It is Obvious

Chris Rick has got altogether too much to say

Lest they be forgotten

Posted by chrisrick13 on June 28, 2010

It is obvious: goldfish have a short attention span but long memories.

Do you remember two years ago when there wasn’t a credit crunch?  There was one really and had been one for a while, it was just that the effects had yet to surface.

What was in the news at the time?  It was consumer debt.  Long before we realised how much the government was borrowing on our behalf we had stomped out there and borrowed it for ourselves.  The level of debt that we are prepared to incur is affected by many factors.  The level of debt we can support is defined by the ability to pay the interest.  In the previous 10 years of low inflation our salaries had barely moved yet we had nearly tripled our personal debt and servicing burden.  There were plenty of people close to the edge as a result…they still are.  The credit crunch has been their big saviour with interest rates down to 0.5%.

This month, for the first time, a member of the monetary policy committee voted for a rate rise.

It is obvious: goldfish have a short attention span but long memories both of which are a lot longer than those that humans possess.

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