Reply To: £ drifting towards 1.31 Euro…


In reply to Stevmk2, many people will be entering a period similar to that suffered by the British population during the reign of Henry V11, (1485-1509)the equivalent of todays Mr Darling was a certain Mr Morton, he taxed people higher and higher even though their incomes were falling and people were said to be in Morton´s Fork. Many people today living in Spain are in a position of receiving a fixed income whilst the cost of living rockets locally and the pound falls. They cannot sell their homes. I expect to see a whole swathe of schemes coming out offering extra income by taking out a mortgage on the property. My latin is not good enough to translate the equivalent of Caveat Emptor , when someone already has a property and is offered finance on it; but that they should use extreme caution.
The situation where people are given 80%-90% loans on their property at a high rate of interest is frightening , of course the adverts will stress that they can buy a new car, go on a cruise, eat out more often, return to UK to see the grandchildren more often etc etc . If property prices do fall as many expect, the poor old dears could soon be in a “negative equity” situation.

Although banks are very good at losing lots of money , as per Nick Leason and the guy from the French bank who managed to lose 4billion euro over a very short period. At the same time Banks are past masters at extracting vast sums out of a generally gullible public. Watch out their could be a thief about promising gifts.