Rising rates, good for the economy

We do not comment much, "the other side of the Euribor" that a rise in rates can be beneficial for the economy (which is not mortgaged for many families).

Today you can read in "The World" article "Rising rates, good for the economy" in which he quoted the words of Joaquín Almunia:

"A gradual adjustment in the property sector could even have positive consequences for the Spanish economy because it would favor a shift in the composition of growth, so it is less based on domestic demand and that has a better mix between domestic demand and external demand '

On the other hand, the secretary of the Economy and Employment of the PSOE, Inmaculada Rodriguez-Pinero, believes that "a sharp rise in interest rates" would not result in a bad for Spain because "we have a high inflation differential with the European Union and this increase "can get a little bit so expansive growth in demand and help to reverse the inflation differential."

As such, we have too much debt in some historically low rates and that has overheated the economy. It is not ruled out a price adjustment in certain assets ...

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Written by Carlos Lopez on July 21, 2006 with 20 points.



20 comments

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Trackback # 1 Mention from Hipootecas.com
July 21, 2006, at 3:38.

hipootecas.com: Rising rates, good for the economy ... "A gradual adjustment in the property sector could even have positive consequences for ...

# 1, Jose Luis Montero

July 24, 2006, at 6:20.

This gradual adjustment of the speakers of these gentlemen, is fully in line with the neoliberal ideology of Mrs Loyola de Palacios and Mr. Rato ... I wonder who will want to say for the salaries of the Spaniards. Does this mean that the AMILY will live better with a Euribor a 5 or 6% which will result ... .. A DEBT general of the globalized and Spanish families mortgaged, which will cause a brake or slowing consumption, which repecutirá in employment ... making it the richest, even richer and the rest plunge us into a disastrous chaos, thanks This policy "adjustments". And did you know where there was talk of adjustments in time to recognize as serious consequences of its policy to something similar? In 44 and 45 he was well known to those withdrawn from the army of Hitler by the Russian steppes, "settings of lines." Hopefully the chaos that was at that time did not see it with these settings. Ah, of course, if the rate of climb is still stable, you know me, either. Solbes perhaps in November of 2007 we have a Euribor of 4.77% and in January 2008 of 5%, bringing the monthly payments of mortgages that were made in Spain between 2002 and 2004 variable interest will enable families Spanish average salary will increase by 2? And you know what is in 2008? Elections. They are not going to vote or their parents .... For some time the next Suresnes? It is high time to remove the OS, especially for not insulting to the true socialist or workers who stayed in Spain.

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# 2, JAIME RUIZ

July 24, 2006, at 9:12.

fully agreed with the neoliberal ideology of Mrs Loyola de Palacios and Mr. Rato ...?

THERE IS THE BEST POLICY TO ECONOMIC OR SOCIAL OR CLASS.

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# 3, Maria Jesus

February 14, 2007, at 13:10.

We want to match the living standards of other European countries based axfisiar to Spanish citizens. While politicians are more than happy because Spain is well placed within the European Union, we are paying such equality. And I say: If I come so well for the economy (not to whom) to raise interest rates rise WHY NOT ALSO OUR SALARIES?
Stop us HANDS IN THE NECK PLEASE!
(I also want equality, but in all senses)

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# 4, Gilberto

February 14, 2007, at 14:05.

Maria Jesus, you should not look at the economic problem from one side. If the economy goes well, Europe and Spain goes well, but if the economy goes bad, you may not have a job or a salary or pay for a plate of food daily. When a company spends (paying their workers, for example) more than it succeeds, goes into bankruptcy and into an economic crisis in these cases are usually talking about restructuring or early retirement, if not in the closure. That is the idea that you are away.

In addition, remember that interest rates were already low, it is hard to understand that they will fluctuate, to go correcting macroeconomic issues for the benefit of all and which goes beyond the simple fact of a mortgage (I refer to any mortgage).

I said the other mortgaged ... .-)

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# 5, Manuel

February 27, 2007, at 15:38.

Good Mr / Ms: I am going to state my case. In my bank I have simulated the hypothetical cost that I am going to have to face in the next 2 years. Currently pay under which hired a year ago, ie 3.72 +0.40 differential. This is translated into euros for me months in 1059 euros (40% of our revenue-Married with two children). They are trying to convince me that ensures half of the loan at a fixed rate and for a period of three years. This is what we have gone way:

"Various scenarios:

3.72 (Oct 06) +1.09 (oct.07) + 0.40 = 5.21% differential = 1,200 €

Fixed (5.15) = 1199 €

Joint scenarios: (from oc07 - oc09)

1st year-1200 / 2 + 1199 / 2 (fixed 5.15) = 1200 €

2nd year - 1570 / 2 (5.28 +1.09) + 1199 / 2 (fixed 5.15) = 1385 €

In principle I would recommend you do it 2-3 years but what we talked about .... I hope we knew where it is going to pull the subject ... ... "

Well it seems? Subidita of 326 euros. I am a bed for the ride to my business ...

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# 6, jonsf

June 24, 2007, at 18:33.

bErdaE hi jonsf!

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# 7, Albert

December 10, 2007, at 13:29.

The problem is that a mortgage of 25 million pesetas see it cheap and not expensive.
Anyone with a mortgage debts were € 1200, is chalao. The blame is on our pay

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# 8, Xavi

December 10, 2007, at 15:43.

"The problem is that a mortgage of 25 million pesetas see it cheap and not expensive.
Anyone with a mortgage debts were € 1200, is chalao. The blame is on our pay "

If the filth of the Euribor continues to climb, "I am the one who is chalao?"
Let's see if I'm going to have to stay at home folks forever, I bought the apartment 1 year ago and the mortgage to 50 years with IRPH, now I have changed to Euribor and have fallen 10 years and reduced the monthly fee € 17. ¿Find this kind of legal mortgages? 1 year ago Emecé paying 997 € to 50 years, which was 40% of salary common family, in one year I went up to 1346 €, this is logical? thymus go ....

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# 9, oreo80

December 10, 2007, at 19:30.

Xavi, That is not called thymus, it is called LO QUE NO SIGNS ONE LEERS. Make a variable rate mortgage is like playing the stock market, you can succeed ... or not.

Let it be clear that I also got a variable rate ...

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# 10, Xavi

December 13, 2007, at 12:27.

Oreo80 not read what is not a signature because at that time got to Mr notary sitting there that you read the terms aloud and leaves you to have a refresher before, the problem is the innocence of the first purchase, you're going with all the illusion and accept what you offer and tired of looking at Entity entity. The first purchase for me so, they will put some conditions to see if you are able to meet and you say "up to one year, if all goes well, you have a look," you do not know to which it relates, now it is equal to the remaining mortgage market. I think the most difficult thing is to start now taking a property and a mortgage already granted and to be complying can start playing, greetings.

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# 11, Hector

June 11, 2008, at 10:58.

LET'S SEE, I'M NOT CONCERNED AT ALL, IN THE DEBATE to maintain the SR SOLBES AND MR PIZARRO, it is clear BY THE SOCIALIST PARTY THAT IS VERY GOOD AND SPAIN TO THE FORECASTS WERE ONE OF PP tales to frighten AL Pais, SO WAS TALKING WITH RESPECT TO YESTERDAY SOLBES the rise in the EURIBOR, oil prices ETC, and I said no I am concerned that the VE NO PROBLEMS AT HOME FOR ANY SITE .... That reminds me to a friend who said,, MY The rise of diesel fuel NOT AFFECT ME, ME YOU ALWAYS PUT THE SAME TO THE TANK 50 EUROS SUBA SO WHAT YOU WANT, NOT FEED YOU PUT MORE THAN 50 EUROS ARE WELL .. SPAIN ...

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# 12, sober

July 18, 2008, at 12:51.

Greetings, well then that if the increase be good for the economy but not for me XD. Already seriously. In my because I have no problems with the Euribor, but not because I have a lot of money XD if not quite the contrary, I already had problems for months and now is not that good, but if better than before.
My situation was overwhelming and the 20th of each month was peeling. I decided not to look too confident of these companies mortgages, loans, etc ... reunification
The truth is that despite my mistrust, everything was better than expected. As said now is my situations more and sleep better off at night. So, if someone is interested in the web is in mortgages vizcaya although its coverage is nationwide.
Hopefully you make the service that made me me. Good luck and see you soon.

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