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MSE News: Savers lose nearly £18 billion a year
Former_MSE_Helen
Posts: 2,382 Forumite
"Record low interest rates and multi-billion-pound emergency measures from the Bank of England are hitting deposits ..."
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Comments
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Savers are losing money from low interest rates? Wow I'd never have guessed!
I wonder how much of the 18 billion is saving mortgage holders money and how much is increasing banks profits?If you don't like what I say slap me around with a large trout and PM me to tell me why.
If you do like it please hit the thanks button.0 -
QE has failed so what do they do? Pump in more money. Disgraceful0
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Got to look at it both ways.
Do the government and the economy have more to loose by pumping in created money? or not?
If the markets tank, and our borrowing costs go up do we as consumers loose as well?
Yes, it may be £18Billion lost now, but the consequences of not doing it far outweigh the small sacrifice in savings some have to burden, even if it is to keep market confidence.
This site is mostly Money Saving, so negative feedback on this news will be generated, but keep a open mind as the economy could probably do with this now, economic salvation through growth is the best option, this helps that.0 -
But why does the government give the created money to the banks, through whose greed and incompetence we are all in this mess?
The idea that the banks will then use it to provide loans to business simply doesn't work.
Surely a better solution would be to use it to give savers a higher rate of interest, so as to stimulate demand in the economy for the goods and services businesses provide? At the same time, this would encourage further saving rather than the disincentive resulting from the present policy.0 -
This government don't like savers, they want everyone to spend and go into debt with borrowing on loans and mortgages to feed the economy.
But the banks don't lend, not to everyone, so who wins. No-one0 -
MoneySaverLog wrote: »This government don't like savers, they want everyone to spend and go into debt with borrowing on loans and mortgages to feed the economy.
The government loves savers, as long as they "save" in a house.0 -
Exactly, the real policy does not want saving, make saving unattractive, but to spend prvate money, even with new debt, spend to keep the banks afloat with new borrowing, spend to keep the economy afloat while cutting public spending and services. Keep the debt merry-go-round as long as possible to put off or if very lucky (looking bad with new recessions and QE a failure to stimulate) mitigate the eventual property bubble collapse.0
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MoneySaverLog wrote: »This government don't like savers, they want everyone to spend and go into debt with borrowing on loans and mortgages to feed the economy.
But the banks don't lend, not to everyone, so who wins. No-one
In particular the Lib Dems don't like savers because people who have a bit of capital savour of being "privileged".
In addition the focus group jockeys that Cameron and co listen to so assiduously are probably telling them that there's more political capital to be had in protecting the younger generation -- those with mortgages and other debts -- than there is in also looking after the older generation trying to live off pensions and savings income. I happen to think that's an incorrect political conclusion, but I suspect that it's the conventional wisdom in Downing Street.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
Robin_T_Cox wrote: »But why does the government give the created money to the banks, through whose greed and incompetence we are all in this mess?
It doesn't. With QE, the central bank (BoE in this case, ECB for Europe) buys financial assets from the banks to put more money into the economy. The BoE then retains these assets and ISTR that it now holds 1/3rd of UK government gilts!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
QE isn't very effective, though doing nothing might be worse. eroding the real value of savings isn't pretty, but i'm much more concerned about the consequuences of high (especially youth) unemployment.
the government should be spending whatever is necessary on infrastructure, apprenticeships, and education, to get the economy going. and perhaps imposing one-off windfall taxes on the very rich to shore up public finances.0
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