Attention Savers.,...

HAMISH_MCTAVISH

DervProf wrote: »

Hamish, you are implying .

I'm implying nothing.

I'm asking a simple question, that you have not answered.

michaels

I obviously have to look back and question my beliefs if I find myself agreeing with Hamish but I was thinking of posting along similar lines about how the Govt should stop bailing out the savers.

<rant>Savers do not seem to realise that their savings are someone else's borrowings and if the banks had not been bailed out then it is the savers who would have lost out - even for sums below the old 35k limit would only have been as safe as the eventual guarantor, the Govt - and we saw what happened in Iceland when a govt tried to backstop bank liabilities many times the value of GDP.

So whining savers, each time you protest about the govt bailing out imprudent borrowers and banks just remember who's money it was at the end of the day that was protected.(/rant>

Sadly no one (except Hamish who doesn't really count) will get it

Happychappy

So you advocate the chav life ? spend spend spend and let the government bail you out when your old, don't save for old age, get it down yer neck lad and stuff the world, they owe you a living and will look after you

ummm interesting, and if savers do as you say, i.e. don't bother saving it ain't worth it, what state will the country be in, we are already creaking, but a few more million living off the backs of the few who work and save? .....last one out switch the lights out please, just off to the Aston dealers with my savings!

michaels

If I implied any moral judgement in my post it was unintentional.

DervProf

HAMISH_MCTAVISH wrote: »

I'm implying nothing.

I'm asking a simple question, that you have not answered.

OK, I don't personally know any low risk entities, business or individuals, for whom it would make commercial or financial sense to borrow your money at those prices. However, I am sure that borrowing money @ 7-9% is hardly loan shark territory. In fact, I do know someone who took out a car loan about 12 months ago at 7%.

If you would like that answer on a postcard, please let me know your address. I don't think Mr McTavish, Somewhere in Aberdeen would be precise enough.

bendix

HAMISH_MCTAVISH wrote: »

When inflation (and wage inflation) was generally in double digits, for the decades you'r referring to anyway.




Nor is the interest rate environment from the 60's to 90's. That was the highest rates in the 300 years of interest rate history, and equally abnormal.

Those decades are the only decades worth discussing in this context because they coincide with the first time in history of most ordinary working and middle class people owning their homes.

Whether you like it or not, the normal mortgage rate for most people who have had home loans over the last 40 years or so has been around 7-10%.

bendix

HAMISH_MCTAVISH wrote: »

No, I'm asking who you think is a safe risk to lend money to at 9% today.


....

The average household debt (excluding mortgages but including unsecured loans) in the UK is currently around £18-19k. It was precisely £18,324 in May 2010, so I think it's safe to assume that range remains accurate.

Given the bulk of that debt will comprise credit cards, retail finance and retail store debt, I think we can safely say that those people will be paying interest rates considerably higher than 8-9%

More like 15-18% in fact.

So there's your answer.

Graham_Devon

HAMISH_MCTAVISH wrote: »

So when you expect 5%, 6%, 7% returns on savings, you are expecting borrowers to borrow your money at 7%, 8%, 9%, etc....

Blimey Hamish, you are getting desperate.

Please don't let the elephant in the room get in your way.

The elephant is quietly tapping on your shoulder, and asking you how you can come up with such rubbish, considering only 4 years ago, you could borrow money from banks, for instance, Alliance & Leicester at 6.9%, and as a saver, you could get 6%.

How long can you ignore the elephant and simply make up your own scenarios to suit before the tapping on your shoulder has you annoyed and simply getting up and leaving the discussion?

BTW, try to find me a decent personal loan rate of below 7% at the moment.

Happychappy

Graham_Devon wrote: »

Blimey Hamish, you are getting desperate.

Please don't let the elephant in the room get in your way.

The elephant is quietly tapping on your shoulder, and asking you how you can come up with such rubbish, considering only 4 years ago, you could borrow money from banks, for instance, Alliance & Leicester at 6.9%, and as a saver, you could get 6%.

How long can you ignore the elephant and simply make up your own scenarios to suit before the tapping on your shoulder has you annoyed and simply getting up and leaving the discussion?

BTW, try to find me a decent personal loan rate of below 7% at the moment.

Psst....I will do you 6.5% for monthly cash payments :rotfl:

DervProf

Plenty of answers being forwarded.

Hamish, your postman is going to have a very full sack for you.