Why Is The Cost Of Living Mortgage Support Only 6 Months?

Money is one of our biggest stresses. It can make us feel ill, impact our mental health, affect relationships, reduce our quality of life, increase crime, compromise our values and diminish our contribution to society. 

When you've worked hard all your life, and the government caused our hardship - I blame Truss and Kwateng for the price we've had to pay - I wonder why only 6 months is available to alleviate what is going to be falling off a cliff edge. 

You're only given a short rope to climb out of a deep hole. The thing is you're not looking for a free ride, you'll still pay off your mortgage, but all your savings are being taken away, the banks are making billions, the politicians have all their perks, second jobs and blame everyone else. It's a cash flow issue. 

18 or 24 months of being pushed to breaking point is no way to live. This is a country which favours the rich and lives off the back of the poor. That is the image perpetuated now. 

You're basically fed up. It's a system that lacks any kind of reasonableness and continues to erode trust in government. 

No one calls out this system. No main stream media tackles the heart of the problem. It is a broken country we live in. Capitalism and democracy are failing, not that the alternatives are better. 

Interest rates are killing us. Their killing small businesses, everyday people and economies. The rich are getting richer but in the long term it will be to the detriment of all. 

There is a helplessness. I see it everywhere - online and in real life. This video from BBC question time from last year gives you a sense of it. 

Where is the vision, sensibility and humanity? Where are the great leaders? Where is the world going and what can we do about it?

High Interest Rates Are The Wrong Mechanism For The UK's Inflation

Today's inflation figures are welcome, but is has become increasingly clear to me that high interest rates have been the wrong choice. 

Interest rates are an outdated and class driven way of impacting inflation. It first hits the working class, then the middle classes. This reflects a society that is failing to evolve & truly want social mobility.

Public perception is that we have a government that has had little interest in the people of this country. People are poorer. Compared to other countries, the UK is uncompetitive & failing in too many areas.

People are angry. Not enough is being done as people are losing their life savings. This has been so poorly managed.  Wealth is being transferred to banks. 

Bumper profits have been announced by some companies. This is not good or responsible corporate citizenship. There should  be a tax on benefiting from the suffering of others. How can we call ourselves human and humane if we perpetuate unethical behaviour and we don't speak out about it? 

Forcing interest rates to these ridiculous levels is short sighted in any event. It will force the UK into a massive recession which will ultimately harm corporates & the wealthy. It discourages anyone investing significantly in the UK.

Why was the solution to increase costs via interest rates to manage inflation rather than bring in cheaper imports to force prices down? We live in a global competitive world, but we are using old measures to deal with statistics created by a patriarchal hierarchical system.

If the point is to reduce the labour market, aren't there more direct measures rather than interest rates?  Interest rates are about slowing things down & causing pain. It's a choice who is impacted by economic measures. 

A fairer way would have been taxes  strategically raised in certain areas or a voluntary tax is paid by the wealthy and those businesses who have profited in good times and bad. 

We need creative out of the box measures. The attack on the arts is another misguided politically poor decision, but more on that another time. 

If you are struggling with interest rates & the cost of living, the only real option seems to be to vote against a government which is failing. 

Banks are not making it easy to:

• switch to interest only
• not be penalised by temporarily going variable to ride out the high rates
• offeeing competitive deals - most deals are at 2 years or 5 years - no longer 1 year. 

Instead, they are leading with notices that your home may be repossessed. 

Britain is at breaking point and ineffective leadership has been at the heart of it. It will ultimately result in British businesses & people falling behind the rest of the world. 

We need to look at the big picture and sadly high interest rates have been used in the worst possible way which will cause the least desirable outcomes for all of us. 

Watch:

• "It’s not a cost of living crisis…it’s a cost of Conservatives greed crisis”

Read:

• Inflation falls to 7.9% in bigger than expected drop
• There’s only one way to tackle Britain’s mortgage meltdown – get the banks to cough up
• Bank profits poised to top £40 billion while UK economy struggles
• Mortgage cost rises: how other countries compare with the UK
  
• Inflation is causing real pain. But raising interest rates will make it worse

The Little Annoyances That Keep Us Awake

The 1 step backwards to see the 100 steps you've taken forward - the glass is never full. There's should have, could have, would have. 

So tonight I did the right thing and showed compassion & sensitivity. I have mixed feelings about the situation because it has made me doubt my way forward. 

Did I make a mistake? Perhaps. But then we all make mistakes. It's not the end of the world. It just means we learn hopefully from it, and are wiser in our decisions going forward. 

So the story is that I agreed something with someone. After doing it, they rescinded on the agreement. Fortunately it wasn't a huge amount of work, but still it was a precious few hours I could have spent on something else. I guess it makes a great anecdote to tell, one day. 

It was essentially a goodwill job for no payment. Honestly, why I do these, I don't know. It really isn't worth it. 

I guess I can't help but feel annoyed, naturally so. I won't make a big deal out of it. That's not my style. Does it make me weak? Is it frustrating trying to be a good person and not telling them this isn't ideal? 

The thing is, now I think that I no longer can move forward with other agreements I've made, as I've set the precedent they can rescind too. It's just become a waste of my time.

What are the positive?

1. It could have been worse.

2. I haven't really lost anything significant. 

3. Now I know agreements with this person are no longer credible. 

It confirms my hesitancy to move into this type of work. I took a risk and it didn't pay off today, but it is a useful example of what I can do. 

The reality is that the world is moving faster than many people are prepared for. They aren't able to cope with these changes. It's OK. I guess for my own sanity, I need to be aware of this as it can result in time wasting. I understand their point of view. It doesn't make me feel better though. As well, I can't sleep now because of it, which is even more annoying. 

I just needed to vent. I have to let it out, send it out and make my peace with it. Now back to trying to go to sleep. 

The Power of Empathy

Many of the most inspiring people in our world possessed an abundance of empathy. So why us it that at times, there seems to be so many people who lack empathy. 

Is it the stiff traditional British keep calm carry on attitude? 

When I see a lack of empathy in someone, it makes me wonder about their humanity. Perhaps it is an unfair leap. 

In a world where we face one challenge after another, I want a more supportive environment. Where leaders and role models cannot find compassion for those who are struggling, where feelings are invalidated, I can't help but think are we losing our way? 

As for people in my life, I want to spend more time with people if we are kind to each other. I am beginning to realise there is toxicity that we allow into our lives. We tolerate it.  

Be kind is not just words we say. It is about values, behaviour and how we live. It doesn't mean we can't criticise, but it is also about knowing when to do so, how we deliver it and recognising there is a person on the other side, who may be fragile. We have periods when we are vulnerable and just need others to be there for us. We're not perpetual victims. We're not overly sensitive. 

Yes we all make mistakes.  We don't always see or hear what others or saying, or recognise what they need. It is easy to get caught up in our own problems. 

Finding the balance in all of this is tricky. Empathy is power. It can strengthen you, those around you and is a trait we admire, but often take for granted. If there's one thing we can all work harder to do, it is to find more empathy for others. 

Why is the Credit Suisse story a big deal?

Switzerland's biggest bank, UBS, is buying Credit Suisse in an emergency rescue deal, but what makes it significant is that this story is a part of a larger narrative of financial market panic. 

Credit Suisse Group AG is a global investment bank and financial services firm founded in Zurich in 1856. UBS will pay more than $3 billion and assume up to $5.4 billion in losses. 

The slow demise of Credit Suisse culminating in the merger will not surprise many people. The FT - Clock ticks for Credit Suisse video provides useful background, contextualising it's downfall. 

All of this is reminiscent of Lehman's collapse and the Bank of America / Merrill Lynch merger in the financial crisis more than a decade ago. History repeats itself, despite changes in financial regulation and "lessons learned."

What does this mean for the man on the street? 

Share prices will continue to fluctuate. The economy is spiralling. Jobs are at risk. More businesses will fail. 

This is not a ripple. The collapse of Credit Suisse has vast implications, not to mention impacting the fragile foundation everything sits upon - confidence - which is crumbling. 

UBS' involvement stems the tsunami but the rain is coming and it will continue in a bleak and depressing way. 

What can individuals do?

Delay major investments. Cash flow is key in these difficult times. Try not to raid the rainy day funds and top up where possible. 

Those already struggling should seek help from charities, friends and family. Share your stories with news outlets & social media to put pressure on governments to help with electricity & rising costs, because they aren't doing enough. 

Recession

Whether we technically have a recession doesn't matter. Expect revisions to growth forecasts following this Credit Suisse saga. Times will be tough. Be kind and compassionate to others. Realise that this has physical and mental effects on everyone, no matter what their circumstances. 

Health and Happiness

In economic downturns, it can be hard to focus on health and happiness. It is probably more important than ever. 

The standard food and fitness advice prevails. It's easy to deprioritise and let stress overwhelm us. I highly recommend mindfulness and finding free activities that help you to relax.

Happiness can be found in simple things - a walk, a conversation with someone or listening to your favourite song. Incorporate these into your routine and do something everyday as being happy is a matter of practice, practice and practice. 

Wishing you beauty, health and happiness. 

C7. 

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