From The Times: SOS - save our savers, unfairly punished

ChuckCash

Not a whole lot we don't already know, but interesting nonetheless:

http://www.timesonline.co.uk/tol/comment/columnists/william_rees_mogg/article5586596.ece

My personal opinion: Gov should be trying reduce this huge debt mountain, not encourage more of the same. Buying bad debts from banks does not remove those debts, but transfers them from private to public ownership. Also low interest rates does nothing to encourage people to pay off debts - quite the opposite.

I'd like to see a system whereby people are enticed to pay off debts wherever possible, every bit helps. For example those who got caught in the housing bubble should look at downsizing in order to reduce their mortgage debt. Higher interest rates would/should be their inspiration, and also would be good for the savers, who appear to be either angels or scums of the earth, depending on which side of the fence you reside.

Paul_Herring

depending on which side of the fence you reside.

Well quite.

The downside to *everyone* saving (or paying off debts) instead of spending (or racking up more debt in some cases) is that the economy goes down the pan.

At least that's what the government and some financial type-bods would have us believe.

RayWolfe

ChuckCash wrote: »

and also would be good for the savers, who appear to be either angels or scums of the earth, depending on which side of the fence you reside.

And your evidence for that assertion is ... ?

Paul_Herring

And your evidence for that assertion is ... ?

Probably a bit hyperbolic, but it's not too far off attitude of people who'd rather we spend our money rather than hoard it.

Look at the attitude to banks who are refusing to lend despite 'having money to do so' and instead hoarding it to help their balance sheets- it's the same sort of thing.