Fixed Versus Variable

I think the world is moving towards a synchronised double dip recession – US, Europe, China, UK . . . . I think variable interest rates could possibly end up below 5% by July 11.

Don’t lock in a fixed rate – you will be sorry if you do!

I’m not going to write a post for a while as my time is overcommitted. I’ll start back when rates have hit rock bottom and it is time to lock in on a bargain fixed rate. I’m not going to update any of my specific predictions of rate changes, as I do not really know how bad things will get, and don’t have access to any predictions of future inflation and economic growth that I think are reliable, as I believe we are at a big turning point.

I hope I am wrong.

Be very careful if you are planning to borrow – make sure your income or cash for servicing the loan is very secure.

cheers

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