Economic Winds of Change...

Interest rates are strange things. When I was at school I remember rates soaring, and a worried father. They peaked at 14%, but now most people fret over a .5% rise. We are a massively overextended economy. Reading the BBC today confirms that people are finally waking up to this fact. French Connections rapid drop in profits today is just one of many little signs that people are thinking differently. The other big factor is the last throws of the property series are talking more downbeat, and rapidly being replaced with other shows. Money management and fat busting are the new colours. How lucky the two can be combined!

So back to interest rates. I think now is the time to drop rates. Feel good has gone, and fewer people are thinking that jumping into massive debt to buy a "nest egg". So a little drop wouldn't do much harm. I think we stand at the beginning of a correction, why not ease it along...

Unfortunately this does help those trying to buy houses. Prices are still out of control in the estate agent windows. For anyone considering buying haggle very hard over the price. You'll regret going anywhere near the asking price in 5 years time.