It's Time Savers Took Their Medicine

mcfisco

grizzly1911 wrote: »

I fail to see why savers should take any hit , perhaps you would explain your reasoning.

Is it just that they have got something and you haven't?

Of course it is, what the point in trying to get money from people that don't have any? You can send all the demands and invoices you like but if they ain't got it .............

The Cypriot scheme is brutally beautiful, the gov get all their money without any chasing and almost immediately.
Glad I'm not getting hit though

chewmylegoff

wotsthat wrote: »

It was Alistair Darling - he decided to cover all depositors to the tune of £3.5bn. £2.3bn of that is owed to the exchequer by Iceland under the terms of their deposit guarantee scheme and they won't start paying it back until 2016 and it's interest free too!

I don't think you can speak for the other depositors - doubt most most considered the risk and that includes the financial 'wizards' at a number of local councils who were drawn in.

Pretty sure that local councils were actually required by central government rules to put their cash reserves in the highest interest bearing accounts that they could find at a uk institution (which included uk subsidiaries and branches of overseas banks).

I remember looking at the CDS spreads on icesave in 2007 or early 2008 and thinking "no thanks" - my money went into HSBC at the time. I caused a rather awkward moment a couple of years later when I remarked to my manager that anyone putting money in icesave deserved to lose it as it was clearly a massive risk. Of course it emerged that she'd put all her money in there.

My bonus wasn't great that year.

Thrugelmir

wotsthat wrote: »

I wasn't tempted by high saving rates in Northern Rock or MSE favourite Icesave but had to protect the deposits of those that were - doesn't seem entirely fair especially as we're probably only talking about a few percent in the event of a bank failure.

The bail out of the savers is being funded by principably by a levy on mortgage borrowers (via the FSA levies. Doubt many realise.

Mortgage rates are around .25% higher than they would been to compensate.

lippy1923

I'm really starting to wonder why people bother to save anymore
Seems very harsh to have saved up a tidy sum for a bunch of ***holes to just snap it up over night.

Think I'm starting to see why so many people live like there's no tomorrow. I might have to start thinking a bit more that way.... massive wedding for me

money_maker_2

Totally agree. Why should the savers have to pay up when they have been depriving themselves of luxuries in order to save in the first place? Spend it all Lippy!!

Thrugelmir

lippy1923 wrote: »

I'm really starting to wonder why people bother to save anymore
Seems very harsh to have saved up a tidy sum for a bunch of ***holes to just snap it up over night.

Perhaps the extended economic boom was an illusion. Now the clock is being turned backwards. The outcome appears uncertain. As debt levels are cut. The interlinking of global capital markets is being pulled apart. As banks turn to home markets reducing international exposure and repatriating capital. Question is who ends up with the wooden spoon.

Jennifer_Jane

Instead of the "haircut" on savings, which is an abomination, how about a forced loan to the government, such as that done by South Africa in previous years. I cannot remember the exact details or why it was done, even, and Google hasn't been helpful.

All I remember is that taxpayers had an additional levy on their income tax which was repaid after several years with interest.

I don't remember there being any quarrel with this and it was a pleasure to receive the money a few years down the track. Seems like a softer option to tide a country over the difficult times.

BobQ

Perhaps those that think a levy on personal savings is fair should also indicate their support for the compulsory (a) confiscation of a % of shares owned by individuals and pension funds (b) increase in the value of all loans, with the additional interest raised given to HMT (c) charge levied as a % of its value, repayable on all houses when next sold?

BobQ

Jennifer_Jane wrote: »

Instead of the "haircut" on savings, which is an abomination, how about a forced loan to the government, such as that done by South Africa in previous years. I cannot remember the exact details or why it was done, even, and Google hasn't been helpful.

All I remember is that taxpayers had an additional levy on their income tax which was repaid after several years with interest.

I don't remember there being any quarrel with this and it was a pleasure to receive the money a few years down the track. Seems like a softer option to tide a country over the difficult times.

If they offered more index linked NS&I certificates they could raise quite a lot of funds

dryhat

"saving" or "putting a bit by for a rainy day" has been a prudent, sensible and even instinctive thing to do since the dawn of civilisation.

It really is strange that savers are now despised so much and even considered a threat to the economy.

It shows what a mad world we live in and how detached from reality some people have become.

Are we no longer human?