Uh-000 - Trichet hints at possible early rise in interest rates!

robut

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Surprise as Trichet hints at possible early rise in interest rates - European, Business - Independent.ie

"THE head of the European Central Bank (ECB) signalled yesterday that eurozone interest rates could rise sooner than many market watchers expect.

Markets had not been expecting an interest rate rise until the end of next year, with some predicting no rise until early 2012."

All I can say is - Kick us while we are down :(

If this happens its worse than game over .. Mortgage default on a grand scale

Robut
 
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Asparagus

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Surprise as Trichet hints at possible early rise in interest rates - European, Business - Independent.ie

"THE head of the European Central Bank (ECB) signalled yesterday that eurozone interest rates could rise sooner than many market watchers expect.

Markets had not been expecting an interest rate rise until the end of next year, with some predicting no rise until early 2012."

All I can say is - Kick us while we are down :(

If this happens its worse than game over ..

Robut
It just means we will default.

default = self debt forgiveness.
 

vanla sighs

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Bailout or no bailout at some stage we are surely going to default, no?
 

Alexis Colby

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Thats why they are providing a huge bailout
to cover the collaspe on mortage payments to banks when the rates go up
 

Asparagus

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Bailout or no bailout at some stage we are surely going to default, no?
A bail out would be if someone came and gave us money to pay off our debts. We said cheers and they fecked off all warm and fuzzzy at their own benevolance.

This is the IMF - the lender of last resort - lending us money to pay off debt.
So the net result is we change creditors from burnable banks to pretty unshakeable IMFLords.

It is inevitable that we either default or the IMF default for us because we do not have the capacity to repay the money that we will owe.
Hell we don't even owe the money that we owe,
No matter how much you cut from our spending, no matter how much you tax us we cannot pay what we owe.

The only way we can pay what we owe is by creating an economy that recovers and creates a banking system that we can privatise.

I for one hope we kick the IMF lads out of the country, then imprison the current government and get someone behind the wheel who isn't a fat, drunk or dying incompetant.
 

scallioneater

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Banks must be really F'd , rising EU interest rates is an attempt to make Irish banks less loss making. Lots of tracker mortgages paying their bank less that what the mortgage is costing the bank. I think this is spreading the pain over the whole euro zone.
 

robut

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If interest rates start rising in the Eurozone CAN we afford to remain IN THE Eurozone?

Just shows - Darwin ( I think ) said "Survival of the fittest". An increase in ECB Rates will kill us off completely?

Robut
 

TradCat

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I am shocked to learn that membership of the single currency could result in an interest rate inappropriate for our economy.
 

Skinner

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Trichet is thinking about European wide banking.

We are now an annoying little pussy boil on the EUR zone's a$$ that has been lanced and bandaged over.

In 2 years property prices here will probably have halved from the current real (selling price, not asking price) value.
 

Berty

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Now the feckers are trying to kill us.
 

robut

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If an ECB rate goes up - property prices up or down will not matter to those already on the edge of default. These people are already in negative equity, stuck in a property they cannot sell OR if they did would still be in substantial debt afterwards due to balance of mortgage still left to pay.

Even a fraction of a percent increase could make morgan kellys near 100,000 defaulters figure tiny?

Robut
 

FreshStart

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Even a fraction of a percent increase could make morgan kellys near 100,000 defaulters figure tiny?

Robut
Just a question: If interest rates rise, landlords will up the rent? Yes or No? Let's face it, they will be stuck with a property that is costing them money. What kind of property market would we have here?

There are eople in Ghost Estates with negative equity. This is massive.
 
G

Gimpanzee

If an ECB rate goes up - property prices up or down will not matter to those already on the edge of default. These people are already in negative equity, stuck in a property they cannot sell OR if they did would still be in substantial debt afterwards due to balance of mortgage still left to pay.

Even a fraction of a percent increase could make morgan kellys near 100,000 defaulters figure tiny?

Robut
FFS, Pull yourself together man. There are less than 500k variable rate mortgages in the country. Suggesting that a fraction of a percent increase is going to make 100k seem tiny is simply pissing your pants for no good reason.

edit: some suggest it may even be under 300k
 
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robut

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Ok Gimpanzee - I have now PULLED MYSELF TOGETHER :D

My words were based on an article I saw recently:

Irish Mortgage Brokers | Mortgage Brokers Dublin

In response to the INDEPENDENT article I flagged to Constantin Gurdgiev on twitter he replied:

"Interest rates? @ this stage - who cares... we can't be expected 2 pay this money back... The boom is getting boomier"

So ..
Robut
 
G

Gimpanzee

Ok Gimpanzee - I have now PULLED MYSELF TOGETHER :D

My words were based on an article I saw recently:

Irish Mortgage Brokers | Mortgage Brokers Dublin

In response to the INDEPENDENT article I flagged to Constantin Gurdgiev on twitter he replied:

"Interest rates? @ this stage - who cares... we can't be expected 2 pay this money back... The boom is getting boomier"

So ..
Robut
The arrears at the moment are not as a result of high interest rates, yet they are growing steadily. In other words something other than interest rates is the problem for these people. Unemployment, in many cases no doubt.

I'd assume Gurdgiev's point is that interest rates are irrelevant to the loans that are problematic (guessing he's referring to more than just residential mortgages too)- which is fairly clear given that interest rates are at rock bottom.

Interest rates up around 5% - then it'll make a lot more people sweat, but another 0.5% won't be catastrophic.
 


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