Do you feel lucky?

At last count the interest earned on my savings was 18 pence. The government in their eagerness to do everything to make money cheap for business have now broken savings. Yet mortgage rates are rising in line with perceived risk. Neither are loans are cheap for the same reason. An email glows with my pre-acceptance of loans at rates of below 3%. Out of interest I go as far into the application until I get an actual real rate... 26%. Nobody wants to lend money. Not even the government.


My savings are an issue. I want to put them into a deposit for a house, but the economy forecasts around 10-14% drop over the coming year. That wipes out my equity. Perhaps even leads me to the fun path of negative equity. So here I remain, and my savings wither in real terms. Did I say real terms? Banks are mulling negative rates. I would predict a run on the banks but can we even use cash any more? I suddenly realise we are headed towards a cliff.


Why did the UK government drop the cost of buying a house to help the economy when putting small businesses first would have really helped. Is the housing market really the most important part of the UK economy? The media would have us believe so. But when the companies all fail that support everything else, proud owners of their castles will still be alright, Jack. Except they wont. Default is an ugly word. So is repossession. Destitute is worse.


For the want of a decent return on some savings I can see how lucky I really am. But even in our industry, protected as you would expect being the forefront of both technology and in areas where the digital consumption from home can only help us... Companies blink in the face of fear. Nobody wants to be found wanting with their hand outstretched. So the other hand closes. Projects are cancelled. Cash is hoarded. Companies feel snug in their cocoon of liquidity. Only it's that flow that gives companies life. All begin to starve.


All this because nobody knows. Nobody really. Nobody knows how to react to a pandemic. And we still do not.

Comments

Post a Comment

Popular posts from this blog

Counting Down...

The path through life that has lead me here is interesting. I wrote about it once, putting together everything I thought was important into a record from first memories right into my middle years. I didn't finish it before deleting it. I regret that but only for the focus being on the wrong side of everything. Perhaps one day, for my children, I will try again, and be more balanced, and honest. But not too honest. The truth, but not all of it. But definitely balanced. Time marches me into the last third of life. Half of everything around me reminds me that I need to prepare to retire. The rest tells me I will never have enough and will never retire. This latter message is the one gaining more traction.  I don't even know what retirement means. I'm only mid fifties but all sources now tell (and berate) me that I should have been doing this since my 30s or 20s. And yet I did, and it is still not enough. I envy my friends who have houses spare that they can sell. Those that ha...
Read more