Hero to Zero....

I'm fully recovered from my bout of 'Man Flu' you'll be pleaseed to know. (Thanks to everyone for their good wishes). Unlike the economy and the interest rates which seem to be in freefall, plummeting to their doom ?

The Daily Mail (I'm not a reader by the way - It was in the Bakehouse Cafe at Findhorn, and I couldn't resist a read) reported some homeowners could see their monthly mortgage payments drop as low as zero this week.

The Bank of England is expected to cut interest rates to just 1 per cent on Thursday, bringing a windfall to those with interest-only tracker loans.

If it does, Cheltenham & Gloucester customers who took out a deal at 1.01 percentage points below the Bank's base rate will be paying no interest at all. For technical reasons, they will still have to make payments - 8p a month for a £100,000 loan - but the money will be refunded.

Those with repayment mortgages will need to pay around £333 a month on the same-sized loan.

When they have reduced the interest rate to zero and it still hasn't fixed the problem - what do they do then?

The crash will go into overdrive as soon as it's realised that all the government's headline grabbing manoeuvres with interest rates etc have close to zero impact on the dire state of the economy.

I've buried my head in the sand (not literally) and thought I'm too old to be worrying about all this. I simply cheered myself up with a hot chocolate and a double chocolate muffin.

Hope that you can do the same - many I fear will not, soon it seems we may have to print more currency, lets hope it does not go the same way as the Ugandan Dollar !

Keep Safe,

Mr Jackson.