BoE urges savers to spend spend spend to save the economy!

C_Mababejive

http://www.dailymail.co.uk/news/article-1315648/Band-England-tells-Britains-22million-savers-start-spending-boost-faltering-economy.html

Scum...

They made the problem,now they want you to blow your life savings to bail them out..and they will try to make you do it by slashing rates and more QE

iltisman

OK then I will buy gold and Forex.

joyfull

Unbelievable.

Two minutes ago we were told to save for our old age.

Under the mattress it goes then....

glitter123

joyfull wrote: »

Unbelievable.

Two minutes ago we were told to save for our old age.

Under the mattress it goes then....

I agree. I thought we had been told we weren't saving enough and were faccing an impoverished retirement. :wall::doh:

le_loup

What on earth do you guys think that interest rates at 0.5% are all about?
What on earth do you think the economy needs right now?
How come you're surprised at what the BofE man said, do you not read the news?

joyfull

le_loup wrote: »

What on earth do you guys think that interest rates at 0.5% are all about?
What on earth do you think the economy needs right now?
How come you're surprised at what the BofE man said, do you not read the news?

I'm no economist so forgive my ignorance.

The economy might need me to spend my life's savings. But I have to look after MY interests, which right now, unable to ever work full time again, means saving as much as I can to provide for the remainder of my life.

mintedmatty

le_loup wrote: »

What on earth do you guys think that interest rates at 0.5% are all about?
What on earth do you think the economy needs right now?
How come you're surprised at what the BofE man said, do you not read the news?

I read the news, watch the news, read the internet etc etc etc. This whole mess wasnt created by me? I was raised by my parents well and told clearly many times, if i wanted something? I had to go out, get a job and earn the money to have it? Ive never expected anything from any government or councils, I pay my taxes/council tax and expect my bins emptied and police on the street etc thats all (wishful thinking i know)

I save into pensions so I wont be poor when im old, I know what will happen though? somebody who saves naff all will end up getting means tested and end up with similar a amount? is that fair? I save a lot, pay my mortgage and have a comfortable life because I EARN the right to have it, if you honestly think myself and many others on MSE.COM will spend just because the government who helped create this fiasco in the first place says so, I think you maybe a tad wide of the mark?

Reaper

Harshly put by le loup but correct. The point of low interest rates is to discourage saving and stimulate the economy, so why the Daily Mail suddenly acts all surprised about it is a mystery.

joyfull wrote: »

The economy might need me to spend my life's savings. But I have to look after MY interests, which right now, unable to ever work full time again, means saving as much as I can to provide for the remainder of my life.

Actually it is possible to do both. Putting money in investments or a pension stimulates the economy. In theory savings ought to as well because banks lend it out again but recently they have not been very keen to do so, prefering to shore up their precarious finances instead.

datostar

Macroeconomics deals in big aggregates and its practitioners make big sweeping statements. Ignore him and do what's best for your individual circumstances. He (Mr Bean) does seem to have selected retired people whose savings no longer provide enough income for their needs, recommending that they dip into capital to tide them over. Possibly not a bad idea. Don't panic, Mr Mainwaring!!

philbostavros

Great idea BoE

I will unload (spend) all my assets to avoid having to pay for long-term (hopefully) care in my dotage.

When I get accused of deliberately avoiding these costs, I shall say I was instructed to do so by the BoE.

Yippeeeeeeeeeeeeeeeee

:rotfl:

le_loup

How strange that my comments should be misconstrued to :"it's all savers fault" and nor did Mr Bean. I never said anything approaching that. What I did say is it should be no surprise that the country needs people to spend in order to get us out of recession. Low interest rates are part of that mix. The fact that a senior member of our rulers should say that on TV is refreshing but people have been saying similar for two years. What do you think the temporary reduction of VAT was all about?
I saw the man on Channel 4 last night, what I hadn't realised was the the Daily Mail had worked itself up into another fit of righteous indignation about it ... nuff said!