Bank of England warns of the consequences of thrift

inspector_monkfish

An attempt by British consumers to rein in spending after the harsh lessons of the recession could limit growth and therefore depress household income further, the Bank of England warns today.


http://www.telegraph.co.uk/finance/economics/6212215/Bank-of-England-warns-of-the-consequences-of-thrift.html

Lotus-eater

You can only spend if you can afford it, everyone who can afford it that I know, is still spending.
Yet some are also worried with cuts and jobs looking a bit dodgy in their sector, who in those circumstances wouldn't stop spending and cut back?
I agree with what they are saying, but it can't work, there has been too much spending in the past, it hasn't been a normal level of spending and can't continue without lax credit and taking money out of ever increasing house prices.

JonnyBravo

inspector_monkfish wrote: »

An attempt by British consumers to rein in spending after the harsh lessons of the recession could limit growth and therefore depress household income further, the Bank of England warns today.


http://www.telegraph.co.uk/finance/economics/6212215/Bank-of-England-warns-of-the-consequences-of-thrift.html

Ah yes the old paradox that what is good for the individual isn't necessarily good for the population as a whole.
Tough.
I'll continue to think of what's best for me thanks.
But I would appreciate it if a few of you continued to run up some more debts to help me along......

actually I'm in the wrong forum.....

I'm just popping out for a while.

lostinrates

Lotus-eater wrote: »

Y
I agree with what they are saying, but it can't work, there has been too much spending in the past, it hasn't been a normal level of spending .

This is pretty much how I feel too. we are actually spending more than we have for some time personally, but it would have been nice to have read similarly steely warnings BC (before crunch) about the levels of debt and elevated spending.

Heyman_2

A little bit short-sighted by the BofE - of course people are going to limit spending if they have to make savings because their local bank won't lend them any money. Applies to business as well.

thriftybabe

inspector_monkfish wrote: »

An attempt by British consumers to rein in spending after the harsh lessons of the recession could limit growth and therefore depress household income further, the Bank of England warns today.


http://www.telegraph.co.uk/finance/economics/6212215/Bank-of-England-warns-of-the-consequences-of-thrift.html

Maybe if Labour had done this when things were going well we would not be in the flippin mess we are in. Seriously I am p****d off today. All these cuts are getting introduced and higher tax rates are getting talked about. When the country was doing well this is what should have been done. They should have bloody saved like the rest of us who knew good times dont last forever! Now recovery will be hindered due to all the higher taxes that we anticipate that will happen!

Sorry I am a bit annoyed this morning! (must calm down and go and get a coffee and spend £5,000 on ebay to help the country)

PasturesNew

I just spent £150 and I didn't even have to get dressed .... lord bless the Internet. Although it was a hosting bill, nothing shiny.

lemonjelly

I think Lotus Eater sums it up quite well.

Plus, if I'm spending, I can't pay down all my creditors - surely this is something I should be prioritising? Is the BoE telling me not to pay my debts? Or to make minimum payments instead?

I feel the majority are having to prioritise what they are spending their hard earned on. People are still spending - but mainly on essentials.

The recent history of spending has been mainly on the "never-never". Problem is, it is now "now or never" & those bills have to be paid before we start splashing out on luxuries again.

I fear it will not be a good Christmas for retail.

thriftybabe

I agree Lemon Jelly. I think Christmas will be hard on retailers. We have reduced everyone's Xmas amount this year and I am sure many more will be doing the same!

IveSeenTheLight

lemonjelly wrote: »

Plus, if I'm spending, I can't pay down all my creditors - surely this is something I should be prioritising?

I agree, you should prioritise oon reducing debts before spending needlessly elsewhere

IveSeenTheLight

thriftybabe wrote: »

I agree Lemon Jelly. I think Christmas will be hard on retailers. We have reduced everyone's Xmas amount this year and I am sure many more will be doing the same!

I think most people have for years overspent on Christmas.
Probably retail driven.

Anyone remember the advert (can't remember what for, bread I think) where the delivery boy wanted a racer bike for christmas and the father told the son they couldn't afford it, maybe next year son he said.

The joy when the bike was in the hallway was clear to be seen.

We need to go back to having one special present that means something instead of having so much the kids don't know what to play with.