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Debate House Prices
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CPI hits 4.4pct
Comments
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why should savers be treated any different to borrowers?
borrowers know the risks of interest rates going up and so should savers know the risks of interest rates going down.
True.
I think what is "wrong", is that savers shouldn't have to see interest rates going down because borrowers borrowed too much / banks lent too much.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
If the borrower can't save up for something, they have the option of borrowing for it. If they do borrow the money, they have to expect to pay for the privilige.
Do you want asset prices and consumer spending to be supported at their current level? If so, I wouldn't be so moralistic about borrowing money.
The reason rates are low is to support the economy.0 -
some people believe if interest rates go up they can buy a cheap house.Degenerate wrote: »So stripping out the VAT rise, it would still be within the 1% tolerance band of the 2% target.0 -
RenovationMan wrote: »Actually there are hundreds of products. Just because you dont know about them doesnt mean they dont exist....
I can honestly say that I have seen a few, and I'm sure a few more do exist. Maybe you could point me in the direction of a few of the hundreds that are available. I'll forgive the childish use of. 30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
True.
I think what is "wrong", is that savers shouldn't have to see interest rates going down because borrowers borrowed too much / banks lent too much.
Where do you think the money needed to pay savings interest comes from exactly? Does it strike you as odd that rates were higher when people were borrowing more?0 -
Just done a bit of research to see if I can find these "hundreds" of inflation linked savings products. And the telegraph have come up trumps......
http://www.telegraph.co.uk/finance/personalfinance/savings/8397877/How-to-inflation-proof-your-savings.html
Not exactly hundreds though.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Where do you think the money needed to pay savings interest comes from exactly? Does it strike you as odd that rates were higher when people were borrowing more?
Aha !
It's like setting a mousetrap. Have you got some sort of software that searches for the use of the words "savers", "savings" or "parasite" ?
No it doesn't seem odd that savings rates were higher when people were borrowing more. They were borrowing more when interest rates were higher.
My point isn't that I demand > inflation rates on my savings, it's that the BoE/Government seem to favour those that do have debt. It's also about moral hazard - those that binged on credit being let off the hook. I don't want borrowers to suffer, I just want those that borrowed too much to have to pay the price. They should have known the risks when they borrowed the money.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
When Labour cut VAT the BoE used CPI falling to below 2% a reason to slash interest rates in fear of deflation. Now its convenient for the BoE to use the rise in VAT as a reason not to raise rate. Its either one or the other - it shouldnt be both.Why does it make any sense to strip out a tax rise?
We are measuring the increase in the cost of goods? VAT is part of that increase?0
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