Chatting with friends in the finance world. They’re really concerned at the accelerating redemptions out of mutual fund type products. Folks who’ve retired but still have a variable rate mortgage have often seen their repayments jump 60% or more. On a fixed income, that means maintaining a roof over your head, but you’re eating like a backpacker and driving a 30 year old car (if you’re lucky). Sure, their cash deposits are earning over 5% but “real inflation” (not the bullshit figures handed out by the government), is hovering at 10 to 12% means they’re on a hiding to nothing. So, many are “cashing in their chips” just to make ends meet, and that paints a dire picture. With an interest rate rise tipped, things are just gonna get worse.
Gordie's Travels 