Shaking The Magic Money Tree


Politicians of all hues are tripping over themselves to shake the Magic Money Tree and over what amounts to electoral bribes to entice marginal voters over the line. If they're not careful, some of those voters might cross the line and fall of the cliff.

Interest rates are at never seen before lows. In fact, you'd have to be a Time Lord to go back far enough, (beyond 1800), to see anything similar. When rates rise then, while some borrowers may have locked their rates in, (that is a must-do for everyone anyway), everything else they have borrowed will rise  and they'll rise steeply. Don't expect any reasonable or fair relationship between modest bank rate rises and say, for example, credit card rates or personal loan rates.

If any of these dunderheeds wanted to present a fair and reasonable playing fields for first time buyers they would equalise the anomaly that leads to English youngsters being £30-40k in debt before they start when they're competing for housing with kids from elsewhere in the UK who have that edge on them. I asked a young man the other day who is newly arrived in the job market if I was right in my assertion that most young people in England don't feel strongly about Scottish Independence. "On the contrary he said, I find a growing resentment that our taxes are paying for benefits like university education that is blocked to us and its tougher for us to borrow for house purchases than someone newly arrived in London from Scotland."