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Press release 15. 17th June 1998

On 16.6.98 there were reports of rising inflation....

Storyline: Why should mortgagees Pay for the economic effects of windfalls?

The scenario
Cause
eg If Nationwide converts windfalls will help to overheat the economy.

Effect
A flood of money will chase consumer goods and inflation will increase. Imports of items such as electrical goods will also rise to meet the demand

The Remedy: (Often now) the response to this is a increase in interest rates by the Bank of England.

Why this is unfair! Mortgages become more expensive; but those who are penalised and forced to compensate for the overheating of the economy in this way are not always those who have benefited from the windfalls.

Press Release by Bob Goodall Tel 01727 84737
Co-ordinator "Save Our Building Societies" campaign