A welcome by-product of the mayhem, for those with mortgages rather than or as well as savings, is the reduction in long-term interest rates to which it seems to be leading, at least on this side of the proverbial pond. Money has moved from shares into government and other bonds, pushing up their price and so reducing the ‘yield’, and it’s these which are used by banks and building societies as the basis for fixed rate mortgages. The opposite seems to have happened in the US, as there is less faith in the future ability of the government to honour or afford their debt, and some of those funds have flowed in the UK and Europe’s direction. We, ironically for some have become a safer haven than the largest economy in the world. So, gather ye rosebuds.
“Trade war: Stock markets rally as Trump rows back on Fed and China threats”
Yet another reminder, should one be needed, of how quickly things can and will change. A nod and a wink in the right direction from himself and/ or an underling can provide the solace the money men crave and turn a plummet into, if not a soar at this stage, then certainly a bounce.
