Interst Rates Down again by 1%

tuggy12

Updated

New / Old Labour's Legacy

Private Pensions............................Knackered

Interest Rates................................Knackered

Inflation.........................................Knackered

Jobs..............................................Knackered

House Prices.................................Knackered


Gold reserves.................................Knackered


Exchange Rates.............................Knackered


UK Gilts.........................................Knackered
( Thanks to miserly Martin )

Immigration Control........................Knackered

World Peace.................................Knackered

Please feel free to add

ragingbass

I'm really not happy about the drop, but in terms of stimulating spending, it'll do a lot more than taking 2.5% off VAT!

Savers are obviously the big losers here. But for other people managing debts, savings and cost of living, if they look at the poor returns they'll get on savings then there's no real incentive for them to put away, so they'll spend the money instead. So goes the theory I guess?

Interestingly too, I've been put off investing too much in shares in the past (and luckily so if I needed the money right now!!), but this drop has made me consider it more seriously. The FTSE100 is currently about 2/3's of what it was a year ago and yes, it could go down more as we get into recession. But for a longer term investment I think the shares ISAs currently look a better investment than the cash ISA's. If more people think along those lines, the investment into the stock market goes up, and the FTSE recovers quicker. Or am I giving BOE too much credit in their thinking there?

roddydogs

Will the accounts now paying less than 1% , now charge for you to save as its now gone down another 1%?

Old_Slaphead

roddydogs wrote: »

Will the accounts now paying less than 1% , now charge for you to save as its now gone down another 1%?

No but it will do wonders for the sale of new mattresses

LongTermLurker

ragingbass wrote: »

But for a longer term investment I think the shares ISAs currently look a better investment than the cash ISA's. If more people think along those lines, the investment into the stock market goes up, and the FTSE recovers quicker. Or am I giving BOE too much credit in their thinking there?

I'd been thinking the same thing, that it may be worth people who have so much money in cash gently feeding some of it into longer-term investments. After all, if you have a decent wad, even (early years) pensioners don't need 100% liquidity. Of cource, no-one knows when the rise will happen.

apt

tuggy12 wrote: »

Updated

New / Old Labour's Legacy

Private Pensions............................Knackered

Interest Rates................................Knackered

Inflation.........................................Knackered

Jobs..............................................Knackered

House Prices.................................Knackered


Gold reserves.................................Knackered


Exchange Rates.............................Knackered


UK Gilts.........................................Knackered
( Thanks to miserly Martin )

Immigration Control........................Knackered

World Peace.................................Knackered

Please feel free to add

Tuggy, if you think the previous Conservative government's record was better in terms of interest rates, jobs, inflation, exchange rates, house prices, immigration control you're either a blinkered Tory who believes what is in the Daily Mail or have no accurate memory of the 1980s and early 1990s. As for world peace, having rejected Ken Clarke for the useless Duncan-Smith, the Conservatives were even more gung-ho over Iraq than Blair. Yes, Labour/New Labour have been a disappointment in many respects, but don't kid yourself that the Conservatives would be any better, especially with 'heir to Blair' Cameron and Boy George at the helm.

Old_Slaphead

LongTermLurker wrote: »

I'd been thinking the same thing, that it may be worth people who have so much money in cash gently feeding some of it into longer-term investments. After all, if you have a decent wad, even (early years) pensioners don't need 100% liquidity. Of cource, no-one knows when the rise will happen.

After Labour came to power on 2/5/1997 FTSE100 was 4519. It's currently, some 11 years later, 4100. Doesn't auger too well for long term growth does it (ooops forgot, these are extreme times which calls for extreme polices which are clearly the right thing to do to maintain stability - even at these low levels)

evenasus

apt wrote: »

Indeed, the government should really be asking wealthier pensioners for a greater contribution,

How dare you?:mad:
So you think pensioners should pay for the government mismanagement?

LGG wrote: »

if you have 100's of K sat in savings but because u dont want to spend any of it or u want to leave it to you kids

And why shouldn't we be able to help our children and grandchildren with our money that we have worked hard to save?
We spend money and save.

LGG wrote: »

after all if u have 100's of K in savings at retirement age you prob have a nice public pension aswell.

I feel there might be a little green-eyed monster talking there.
What about the considerable contribution deducted from peoples salaries for 40 years to earn this pension. Not everyone in the public service earns a huge salary either.

Thirty-eight years ago, we were a very young couple with a toddler and new baby with no money to spare whatsoever. We lived within our means though, never buying anything on credit. We had bought our very small new three bed semi before we were married and still living with our parents. Didn't have a fridge or vacuum cleaner. We had my parents old black & white TV and an old washing machine with a mangle that was given to us by friends of parents.

Don't anyone try and tell me we are lucky - we have worked for every penny.

Phew - rant over, feel better for that.

nilrem_2

Old_Slaphead wrote: »

After Labour came to power on 2/5/1997 FTSE100 was 4519. It's currently, some 11 years later, 4100.

It may be 4100 now but you conveniently forgot to mention how high it has also been during the last 11 years, for example 6554. Some people have made a lot of money in the city during the past few years.

Old_Slaphead

nilrem wrote: »

It may be 4100 now but you conveniently forgot to mention how high it has also been during the last 11 years, for example 6554. Some people have made a lot of money in the city during the past few years.

I've also not mentioned how low its been approx 3200 and a lot of people have lost a lot of money(nb actually the high was 6950).

I was simply saying that excl divs net growth over 11 years of New Labout Govt has been -10%. A terrible indictment of their commitment to improving living standards and the general prosperity of the country!!