What happened on 22nd June 2023 - with your comments in the Web

On Thursday, we've learned another grave news about British economic from National Institute of Economic and Social Research. 1.2 million UK Households Insolvent This Year as a Direct Result of Higher Mortgage Repayments. 

UK households are about to be hit by yet another shock as a result of the Bank Rate rising to 5 per cent, and by the end of 2023 more than a million households (4 per cent of all UK households) will run out of savings because of higher mortgage repayments, taking the total proportion of insolvent households to nearly 30 per cent (around 7.8 million), according to the latest research by the National Institute of Economic and Social Research (NIESR).

With the Bank Rate rising at their fastest pace since the Bank of England gained independence in 1997, millions of households will be affected by higher mortgage repayments.

A significant proportion of the population will see their savings wiped out because of the rise in interest rates and thus higher mortgage repayments. The largest impact will be felt in Wales and the North-East where up to 6 per cent of households are projected to be insolvent by the end of the year as a direct result of rising mortgage repayments.

Also, the analysis finds that the rising repayments in aggregate will wipe out 0.3 per cent of UK GDP, costing all households with mortgages a total of £12bn per year.

Redditors met this info with dismay. Some started calling to radical protests.

"Then the millionaires will swoop in and take all property and be even richer.

When do we march on the capital?"

"You will own nothing and you will be unhappy. All according to Sunak's masters plan."

"It's sad from a bunch of angles. On the one there's the genuinely unfortunate being fucked.

Then there's those with no money sense who borrowed the absolute max they could afford and are paying the consequences... Then there's the kids who through no fault of their own could be losing their homes."

"Vote tory this is what you get! 13 years of it after a 13 year run by Thatcher.

I'm screwed when my mortgage goes up and this recession the idiots are trying to purposely create happens but I look at myself as collateral damage in this lesson to any idiot that voted Tory.

Britain deserves this"

Also this day, it came to know that Bank of England could spring interest rate ‘jumbo hike’ today amid wage-price spiral fears.

Inflation didn’t budge in May, remaining at 8.7% despite supermarkets boasting of price cuts for certain food products. Core inflation, which strips out food and energy prices to create a less volatile picture of domestic inflation, rose from what was already a 30-year high to hit 7.1%.

David Bharier, head of research at the British Chambers of Commerce, said: “What started as a commodity price shock has now created a wage-price spiral.”

With both figures ahead of City expectations for the fourth consecutive month, they fuelled fears that the Bank of England will have no choice but to increase the pace of its interest rate hikes as it aims to bring inflation down to 2%.

 

Readers have been skeptical about this data.

"There is no wage spiral. Wages are beyond stagnant when compared to inflation. Corporate greed, barriers to trade caused by brexit combined with the long term unravelling of supply shock courtesy of covid and the ramifications of the war in Ukraine are causing inflation. Raising interest rates is just going to cause a strengthening of the pound vs other currencies which may make imports sliiiightly cheaper but is going to be real unpopular with homeowners and anyone trying to export goods."

"I'm doing my bit to combat inflation by getting shite below-inflation pay rises. Come to think of it, I've been combatting inflation for years now..." - "Shout out to all my brothers and sisters combatting inflation since the day they entered the work force ✊"

"I always found the tory line in this climate hilarious.

"We're going to create a high wage economy"

"Can I have more pay then?"

"NO, and I'm going to make it as illegal as I can for you to go on strike for more pay too"

"But you said high wage economy?"

"Yeah, just not YOUR wage, now fuck off back to your sweatshop""

 "Record profits from greedy corps are fuelling this, yet its your mortgage that's going to increase. Enjoy."

Also on Thursday, British Heart Foundation claimed that Britain has seen an extra 100,000 heart attack and stroke deaths since the pandemic. 

Almost 100,000 people have died needlessly from heart attacks and strokes since the start of the pandemic, a report revealed yesterday.

The British Heart Foundation said continuing disruption to the NHS and the fallout from Covid has left the country in the 'grip of a heart and stroke care emergency'.

Its analysis of official data found there have been more excess deaths involving cardiovascular disease (CVD) than any other condition – with 96,540 since March 2020. 

 

" it seems obvious that most people sat indoors completely inactive since the beginning of covid, including myself, its got to have a huge effect."

 

"There was suggestion during covid that the illness itself causes a lot of, not necessarily, noticeable damage to the body. Long term lung damage and heart damage which may lead to issues in the future. Wonder how much of it could be related to that."

 

"It's COVID itself that increases this risk. Also increases the risk of diabetes, which itself increases risks of many other things. It's quite the disease. Even more reason to be careful of the lifestyle risks for these conditions."

 

"Catching covid messed with my heart big time. I’m fairly healthy and active, but for a few month after covid I struggled going up stairs. Was awful. A year and a bit on and I’m nearly back to normal. I wonder if covid is also a factor"