View Poll Results: How ready are you for the day interest rates go up?

Voters
16. This poll is closed
  • I'm so ready I can't wait for the day.

    1 6.25%
  • I think I got this one under control.

    7 43.75%
  • Oops! Just had a spasm - got to go to the bathroom.

    5 31.25%
  • It's not going to happen.

    3 18.75%
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Thread: How would an interest rate increase affect you?

  1. #1
    Administrator I Robot's Avatar
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    How would an interest rate increase affect you?

    It has to come one day - an interest rate increase.

    Fin24 raises the issue of debt levels and our ability to deal with it in an article today. The bit that got me was this:
    The household debt-to-income ratio of South Africa rose from 49.1% in the final quarter of 2002 to 65.5% in the corresponding quarter of 2005.
    And that got me thinking - how ready are we for this day.

    There is no doubt that a lot of people are leveraged to the hilt, and will get seriously hit by even a small move. And probably the folks that will get hurt the most are businesses with unsecured debtors - mainly small business.

    So are you ready for the day or do you think it'll never come?

  2. #2
    Site Caretaker Dave A's Avatar
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    Is crunch time coming. According to this story on Fin24, we might know quite soon.
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    Full Member AndreMorgenrood's Avatar
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    It certainly will hurt

    It will hit me personally, my business, and the amount of money people have available will dry up hitting my business even harder.

    But I suppose "The Writing's on the Wall" as they say.

    Andre'

  4. #4
    Platinum Member Marq's Avatar
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    My economic development friends reckon we will be let off the hook this time round, but they expect half a percent next time and one before the year end.

    It has to come - the only question is when. Prior to talking to these friends, my thoughts were that we will see the first hit now.

    These guys have two doctorates and three masters between them on this subject of economics and it still anyones guess - Hope your gearing is in order. Good Luck Andre - hold tight.

  5. #5
    Platinum Member Marq's Avatar
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    You know why we have economists out there??

    To make the weathermen look good!

  6. #6
    Site Caretaker Dave A's Avatar
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    Good one Marq
    The trouble with opportunity is it normally comes dressed up as work.

  7. #7
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    You guy's are right even if you are prepared for it it still hurts, we have just had another feul increase and this does not do us any good in the service industry as when funds dry up we tend to suffer first.
    I am sure that there are going to be some very sad people out there that have over capitalised. This will effect the ecomomy even further.

  8. #8
    Platinum Member Marq's Avatar
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    I have fired the economic side of my friends I was speaking about earlier. From now I will just discuss philosophy with them (well they cannot be wrong there - can they?)

    In the meantime - batten down the hatches and tighten the buckles - the first hit is here.

  9. #9
    Silver Member Candy Bouwer's Avatar
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    I have fired the economic side of my friends I was speaking about earlier. From now I will just discuss philosophy with them (well they cannot be wrong there - can they?)
    Hey Marq, maybe you would also like to air your views in the business philosophy forum. The thread tapered off on "Cognitive dissonance"
    Candy
    "NETWORKING" is a "CONTACT" sport!"
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  10. #10
    Site Caretaker Dave A's Avatar
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    To a certain extent we can be relieved that they took action now.

    The committee has been accused of being slow to react in the past, particularly when everyone was saying the rates should go down. The writing was on the wall (I hate being right this time). The currency dip was just a bit worse than usual, a persistent trade deficit, growing personal debt approaching alarming levels, a multiple whammy that could not be ignored.

    The longer they let it slide, the more acute the pain is going to be.

    The economists siding against a change was probably the clincher

    That half point is going to dampen down even further a few sectors that are already off the boil. The next quarter is going to be interesting.
    The trouble with opportunity is it normally comes dressed up as work.

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