Economy Thread

[devnull]

https://www.bloomberg.com/news/articles/2022-09-02/amazon-closes-abandons-plans-for-dozens-of-us-warehouses

 

Remember, there is no Recession

[Foxx]

Food for thought.

 

[Uncle Joe]

NASDAQ on a 7 day losing streak.

But hey, how bout those MAGA extremists. 

[Foxx]

 

Companies declared insolvent in England and Wales jump by 43%

Quote

The number of companies in England and Wales declared insolvent jumped by 43% in August, according to government data, which adds to concerns for the health of the UK economy.

 

There were 1,933 insolvencies in August, compared with 1,348 in the same month last year, the Insolvency Service said. It was 42% above the level in August 2019, before the Covid-19 pandemic hit.

 

Economists are concerned that businesses will increasingly struggle as consumers cut back spending amid high inflation. The government has stepped in with an energy price freeze that will cushion the blow of increased cost of gas and electricity, but the unit price paid by households this winter will still be well over double the levels of recent years. ...

 

[Nouseforaname]

On 9/6/2022 at 5:29 PM, Uncle Joe said:

NASDAQ on a 7 day losing streak.

But hey, how bout those MAGA extremists. 

As much as I am invested in tech, this doesn’t surprise me much.  More blood will flow before things bounce back.

[Ann]

Almost as if it were planned

 

 

[Nouseforaname]

34 minutes ago, Ann said:

Almost as if it were planned

 

 

Trust me, if it was planned the economy would be booming 😂😂😂

[MothersMilk]

Dow getting closer to going under 29000 now. 

[Koko]

26 minutes ago, MothersMilk said:

Dow getting closer to going under 29000 now. 

 

Need to figure out when it's going to bottom out so I can start investing.

[MothersMilk]

10 minutes ago, Koko said:

 

Need to figure out when it's going to bottom out so I can start investing.

I've heard from a couple of different places that the interest rate won't be down to 2% or so until the end of 2025.

[Nouseforaname]

29 minutes ago, Koko said:

 

Need to figure out when it's going to bottom out so I can start investing.

My instinct tells me that we won’t hit the bottom for a while.  Maybe another 20% drop?

 

Either way, market timing is always difficult and no matter when you jump in, you are still getting good deals long term.

[Nouseforaname]

 

[Foxx]

2 year bonds up to over4%.

[Foxx]

Did you know that most mortgages in the UK are ARM's?

 

The UK’s financial system will CRASH in 2023, but they don’t want you to know

[Nouseforaname]

19 minutes ago, Foxx said:

Did you know that most mortgages in the UK are ARM's?

 

The UK’s financial system will CRASH in 2023, but they don’t want you to know

This was already discussed last week when the UK crisis happened.  My guess is that they will step in to bail out the borrowers.

[Foxx]

2 minutes ago, Nouseforaname said:

This was already discussed last week when the UK crisis happened.  My guess is that they will step in to bail out the borrowers.

So... energy relief and mortgage relief. What's next, grocery relief and credit card relief? Can baby momma relief be far behind?

[Nouseforaname]

3 minutes ago, Foxx said:

So... energy relief and mortgage relief. What's next, grocery relief and credit card relief? Can baby momma relief be far behind?

There’s something in that article that wasn’t mentioned.  In Canada, when getting a mortgage, you need to prove a if you could handle an important shock in interest rates.  This was implemented after 2008.

 

Does the same thing apply in the uk?

[Foxx]

19 minutes ago, Nouseforaname said:

There’s something in that article that wasn’t mentioned.  In Canada, when getting a mortgage, you need to prove a if you could handle an important shock in interest rates.  This was implemented after 2008.

 

Does the same thing apply in the uk?

Do you have a choice of fixed or ARM's in Canuckistan?

[Nouseforaname]

3 minutes ago, Foxx said:

Do you have a choice of fixed or ARM's in Canuckistan?

Of course but they usually are up to a maximum of 5 years.  You then have to refinance. 

[Foxx]

12 minutes ago, Nouseforaname said:

Of course but they usually are up to a maximum of 5 years.  You then have to refinance. 

I'm a little confused here.

 

Here in the US an ARM is an adjustable rate mortgage, meaning that it is fixed for a set period of time and then it adjusts (usually) upward after that fixed portion of time. The initial fixed rate portion is almost always cheaper than a fixed rate mortgage, which is how they sucker people in. But there is nothing saying that you have to refinance an ARM. You're kind of foolish if you don't but, I guess, there are circumstances that might prevent that.

 

Is this what you are saying with regard?