Economics

So Mervyn King, Governor of the Bank of England, advises housebuyers to “consider carefully the possible future paths of both house prices and interest rates”. Well, no shit, Merv. Cheers for that.

I’ve duly scratched my head and considered them. Unfortunately, not being a soothsayer, I am none the wiser. I am left to conclude that if house prices keep rising and interest rates fall, I am laughing. If house prices and interest rates stay the same, I am roughly where I am now. If house prices drop a bit and interest rates rise a bit, I am slightly screwed but I won’t go bankrupt. And if house prices bomb and interest rates soar, I am totally screwed and I will go bankrupt. Well, that was worthwhile, wasn’t it? Not sure exactly what I’m supposed to do about it though.

I guess I’ve never understood economics. I hope these guys know what they’re doing. Whatever happens, I don’t expect Mervyn King is in danger of going into negative equity. Nope, it’ll be the ordinary, hardworking homeowners of this country who’ll get shafted if the fall in house prices that the elite bankers are suddenly trying to encourage actually starts to happen.