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Thread: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

  1. #16
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Quote Originally Posted by Griska View Post
    The increase is to counter inflation.
    They don't seem to get that large increases in people's mortgage payments are sending families to the wall.
    A journalist from the Indo asked Trichet if he had any concern for people in Ireland who will suffer.

    He said Irish people benefit from price stability!
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  2. #17
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Quote Originally Posted by DCon View Post
    A journalist from the Indo asked Trichet if he had any concern for people in Ireland who will suffer.

    He said Irish people benefit from price stability!
    He may be right on that front; if the interest rates keep shop prices level (or more level than they might otherwise have been), the cost may equal the extra that has to be paid on the mortgage. The problem, however, may be mostly for those NOT on trackers, who have seen 8-9 rates rises in the last year or two, not just the two. If the rate rises mean the Euro rises against the dollar, people's fuel bills might go down.

    The downside, of course, is that the exporters won't do so well.

    I'd like to bet that may be the last rate rise for a while; the oil prices seem to have levelled off on the crisis scaremongering, and Greece hasn't really gone away. The international consensus seems to be that the ECB has gone too far. This may be more of a symbolic point than a real effort to get rates back to 4%...

  3. #18
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    FF (Mickey Martin on the news) think the ECB should have MORE responsibility.

    Jesus wept
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  4. #19
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Quote Originally Posted by DCon View Post
    FF (Mickey Martin on the news) think the ECB should have MORE responsibility.

    Jesus wept
    Well, if he was suggesting that they should be the ones taking responsibility for our banks, I'd agree.

    However, I doubt that was what he was suggesting, unfortunately.

  5. #20
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Quote Originally Posted by Griska View Post
    The increase is to counter inflation.
    They do that to counter inflation alright, it also means the death knell to an economy in full deflation such as the Irish.
    Thus all which you call Sin, Destruction—in brief, Evil—that is my true element.

  6. #21
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Quote Originally Posted by TotalMayhem View Post
    They do that to counter inflation alright, it also means the death knell to an economy in full deflation such as the Irish.
    The problem is that we are no longer in full deflation, thanks to the rising price of commodities. I've noticed my till prices inching up, and as for fuel...

  7. #22
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Quote Originally Posted by morticia View Post
    Well, if he was suggesting that they should be the ones taking responsibility for our banks, I'd agree.

    However, I doubt that was what he was suggesting, unfortunately.
    He wants reform. INSISTING on it

    The Fianna Fáil leader is demanding that the Taoiseach insists on a reform of the European Central Bank in the wake of the latest interest rate hike.

    Homeowners were today dealt another blow when the ECB increased interest rates for the second time since April.

    Those on tracker mortgages will suffer the pain immediately, but it is expected that all banks will pass on the hike to those on variable loans as well.

    ECB President Jean Claude Trichet says the interest rate hike is necessary to tackle inflation.

    However, Micheál Martin said that is not the case.
    http://www.newstalk.ie/2011/news/pre...achtas-phones/
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  8. #23
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    Default Re: ECB Raises Interest Rates by .25% - Impacts on Mortgages and Risk of Default ?

    Not offering much evidence to back his case, I note (at least not as reported in the above link).

    I don't know. Inflation seems to be hammering my pay packet about as much as the mortgage hikes; any one else any thoughts?

    Not that I think the ECB will be able to do much about resource shortages, sadly. interest rate rises or not.

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