Blame the Banks or The Government?

grey_gym_sock

atush wrote: »

Stop blaming and take responsibility.

For over borrowing in the good days, for underspending in the bad.

For not being a borrower with the lowest rates ever, my mtg savings have outdone my lower interest income.

for saving in cash, instead of other assets like equties which have done well.

yeah, but what about the emotional damage?

grizzly1911

atush wrote: »

Stop blaming and take responsibility.

For over borrowing in the good days, for underspending in the bad.

For not being a borrower with the lowest rates ever, my mtg savings have outdone my lower interest income.

for saving in cash, instead of other assets like equties which have done well.

What about those that aren't so financially savvy who repaid the mortgage smany years ago? The elderly who don't want the risk associated with equities/bonds/funds etc.?

Glen_Clark

atush wrote: »

for saving in cash, instead of other assets like equties which have done well.

are you serious?
thats like saying its the victims own fault when they get robbed

talexuser

Archi_Bald wrote: »

What do you want the government/BoE do as an alternative? Let the country go bankrupt in the short term?

There is an argument we would have been better off in the long term following the Iceland example. They put bankers in jail, defaulted for a time, paid off the IMF, but are now back in growth with a better relative performance than us since the crunch?

merlingrey

atush wrote: »

Stop blaming and take responsibility.

For over borrowing in the good days, for underspending in the bad.

For not being a borrower with the lowest rates ever, my mtg savings have outdone my lower interest income.

for saving in cash, instead of other assets like equties which have done well.

To sum up everything you said we can say this in regard to others: "woulda shoulda coulda"

So the whole world would have done well if it had just done what good old squeaky clean atush had done, and had his same personal circumstances, and similar employment position, cash position, education etc...

Yeah silly population for not being educated in economics, banking, politics and working for companies that could go bust. And borrowing money when they needed it and failing to spend because they don't have it and can't get it.
And of course not being able to be like Nostradamus.

Old_Slaphead

dunstonh wrote: »

No point being frustrated. In most periods in history, cash has not kept up with inflation.

Average rates haven't kept pace but if you're prepared to actively manage your savings accounts it's not, until now, been that difficult to beat.
ie I have a Northern Rock FR account still paying 7% (unfortunately it matures next month !)

Chjaka

talexuser wrote: »

Say LARGE amounts of instant cash can only get 1.2% after basic tax, but inflation is 2.8%, a ratio of twice or more?

With two 123 Accounts (£40,000 @ 3.00%), four Flexdirect Accounts (£10,000 @ 5%) and six vantage accounts (£30,000 @ 3%) you can easily keep up to £80,000, instant access at an average interest rate of 3.25% (2.6% after tax).

You'd be just below the current 2.9% rate of inflation but it's not bad in terms of damage limitation.

Old_Slaphead

Chjaka wrote: »

With two 123 Accounts (£40,000 @ 3.00%), four Flexdirect Accounts (£10,000 @ 5%) and six vantage accounts (£30,000 @ 3%) you can easily keep up to £80,000, instant access at an average interest rate of 3.25% (2.6% after tax).

You'd be just below the current 2.9% rate of inflation but it's not bad in terms of damage limitation.

Net payout on 123 accounts is 2.58% after charges. You don't get 3% of full £20k. That reduces your net figure to 2.43%.

Also you have to keep moving the money around the accounts ie Nw +£1000pm, Vantage +£1,000pm Santander +£500pm to qualify.

Now how would you manage it if you'd say £250k ?

talexuser

Chjaka wrote: »

With two 123 Accounts (£40,000 @ 3.00%), four Flexdirect Accounts (£10,000 @ 5%) and six vantage accounts (£30,000 @ 3%) you can easily keep up to £80,000, instant access at an average interest rate of 3.25% (2.6% after tax).

You'd be just below the current 2.9% rate of inflation but it's not bad in terms of damage limitation.

OK, but 80 grand is not much compared to a pension or annuity after a lifetime's work, at least for some?

merlingrey

The rate of inflation is higher than 2.9% people don't factor in everything as a whole, supermarkets and food manufacturers have been reducing packaging sizes yet charging the same, many products have shrunk in size as much as 25% so that's 25% inflation. Supermarkets cutting offers or getting crafty in moving around promotions.

I'll show what CPI is:

This is every item on the CPI list, but they take things out and put new things in so it is rotational and can be easily manipulated:


https://docs.google.com/spreadsheet/lv?key=0AonYZs4MzlZbdEhFdGMzcU1BanpmaW1pSGxIYkRhZFE


On the foods list they could just go round and buy basics if people are buying basics ( or not tell us) and the other items like laptops and tvs are not things people buy everyday. It includes woodscrews and taps, how often do you buy woodscrews and taps? Just as example.