Rising interest rates

valdali

Good.
I guess in the 70's we were one of the top oil consumers, whereas most countries in the world use a lot these days.

It's still more expensive, but in these days of global economy, maybe the relative disadvantage will be less than in the 70's?

Top oil consumers? North Sea gas arrived in 1970. Few owned a car. No central heating. Or aircon in shops.

My first 1971 small leasehold 1.5 bed flat in a less than posh area was 7 times my salary. The interest rate climbed to 17.5 % in 18 months.
A house would, if I was ever able to mortgage, be more than 8 times.
No low start, always a minimum 5 % deposit.

Join a queue for the limited numbers of mortgages - a balancing act between finding something and not losing it because the mortgage did not come through in time, or waiting for "in principle" and losing it because you cannot find a home in time!

Having to move away from home area because there is nothing in your price bracket as prices climbed through the roof. (more than doubled in 18 months).

Th inflation in the early 70s was horrendous. Our DC were born in 71 and 73. Suddenly there was one wage to feed four mouths. Budgeting was impossible and mortgage payments rose all the time.
Friends with money from family used it to buy things they knew they would need, such as a freezer and a new TV, because prices were rising so fast.
It was a time of great uncertainty.

Good.
I guess in the 70's we were one of the top oil consumers, whereas most countries in the world use a lot these days.

It's still more expensive, but in these days of global economy, maybe the relative disadvantage will be less than in the 70's?

No change in the interest rate today.

petra

I don’t see how it can not. Oil is king.

theconversation.com/this-is-how-the-1970s-oil-shock-played-out-there-are-lessons-for-the-economy-today-278876

Thank you. Interesting.

That's odd, because when I follow the link I get a popup about cookies which gives the option (top righthand corner) to 'continue without agreeing'.

I wasnt given a choice on the link to reject.

You don’t have to ‘do cookies’ to read the link, *fancythat’. Most websites work perfectly well if you reject them; ‘the conversation’ is no exception.

It’s a 3 minute read and is not forecasting runaway inflation.

I cant read the link as dont do cookies.

The interest rate was sky high in the 1970s.

It hasnt reached that height since, as far as I know.
So not convinced yet, personally.

I don’t see how it can not. Oil is king.

theconversation.com/this-is-how-the-1970s-oil-shock-played-out-there-are-lessons-for-the-economy-today-278876

Though I am getting a bit, do patterns of previous things play out the same nowadays?
Not sure.

House prices for instance, used to be. 3.75 times salaray. Or somesuch.
Now it is soemthing like 8 times.

House price crashes. Every 15 years pattern or something.
That has changed too.
etc

Was it?

I will look some things up when I have more time.