I've been on about about it before but everyone keeps talking about an interest rates hikes with the realisation of another rise prior after immense speculation .
Firstly a definition from the Apple dictionary:
Funny how it actually uses interest rates in its example. But also
notice how it mentions a sharp increase as the correct definition for a hike. Is 0.25% really a sharp increase? Even if you get 3 or 4 in the space of a few years as we have, I still don’t believe it equates to a sharp increase. Go back to a time in the not too distant past when interest rates rose by 1% in one hit. Now you can talk about sharp increases.
Who is really to blame for interest rates anyway? I feel this is another area that people choose to blame the govt instead of looking at their own behaviours and seeing how they are contributing to the current situation. I’m no economics genius (for that go here) but I did do Economics in Yr 12 and it taught me a lot about how he economy works. A very intelligent teacher broke it down for me and my class. When this is done it’s actually quite easy to understand. Interest rates are trying to make you stop borrowing so much money and instead save a bit more and hold onto your money. So perhaps your credit card habits need to be looked at. Borrowing to pay for the house, car, lounge suit and whatever else simultaneously is probably not a good idea.
For those of us already in a loan, yes of course it is going to sting a bit, but if people got in over their head then that was the individual’s fault not the govt’s.
People tend to look to the govt first instead of looking to themselves first. You’re looking at your own habits to help the environment, now look to how you can help the economy.
Firstly a definition from the Apple dictionary:
Noun
1. A long walk, esp. in the country or wilderness.
• Informal a long distance.
2. A sharp increase, esp. in price: fears of a hike in interest rates.
Funny how it actually uses interest rates in its example. But also
notice how it mentions a sharp increase as the correct definition for a hike. Is 0.25% really a sharp increase? Even if you get 3 or 4 in the space of a few years as we have, I still don’t believe it equates to a sharp increase. Go back to a time in the not too distant past when interest rates rose by 1% in one hit. Now you can talk about sharp increases.Who is really to blame for interest rates anyway? I feel this is another area that people choose to blame the govt instead of looking at their own behaviours and seeing how they are contributing to the current situation. I’m no economics genius (for that go here) but I did do Economics in Yr 12 and it taught me a lot about how he economy works. A very intelligent teacher broke it down for me and my class. When this is done it’s actually quite easy to understand. Interest rates are trying to make you stop borrowing so much money and instead save a bit more and hold onto your money. So perhaps your credit card habits need to be looked at. Borrowing to pay for the house, car, lounge suit and whatever else simultaneously is probably not a good idea.
For those of us already in a loan, yes of course it is going to sting a bit, but if people got in over their head then that was the individual’s fault not the govt’s.
People tend to look to the govt first instead of looking to themselves first. You’re looking at your own habits to help the environment, now look to how you can help the economy.
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