Interest Rates Cut for UK Mortgages
The Interest rates for UK mortgages has been cut by 0.5% to 4.5%. This should be a good thing for getting people to enter the property market, this comes in addition to £500 billion plans to bail out UK finance. What will the UK tax payer get for their money? will they get a real stake in firms (whose shareholders have been coining it in for years). Or will this just be another ‘loan’? These measures will cost everyone in the UK between £1,000 and £2,000.
The stumbling block in the US bail out plan was that these institutions are private companies and should be treated as such, the US Senate has now agreed the proposed package to back up US finannce.
Neither Brown or Bush will wanted the financial ‘ship’ to go down on their watch. Both men seem to be on their way out, the US elections are just around the corner-Bush having served his maximum 2 terms. Brown is not expected to win the next election, the only question being who will be in charge of the two main parties. Has David Cameron actually got what it takes to win even against the hapless Brown regime? Will Labour be brave enough to stick with Brown. With the re-appearance of Peter Mandelson that is not looking likely….a deparate measure surely. Brown and Mandelson have never been friends so that was a strange one!
With Christmas coming up on the horizon, this is usually a record time of year for shops with billions being spent in the next 2 months. Is consumer confidence strong enough to see heavy activity which could bolster the economy?