The Federal Open Market Committee (FOMC) minutes from June 17-18th were released on Wednesday this week. If the US figures continue to be as "good" as they have been, then they are going to reduce "asset purchases" (quantitative easing) following the October meeting. Some US commentators, including Bloomberg's news operation, are concenrmed that we're all getting complacent about the risks of borrowing (and lending).
Sir Charlie Bean said it would be "reasonable" to expect borrowing costs to return to pre-recession levels in the long term – between five and 10 years.
There's a similar pattern of complacency and concern about complacency on this side of the pond. There have been several statements made in the UK financial press this week that savings rates at are at their lowest-ever point, and that the financial conduct authority would like to intervene because savers with old accounts are getting terrible rates, whilst new savers get a better deal.
Last month, the governor of the Bank of England Mark Carney warned that an interest rate rise is going to happen sooner rather than later. This news hit the large UK homebuilders and has led to an increase in two-year fixed-rate mortgage rates this month. And outgoing deputy governor, Sir Charlie Bean, spoke with the clarity and the fearlessness of a valetudinarian, when he said it would be "reasonable" to expect borrowing costs to return to pre-recession levels in the long term – between five and 10 years.
So what does this mean for crowdfunding? Well now there's a question. Our friend Chatwood may have an opinion on that.