To be angered off by the rubbish interest rates?

[dilemma456]

Message withdrawn

By the way, if anyone is interested, this week's Wired magazine has an interesting article on The Formula That Killed Wall Street.

Of course, hindsight is 20/20.

I've been to a conference on CDOs in Nice some years ago and was struck by how comfortable everyone was with bundled instruments whose underlying securities they didn't even know. We didn't invest in any of it. My boss at the time said that I was "too risk averse"

Tis a manbag, Iorek

Are you 'bored' now, Cote?

'It's a cautious prediction based on what I have heard/read on-/offline.
Nothing more than that, I am afraid.'
Is what I said..followed by a definition of 'soon' (6-18 months).

You could have stopped there but boldly pressed on.
And now you are all ? Diddums.
Well, as long as you learnt your lesson.

I did not tell you off for your 'Clinton did it' theory.
It was Lord Turner, the head of the FSA.

cestlavie, interesting point about the Independent article.

Regarding predictions I am waiting for the G20 in April.
Once we have a firm idea of the new global financial framework
it will be slightly easier to make a forecast.

If there is a new framework, that is!

The budget is approaching there will be heavy hints there as to what is coming

The budget is approaching there will be heavy hints there as to what is coming

to return to the original point - no YANBU. Interest on savings is a reward for allowing other people to borrow that money to buy their houses, cars etc. We need to encourage people to save to provide for themselves. Instead interest rates are cut to avoid people losing their houses.

There is no universal right to own your own home, many people borrowed silly amounts of money. House prices were driven up by bankers having massive bonuses and being able to buy houses for inflated sums.

When you have been prudent and see the less prudent being bailed out at your expense its not unreasonable to feel unhappy.

Cote,
Thought you might be interested to know that the head economists at DH's work ( a large international bank - not bailed out so don't flame me) are still saying that things are only going to get worse in medium term. Predicting a recession of 5 years+!!

Bubbaluv - I receive reports from several banks & institutions and that seems to be the consensus - prolonged recession of at least two years, then (hopefully) gradual recovery that needs to be well managed by central banks so as to avoid, primarily, stagflation - the boogeyman of macroeconomy classes.

There is probably a bit of over-pessimism in those forecasts, compensating for last year's optimism. I don't follow the markets as closely anymore to be confident enough to give a forecast of my own, but 5 years of recession does sound very long.

DaddyJ - We have established by now that you are unable to produce a single article or source that says "interest rates will rise soon", so do please stop claiming that this is a prediction based on "what I have heard/read on-/offline".

"Soon" is not 12-18 months, and it is not up to you to define the word "soon" as 1.5 years

Have not read the whole thread, but can sympathise with the OP, as am in similar position, and was initially really p^&*()d off by people who borrowed money to buy handbags and plunged the world into depression. However, it won't last forever, interest rates WILL rise again, becasue they always have and if you look around there are reasonable rates to be had, just don't tie yourself in too long or you will kick youself in Sept 2010 whan you can get a better rate. Keep on top of rates and be prepared to switrch, and the returns will, well, return. the losers, sadly be those who have had to purchase an annuity at this time - that is a really unlucky position.