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The Official Liz Truss no longer PM but still a Clusterfuck thread


Clown Job

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We just renewed our mortgage in the last few weeks, got a fixed rate of 4.09%.  It will be a bit of a jump in payment but affordable for us - we are very lucky though.  I'm sure there are plenty of people who are going to be in precarious positions due to this.  So many people live in debt up their necks to pay for their basic necessities.  When I worked for RBS one of my colleagues told me that when the bank crashed and people stopped getting bonuses they had people taking their kids out of private schools, selling houses and cars etc because they'd relied on their bonus to pay for this stuff.  Just seems crazy to me.

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55 minutes ago, Carl Cort's Hamstring said:

All the while, the good people of Inverclyde will be miraculously unaffected by spiralling interest rates. Presumably, no-one in Greenock owns their own home or rents from a private landlord.

A mortgage at £50k is much more affordable at high interest rates than a mortgage at £300k or £500k. And tenants are not even remotely the ones who will lose out from a purging of private landlords. The Clyde Riviera will be fine then, so long as we build a big, beautiful wall to keep middle class Edinburgh refugees out. 

The southern England/Edinburgh property bubbles have involved a massive and uninterrupted transfer of asset wealth from the rest of the country to those areas for fully 40 years. It's high time that was corrected for sound economic reasons.

The fact that the average voter in those areas cheerleaded that destruction of the rest of the country and chose the party and system that will now deliver a similar fate to themselves is simply delicious. 

 

 

 

 

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1 hour ago, ICTChris said:

We just renewed our mortgage in the last few weeks, got a fixed rate of 4.09%.  It will be a bit of a jump in payment but affordable for us - we are very lucky though.  I'm sure there are plenty of people who are going to be in precarious positions due to this.  So many people live in debt up their necks to pay for their basic necessities.  When I worked for RBS one of my colleagues told me that when the bank crashed and people stopped getting bonuses they had people taking their kids out of private schools, selling houses and cars etc because they'd relied on their bonus to pay for this stuff.  Just seems crazy to me.

We managed to get 3.75% (by a matter of days as it happens before it would have risen to 4.04%). Like yourself a bit of a jump but affordable. We can look again in Feb to see if a slightly higher rate without the early repayment fee is cheaper on a monthly basis, but, unless something drastic happens, it almost certainly will not be.

But we looked into it as early as we realistically could (just prior to 12 months before) - the number of people I'm reading about that remortgaged recently / are about to in a month or so and left it to the last minute to do so (and, as such, missed out on securing considerably Iower rates than they ended up with) I find unbelievable tbh. Too much relying on Martin Lewis for every financial decision rather than having a grasp on their own financial decisions it would seem.

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Crash they will, too. If you take a £300k mortgage currently on a 2% deal over 25 years (the standard shit) that's about £1200 a month. Same thing at 7% is nearer £2100 month.

Add that to the cost of literally everything rocketing up and you even a well above average household income will struggle badly to cope. 

This trajectory will see millions of people not able to pay their bills. The banks will be shitting themselves about the number of defaults on the horizon.

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3 hours ago, ICTChris said:

We just renewed our mortgage in the last few weeks, got a fixed rate of 4.09%.  It will be a bit of a jump in payment but affordable for us - we are very lucky though.  I'm sure there are plenty of people who are going to be in precarious positions due to this.  So many people live in debt up their necks to pay for their basic necessities.  When I worked for RBS one of my colleagues told me that when the bank crashed and people stopped getting bonuses they had people taking their kids out of private schools, selling houses and cars etc because they'd relied on their bonus to pay for this stuff.  Just seems crazy to me.

Prior to the 2008 crash, I worked for HBOS and our "normal" bonus was generally between 18% and 22%, however some of the top people were actually earning bonus of nearer 50% and that's 50% of 6 figures.

From my own perspective and the rest of us worker drones, the 18% or so just made up for a pretty mediocre annual salary but of course we were chucked in as "Fat Cat Bankers" by the moronic and scheming media and as a result had to put with no end of hassle from many misinformed members of the general public.

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37 minutes ago, WATTOO said:

Prior to the 2008 crash, I worked for HBOS and our "normal" bonus was generally between 18% and 22%, however some of the top people were actually earning bonus of nearer 50% and that's 50% of 6 figures.

From my own perspective and the rest of us worker drones, the 18% or so just made up for a pretty mediocre annual salary but of course we were chucked in as "Fat Cat Bankers" by the moronic and scheming media and as a result had to put with no end of hassle from many misinformed members of the general public.

I used to work for RBS/NatWest and I pretty much never got a bonus. I joined shortly after the crash as well and the staff at ground level basically just had their bonuses stripped away because 'the public were angry' about them. 

In fact it was only the non managerial levels that had their bonuses taken off them so, as you say, the shit to mediocre salaries. It was the people who were already on the most money, including CEOs on 7 figures, who retained theirs. Greedy fuckers the lot of them. 

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24 minutes ago, WATTOO said:

Prior to the 2008 crash, I worked for HBOS and our "normal" bonus was generally between 18% and 22%, however some of the top people were actually earning bonus of nearer 50% and that's 50% of 6 figures.

From my own perspective and the rest of us worker drones, the 18% or so just made up for a pretty mediocre annual salary but of course we were chucked in as "Fat Cat Bankers" by the moronic and scheming media and as a result had to put with no end of hassle from many misinformed members of the general public.

I worked in financial services and got a bonus but it wasn’t huge and I never relied on it. I truly don’t understand people who live so far beyond their means they are reliant on things like a bonus payment.

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14 minutes ago, ICTChris said:

I worked in financial services and got a bonus but it wasn’t huge and I never relied on it. I truly don’t understand people who live so far beyond their means they are reliant on things like a bonus payment.

I think the majority of this problem is due to weak unions / workers allowing a non contractural and non consolidated "bonus" to replace the decent wage rise that they no longer receive.

As such it has become normal in many businesses (especially financial) for a "bonus" of 3% to 5% to be expected, as this is really just a replacement for the wage rise that they don't receive.

Things will obviously have to change in this regard as I don't think the ordinary financial services staff will tolerate this any longer, given inflation and the rises that we're seeing across the rest of the sectors.

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1 hour ago, WATTOO said:

Prior to the 2008 crash, I worked for HBOS and our "normal" bonus was generally between 18% and 22%, however some of the top people were actually earning bonus of nearer 50% and that's 50% of 6 figures.

From my own perspective and the rest of us worker drones, the 18% or so just made up for a pretty mediocre annual salary but of course we were chucked in as "Fat Cat Bankers" by the moronic and scheming media and as a result had to put with no end of hassle from many misinformed members of the general public.

I worked in the HBOS call centre 2004-2007 (hideous, hideous time). I think we got about 3 or 4 bonuses in that entire time, both around £40. I got a 'disciplinary' for laughing at their pishy wee slogan (something like 'believe it and show it' or similar total bollocks). I had said in an email to a pal that it was total bullshit after our miniscule 'bonus' was unveiled. We had heard of branch staff getting £1k bonuses so were pretty excited. The managers didn't even have the decency to pretend what we got was a tiny, miserable pile of shite, putting on big fake smiles and enthusiasm. Pissed everyone off.

Customers saw that some branch staff had gotten a £3k bonus one time and refused to believe that we got either the £40 or absolutely nothing and were throwing huffy wee tantrums on the phones to us (no idea why, since we were an inbound service who just gave info to customers on their own products, mortgages in my case).

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7 hours ago, Todd_is_God said:

The problem is, so long as the US Federal Reserve continues to strengthen the dollar with rate hikes of their own then they are necessary. Unless you are suggesting that the pound being equal to about 90 cents is a good strategy in the long run.

If you want the bad news, the best guess is the Fed will punt at least another 1%-1.5% onto current rates before they stop.

Looking historically, I was thinking how shocked most people will be by current rates because they’ve only known these rates, but the BoE chart shows I’m mistaken. As recently as mid 2007, the rate was 5.75%, and it was over 10% just 31 years ago. The biggest hit is likely to be home values, as the increased rates make homes unaffordable at their inflated values, with the resulting deflation placing a number of borrowers upside-down, and trapped in their homes. Unfortunately, unlike the previous version of this game 15 years ago, there isn’t likely to be a nice friendly recovery over the hill, instead it’ll be an articulated lorry in their traffic lane as they crest the hill unless Liz gets her policies to f**k.

https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

Not to be entirely cynical, but if Liz gets her way, what makes you think the Pound could make a stand at 90 cents? I remember the shock when the Pound broke below 1:2 with the dollar, and it was widely assumed it was a temporary thing, time has showed otherwise.

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7 minutes ago, TxRover said:

Not to be entirely cynical, but if Liz gets her way, what makes you think the Pound could make a stand at 90 cents? I remember the shock when the Pound broke below 1:2 with the dollar, and it was widely assumed it was a temporary thing, time has showed otherwise.

Nothing, I just picked a value less than $1 as an example of why, despite Detournament's belief otherwise, that the BoE rate hikes are both necessary and inevitable if the Fed continues to strengthen the dollar.

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5 minutes ago, Todd_is_God said:

Nothing, I just picked a value less than $1 as an example of why, despite Detournament's belief otherwise, that the BoE rate hikes are both necessary and inevitable if the Fed continues to strengthen the dollar.

Fair enough, but it does make you think. What level of pain is the BoE willing/able to inflict to try to defend the Pound? U.S. rates are 3.25-3.5%, and forecast to be hiking to 4.6%, which would suggest the current 2.25% BoE rate would need to be up to at least 4%, if not 5%, for any hope of keeping the Pound level with the Dollar. The crushing impact on GDP of such a rise, combined with the stagnating economy post-BREXIT and the energy cost crisis is a foreboding combination, the likes of which haven’t been seen since at least 1978-1979. It is genuinely conceivable that a new Depression will settle in, rather than the expected Recession.

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5 hours ago, ICTChris said:

We just renewed our mortgage in the last few weeks, got a fixed rate of 4.09%.  It will be a bit of a jump in payment but affordable for us - we are very lucky though.  I'm sure there are plenty of people who are going to be in precarious positions due to this.  So many people live in debt up their necks to pay for their basic necessities.  When I worked for RBS one of my colleagues told me that when the bank crashed and people stopped getting bonuses they had people taking their kids out of private schools, selling houses and cars etc because they'd relied on their bonus to pay for this stuff.  Just seems crazy to me.

I got a lower rate than that when I got mine approved start July and although I did get a High street bank it was slightly high due to not quiet perfect credit, I think it's 3.2%.

Jump in last few weeks has been crazy.

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24 minutes ago, TxRover said:

What level of pain is the BoE willing/able to inflict to try to defend the Pound?

It's not the BoE's remit to defend the Pound - it's only goal is to keep inflation around 2%

The significance of the dollar here is that gas and oil are traded in dollars.

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I knew a few people who worked in the Edinborough financial arena

It wasn't the loss of bonuses that fucked them over, it was that they'd been sinking money year after year into employee share schemes where they got a discount on the current share price. Some were using it as a retirement nest egg, others to pay for an extension.

In the course of 2007/2008 the RBS share price went from 700p to about to 10p - wiped out

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