already had to drastically reduce my alcohol intake and nights out this summer in order to keep my finances in check!
Broosta wrote:there is a real danger of the media making things much worse.
The financial world is largely built on speculation and if the media convince public its a bad time to buy a house now then they won't buy a house now and everyone waits and all the houses are worth less and people panic.
The media loves it and amplifies things which generates more panic and people won't invest in anything as nobody's buying anything because the papers say its a bad time to.
Definitely agree here. Bad media coverage will only reduce consumer confidence which has a profound effect on the amount people spend and buy - consumer confidence here in the UK is also at its lowest for 17 years. The other problem is that of price expectations - if people begin to demand higher wages in order to cope with all these hefty price increases, it'll make things much worse in terms of further inflation! However, since unemployment is rising here in the UK (and a lot of other places for that matter including the USA) this doesnt seem to be very likely as collective employee bargaining power is reduced.
Broosta wrote:The truth and the bottom line is the interest rate is still going down not up.
Have to agree here also. The Bank of England is in a bit of a pickle at the moment. Rapid inflation and a falling currency will sway them towards raising interest rates, but the level of rising unemployment and slowing economy will sway them to cut rates. I think the latter is more likely.
Time to economize on fuel and food - using vehicles that dont guzzle so much of the damn stuff, sharing surf trips with others and splitting the costs.. it's all possible! Time to shop at the discount stores for groceries.
On the plus side: Banks want more cash from us at the moment so saving rates are looking very appealing! Also, there are some houses to be had at a bargain.
On the negative side: If you work in the financial, retail, construction or property sectors i'd be more worried than others about your jobs!
studying Economics at university... interesting stuff! being a student will get me through these next two years. but if all else fails, goin on the doll sounds very appealing