,automotive,etc.)for over 46yrs.
Everyone always talks about smaller engines,different fuels,hybrid
engs,etc.They talk about them but are never happy with them!
Just remember the old saying that"The road,to Hell,is paved with,
good intentions."I'm not saying that people don't mean well,but I
predict,that they will quickly change thier minds.I'm not trying to
start an argument,just speaking from experience.Besides other
vehicles,my wife & I,each have Jeep Grand Cherokees.(SUVs).If you keep them tuned right & watch your tire inflation,etc.,they get
very good miliage.Most people are just to lazy,to do these things.
I have been a mechanic,for most of my life & you wouldn't believe,
how out of tune most vehicles,brought to my business,have been!
It's VERY easy,to complaign,when most things are caused by lack
of awareness! Irish
P.S.Just my $.02.I'm sure that alot of people will disagree,but usually it's out of the "self-defense" mode!

[Vigil]

How strange that UK house prices, despite a London boom, are in real terms at the same price as when I posted this so many years ago. Hope that you all fared ok.

[jseal]

I suspect that one contributing factor is that HM government phased out the mortgage subsidy.