Prudent savers being punished - reply from governor boe office

bowlhead99

It's surely not a surprise to you, because you believe bankers to be evil

It is only an 'implication' though, because it's a manager telling his subordinate to do something because they're under serious pressure to get their reported LIBORs lower, not that the government or BoE were explicitly telling them to fake the LIBOR. Sometimes unscrupulous managers will bend the truth to get staff to do something. Like a parent running short of ways to control their kids' behaviour might say you better do this because Father Christmas is putting serious pressure on me to improve your behaviour, he is threatening to not visit this year. It is bending the truth to coerce the child.

It is like - companies might be under serious pressure from their owners or government to improve reported profits or productivity; that doesn't mean the correct course of action is to fake the reports of profits or productivity, or that the shareholders are demanding for you to do that. But an internal solution might be to create fake reports.

Anyway, it's a good thing we get to hear about banker fraud. Fraud and dodgy dealings happens in lots of places where there is money swilling around. In the recent cases, banks have paid out millions or billions in fines, and executives have gone to jail, and systemic improvements have been made (for example, as the BBC article mentions, BBA Libor was not at the time a regulated rate).

So on top of the £100m Lloyds fraud last week

There was no £100m Lloyds fraud last week. Ten to fifteen years ago there was some dodgy business at HBOS in Reading. In February some people were jailed for it. Lloyds who later bought and bailed out HBOS (which was something that they did a good while after the dodgy dealings that happened more than a decade ago) have written off £250m of bad loans and last week said the compensation scheme being put in place could cost another £100m.

cloud_dog

Darn you bowlhead99.....facts, facts, facts.... That's all you bring to the party. It sounded so much more.... 'dirty' before your post

ColdIron

Facts schmacts. You can prove anything with facts

ThinkingOutLoud_2

Except that truth would remain without facts. And in some people's view conviction can exist without trial. But then those types also have a low interest rate in adapting ;-)

HUMBUG

So now savings has fallen for the 3rd year in a row because people are raiding their accounts to pay for necessities (probably pensioners who just get the state pension, like my father), The piddly rates since 2008 caused by manipulating interest rates by incompetent QE mad Carney & Co will deliver us into the worst recession in living memory. The QE billions is a debt we all have to pay back, mainly the poor while the rich bankers rake it in. With no savings to lend to businesses , they will have to massively raise interest rates to tempt saving again , otherwise growth will stagnate and businesses will no longer take on extra employment. Plus interest rates will impact existing companies that have borrowed to expand , who will then need to make people unemployed to pay off the debt. BOE Carney will do a runner before the full damage he and his incompetents have done to us will become visible. But he can retire somewhere in luxury and peace, sipping his Pimms knowing that he has done a fine job protecting his rich exec banker friends.

coyrls

HUMBUG wrote: »

With no savings to lend to businesses , they will have to massively raise interest rates to tempt saving again , otherwise growth will stagnate and businesses will no longer take on extra employment.

So raise interest rates to stimulate growth? That's an unconventional theory.

HUMBUG

We are basically 'stuffed' because they have no choice if they want to stifle inflation and also get money for lending (without more QE which is a debt - we have to pay it back - it isn't free money).

Much of this was predicted by Max Keiser years ago and I agree with him 100% about Mark Carney.

https://www.youtube.com/watch?v=PvOvhjlqJ3A

https://www.youtube.com/watch?v=PyJj3uI9wWI

Look at the last half of the 2nd link and it looks like everything is coming to fruition. Interest rate increase, housing bubble burst, negative equity on your home plus savings vastly depreciated. The PERFECT ECONOMICAL STORM where money has been stolen from savers and the poor (via benefit cuts) to feed the banks who then lend to speculators. Max Keiser is correct , that basically the BOE don't need our money because all they will do is lend out to speculators at virtually 0% interest rates . This is an insane way to run an economy because the money is not being used to provide any value in investing in useful services and infrastructure but being delivered into the hands of gamblers.