0.5% Cut

nilrem_2

cloud_dog wrote: »

Why on earth are you whinging.......... forget the one / two percent interest rates, house prices are falling through the floor - if this isn't a buyers market then it never will be. Aren't you going to thank anyone for that.......... hmmmmmm

Have you not considered that many people actually live off savings interest, to them it is what they live on, if because of very low interest rates you have very little income it does not matter how cheap houses are or how much of a buyers market we are in they simply do not have the money to spend!

People keep harping on about how wonderful it is and how prices are falling but the essential things that we must have do not go down in price, things such as water rates, council tax, electricity and heating and food has not decreased much either.
I wonder how many of us will get a reduction in our council tax this year because of falling prices, our council has just announced an increase to this already sky high tax!

amistupid

smalandcute wrote: »

great thanks mr brown, mr darling and marvin king,

"I heard it through the grapevine" that it's Mervin not Marvin.

Berty

House prices round my neck of the woods has only dropped a small amount. People are in no rush and quite a lot who were selling have removed themselves from the sale.
Trouble is its still impossible round here for a single and many couples to find a house if they are first time buyers. A 3 bed semi was 3 years ago selling for £300000 now they are selling £287000. A few are under and there are the odd bargin if you want to call it that. Crazy times.

ScarletBea

a7man wrote: »

If they didnt do this the economy would go into turmoil,

Oh yes? Why?
Please justify.
You do know that this rate doesn't have much to do with the rates that banks use between themselves, don't you?

It's also not that linked to business loans...

cloud_dog

nilrem wrote: »

Have you not considered that many people actually live off savings interest, to them it is what they live on, if because of very low interest rates you have very little income it does not matter how cheap houses are or how much of a buyers market we are in they simply do not have the money to spend!

People keep harping on about how wonderful it is and how prices are falling but the essential things that we must have do not go down in price, things such as water rates, council tax, electricity and heating and food has not decreased much either.
I wonder how many of us will get a reduction in our council tax this year because of falling prices, our council has just announced an increase to this already sky high tax!

Absolutely, and if you want to expand the scope of my response arbitrarily to cover the worlds ills and every unfortunate in the world well, feel free.

Alternatively, you could try to actually read the post and my response and consider it in the context in which it was actually given. Whilst I appreciate my reply was somewhat……. curt, in reality what has this person really got to complain about?

LesU

a7man wrote: »

I'm talking about the future, not the past. Interest rates used to be good, now they arent so equities etc are much more attractive.

Ah yes, the future, the grey area where hindsight loses ground to intelligent guessing. Property was quite attractive 2 years ago.
Equities still look a little shaky so I think I'll move my money into 'etc'.

StrawberryJam_2

too many people moaning about savings? you still have them!!!

Stop being greedy and expect lots of interest added to your account when the world has changed, get with the times! time for a re-think!

you have the capital in your bank and as far as i am aware no banks have taken any of your money!
I feel sorry for those with pensions, although if you are of that age, it is your generation that failed to teach the next generation, and in turn the following generation is being hit.

Nothing in life is certain, I thought everyone knew that?

Hungerdunger

StrawberryJam wrote: »

too many people moaning about savings? you still have them!!!

I agree. There are two groups of people who are being classed as the "innocent victims" of this recession. The first are the ones who depend on interest from their savings to live on (and I'm one of them), the second are the thousands of people who are losing their jobs each week through no fault of their own.

I know which group I'd rather be in.

john_s_2

lisyloo wrote: »

With pension credit you are penalised at a rate of 10%.
For example if you have £500 in savings (above £6K) then this is assumed to provide £50 in income.
This has long been ridiculous not just recently but I think it's meant to be punitive rather than realistic.

Back in the early 90s I worked in a DSS office dealing with Income Support. We received advice from the top about this point and it went something like this:

The £1 deduction for every £250 above £3000 [as it was then] represents what is considered a reasonable amount for someone to spend out of their savings every week. It is not supposed to reflect the amount of interest those savings might earn.

juicyjude

Well a lot of people hungerdunger come under both of those criteria, my husband and I being such, so a double whammy there!!!