Punish savers and make them spend money - The Times

SarahNeedle1872

I for one will certainly not be spending all our money on stuff we don't need.... apart from anything, OH is the one that does all the spending!

Once debts are paid, I will be saving, regardless of what the goverment wants/economy needs.....even if it is 'under the matress'. Might be a good time to invest in shares of safe makers though!

Kenny4315

At the present moment there is nothing to invest in and make a decent return.

Savings - new rates are rubbish
Shares - too unstable don't know where the next failure lies
Property - 15% more to come off (total from peak down 35%)
Paying off mortgage, pointless if on anything that tracks the BBR

I think that Mr Clown & Hs Darling are hoping that people just say KCUF it I may as well just spend my savings, not a very wise long term strategy but with Mr Clown & Hs Darling it never is.

stephen163

0% Interest Rates + Tax on Savings = A run on the banks plus a 10,000% increase in sales of home safes.

darktrader

"Spenders" and "Savers"
I, like all of us, spend money every day. I spend what I can afford, and save a percentage of my salary every month. I have done this since I started working and nothing that Brown nor any Economist says will change my outlook. (I, unlike politicians, am in this for the long run.)
Even if they cut Interest Rates to zero I will still keep a large amount of easily accessible cash as part of my Savings/Investment spread. Better to have £10K cash earning nothing at all, being reduced in real value by inflation than have a debt of £10K that I am paying interest on.
The more Government (and some Economists) try to get people to spend money, the more foolish they appear, as those living on benefits are unaffected by interest rate cuts and those of us sensible enough to have savings will continue as we always have and live within our means.

1echidna

'Quantitative easing' and the resulting inflation, with interest rates lagging (to protect hard working families so that they retain their jobs and can more easily pay their mortgages) will accomplish the same thing. It would be a tax on savings.

neverdespairgirl

nickmason wrote: »

this makes me waver a little. Kaletsky is a good economist.

He said in that article, "my hunch is that the cut will be at least a full percentage point, to 1 per cent, or even below."

louiser123

i am in a not too bothered situation here, not because i dont care because i have both savings and a mortgage, what i am loosing in interest on my savings i am gaining on my mortgage.
i was paying more interest on my mortgage then i was gaining, it sort of turned around a bit now so i would say im not loosing anything, it is actually making it easier to overpay my mortgage, =less interest long term, while still gaining interest on my savings. i have a relitivley small mortgage compared to many £42000, on a house now worth 120k, ok it was worth 150k in 06/7 but im not planning on selling so im in a win position

so im in the middle on the fence as it were!!