Why are savings rates on the floor?

Thrugelmir

Glen_Clark wrote: »

Britain is awash with cash - the Government has just printed another £375,000,000,000.

Without QE the broad measurement of money M4 would be negative. As banks deleverage and reverse 40 years of expanding fractional reserve banking to fund credit growth

Thrugelmir

CLAPTON wrote: »

A shortage of cash and REDUCED saving rates do not go together.

The reality is there is shortgage of credit worthy companies and credit worthy individuals wanting to borrow plus a too much mindless regulation which is why interest rates are so low.

Interesting view. Not one I've read about.

Given the state of some of the banks balance sheets even now. Mindless regulation isn't something that I would agree with either.

ColdIron

Just noticed on the HM Treasury website regarding the Funding For Lending Scheme:

Banks will be able to borrow during the 18 months from 1 August 2012 until 31 January 2014

So any hope I had of better interest rates by next April look to be dashed

http://www.hm-treasury.gov.uk/ukecon_fundingforlending_index.htm

talexuser

It does matter who you vote for! The left would nationalise everything and fund business directly by owning it, the right believes in small state, competition and entrepreneurship but funds business through printing money and channeling through the banks so they can have a cut of profits on the journey - the private enterprise way. :rotfl:

pqrdef

Part of the problem is that competition is working too well. Thanks to comparison sites and MSE, everybody piles into the account that's top of this week's charts, with the result that no bank can now afford to be top of the charts for long.

The race downhill will continue until somebody will sit at No. 1.

A bit of inertia used to keep the boat steady.

Glen_Clark

Thrugelmir wrote: »

Without QE the broad measurement of money M4 would be negative. As banks deleverage and reverse 40 years of expanding fractional reserve banking to fund credit growth

Surely if there were less money available interest rates would have risen, not fallen?

Glen_Clark

talexuser wrote: »

It does matter who you vote for! The left would nationalise everything and fund business directly by owning it, the right believes in small state, competition and entrepreneurship but funds business through printing money and channeling through the banks so they can have a cut of profits on the journey - the private enterprise way. :rotfl:

except that Britain does not have a left wing party any more

gadgetmind

Glen_Clark wrote: »

except that Britain does not have a left wing party any more

Any party that goes for "tax and spend" slots into that category for me, " and currently even the con/lib alliance is falling into that trap.

melbury

[QUOTE=Linton;5753621
Edit: Why is the word i-n-v-e-s-t-m-e-n-t-s regarded as obscene? Seems strange for a money management site.[/QUOTE]

I had exactly the same problem the other day with the word
s-c-a-r-e-m-o-n-g-e-r-i-n-g - totally bizarre:)

Sstripey

Linton wrote: »

Edit: Why is the word i-n-v-e-s-t-m-e-n-t-s regarded as obscene? Seems strange for a money management site.

Presumably there's a literal inferred meaning of putting on clothes!