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Mark Carney on Savings in Speech ...
Comments
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grey_gym_sock wrote: »this is a common way of thinking, but it's fundamentally confused, because one person's savings is another person's debt. if i have savings, then somebody else has debt.
Not when banks are leveraged up on their capital base ( using fractional reserve banking) . When the GFC struck, Barclays was leveraged at a ratio of 72:1. Compared to 1.06:1 in the early 70's. Even Basle III only takes banks down to a ratio of around 33:1. When banks have extreme levels of bad debt we will all share the pain.0 -
My cash holdings are growing above inflation, I have instant access to almost of of it, I pay an offensively low rate of tax on it (mainly thanks to the PSA) and it's all 100% guaranteed in case a bank fails.
This golden age of savings that people keep harking on about must have been incredible if it was so much better than now.0 -
In the "golden age" the rates of interest on savings were very high in numeric terms but people tended not to compare it with the inflation rate. At the end of the day it is the difference that matters.
Of course in that time the high interest current accounts didn't exist and you simply compared the savings accounts.0 -
Carney's real but not stated job is to keep house prices high and rising - that's why Osborne appointed him as Canada under his watch delivered just about the highest housing prices in the world.
that's not true. but at the same time, a significant drop wasn't desired either.. despite some of the rhetoric.0 -
They were talking to Mr Carney earlier on Radio Merseyside, and he was warning about the future where even those in work today could lose their jobs to robots.
I watch Humans too.
In Carney's next speech he will warn of the problems faced by aristocratic families trying to maintain their stately homes and way of life against a background of changing societal attitudes and World War.0 -
An economist on a radio show was saying mechanisation is not inevitable. Just look at the car wash. Once upon a time, automated car washes were spreading like mushrooms, but now they lie abandoned, with human HAND car wash teams doing a cheaper and better job.
You just have to remove the welfare state, go through a couple of years of riots and revolution, and there you are.0 -
verybigchris wrote: »My cash holdings are growing above inflation, I have instant access to almost of of it, I pay an offensively low rate of tax on it (mainly thanks to the PSA) and it's all 100% guaranteed in case a bank fails.
This golden age of savings that people keep harking on about must have been incredible if it was so much better than now.
Exactly. I find it quite strange when such good rates are available at the moment and have been for around the last 3-4 years. In addition the income from investments is also way above the base rate which is a historical aberration. Previously you accepted a lower starting income because it was likely to rise beyond inflation. Now you can have your cake and eat it with higher income and growth.Remember the saying: if it looks too good to be true it almost certainly is.0
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