sleepwello'nights Posted April 14, 2012 Share Posted April 14, 2012 Oh really? Try and get a mortgage at an interest rate anywhere near 0.50%. Lenders SVRs are far higher and increasing. Don't forget to add in the fees that are charged for switching once the introductory rate ends. These are all part of the costs and are a way for the lender to increase the effective rate of interest charged without explicitly disclosing the real interest rate. What date was that headline btw? Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted April 14, 2012 Author Share Posted April 14, 2012 What date was that headline btw? Judging by the other story it was just after the riots but the Express has a similar headline on a repeating loop so the date is immaterial. Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted April 14, 2012 Share Posted April 14, 2012 i dont trust the MPC, they have failed, in the past year i have tripled my money, i have taken out my savings and purchased shares, buying on the dips, and i see in the near future a rush to shares volatility in price movements is whats making people money. 200% in one year - even the worlds best investors can only sustain a tenth of that over the medium to long term. These "dips" that you have been buying into is the market pricing in the risk of a big crash, you've just been lucky that none of the priced-in risks actually materialised. Quote Link to comment Share on other sites More sharing options...
Lion Posted April 14, 2012 Share Posted April 14, 2012 (edited) http://money.uk.msn.com/exclusives/its-not-our-job-to-help-savers-says-bank-of-england Good to see that the BoE are not favouring the interests of one group of people over another... savers do nothing to save the economy - they are selfish and create a trap for money that needs to go from hand to hand as quickly as possible to make sure the economy runs smoothly. the economy needs demand and consumption. spending all cash may not be the best for any indivdual as it increases the risk of being short of cash in future, or for the environment, but it is best for the economy. and the bank of england have to look after the economy. i know that their official target is inflation, but everyone knows that in reality it is the economy and inflation is only one aspect of the economy. so it is clear that they try to encourage people to spend (and also help those who overspent, so people have less fear of spending) and will not give any support to savers. banks can get their funds from other sources anyway - quantitative easing for instance provides funds, banks just chose currently to sit on their funds and lend less than in the past, but that is a different issue and it won't go away just by increased saving. or does anyone think increased saving will lead to increased lending and investment? the opposite is true, there will be less investment and less demand for loans if everyone saves more and consequently much higher unemployment. in fact, one solution of the current crisis could be if all savers who hold cash spend this cash - preferably not on assets, but on things that create jobs like clothes, travels, restaurants, sports items, electronic gadgets, cars, membership fees, beauty treatments, cinema etc. this would promote growth and consequently reduce debts. reducing debts involves reducing credit as well as there is a credit for each debt. if debt is unsustainable, it means credit is unsustainable and needs to be spent or cancelled. reducing credit by cancelling debt will however not give much benefit to the economy or the credit holders. public and private debt will have to be cancelled to some degree anyway, by the means of high inflation over a number of years (many years). so spend or invest your cash before it is too late - we have only seen the beginning! i will not necessarily do this myself as i am a bit selfish and would like to save a bit for old age and rainy days (although these funds are mainly in shares), but i understand why the bank of england - in the current situation - likes spenders more than savers. and therefore interest rates will not rise significantly (if at all) for another decade at least. Edited April 14, 2012 by Lion Quote Link to comment Share on other sites More sharing options...
billybong Posted April 14, 2012 Share Posted April 14, 2012 (edited) If they so blatantly want people not to save and want them to spend instead then why don't they get the banks to stop advertising their rip-off savings products. The banks can still provide the rip-offs but not spend money (some of which must be derived from savers money) on advertising them - except in the most basic form such as in-branch leaflets. No more huge placards in all the windows, no more adverts in every newspaper and magazine, no more billboards along the roads, on the walls and at bus stops and no more telly and radio adverts etc. People who do still want to save might even get a marginally better rate through the cost savings. Notice he didn't mention those who have saved for old age and who are now retiring and having to buy a pension with annuity rates at extremely low levels and whatever annuity they do buy will likely be eaten away by out of control inflation. They are an excuse for a central bank. Edited April 14, 2012 by billybong Quote Link to comment Share on other sites More sharing options...
billybong Posted April 14, 2012 Share Posted April 14, 2012 (edited) ”It’s very much swings and roundabouts. At the current juncture, savers might be suffering as a result of bank rate being at low levels, but there will be times in the future — as there have been times in the past — when they will be doing very well. Yeah right - according to his manipulated figures that is. Edited April 15, 2012 by billybong Quote Link to comment Share on other sites More sharing options...
Gigantic Purple Slug Posted April 14, 2012 Share Posted April 14, 2012 (edited) savers do nothing to save the economy - they are selfish and create a trap for money that needs to go from hand to hand as quickly as possible to make sure the economy runs smoothly. the economy needs demand and consumption. spending all cash may not be the best for any indivdual as it increases the risk of being short of cash in future, or for the environment, but it is best for the economy. and the bank of england have to look after the economy. i know that their official target is inflation, but everyone knows that in reality it is the economy and inflation is only one aspect of the economy. so it is clear that they try to encourage people to spend (and also help those who overspent, so people have less fear of spending) and will not give any support to savers. banks can get their funds from other sources anyway - quantitative easing for instance provides funds, banks just chose currently to sit on their funds and lend less than in the past, but that is a different issue and it won't go away just by increased saving. or does anyone think increased saving will lead to increased lending and investment? the opposite is true, there will be less investment and less demand for loans if everyone saves more. and consequently much higher unemployment. in fact, one solution of the current crisis could be if all savers who hold cash spend this cash - not on assets, but on clothes, travels, restaurants, sports items, electronic gadgets, cars, membership fees etc. this would promote growth and consequently reduce debts. reducing debts incolves reducing credit as well as there is a credit for each debt. if debt is unsustainable, it means credit is unsustainable and needs to be spent or cancelled. reducing credit by cancelling debt will however not give much benefit to the economy or the credit holders. cancelling debt would for instance be done by the means of high inflation over a number of years. so spend or invest your cash before it is too late - we have only seens the beginning! i will not necessarily do this myself as i am a bit selfish and would like to save a bit for old age and rainy days (although these funds are mainly in shares), but i understand why the bank of england - in the current situation - likes spenders more than savers. I was long cash in 2009 when I joined this site, which helpfully steered me towards the conclusion that the government was not going to act in my interest. The governments responsibility is to act in the best interests of the country. Given the choice between having a load of people kicked out on the streets or me being given more money that I can stuff in the bank it seemed clearly obvious which path the government was going to take. if anyone isn't happy with the current rates of interest they are getting then clearly they have the option to change their investment strategy ? In fact the Einstein quote springs to mind : Insanity: doing the same thing over and over again and expecting different results. Edited April 14, 2012 by Gigantic Purple Slug Quote Link to comment Share on other sites More sharing options...
Game_Over Posted April 14, 2012 Share Posted April 14, 2012 I was long cash in 2009 when I joined this site, which helpfully steered me towards the conclusion that the government was not going to act in my interest. The governments responsibility is to act in the best interests of the country. Given the choice between having a load of people kicked out on the streets or me being given more money that I can stuff in the bank it seemed clearly obvious which path the government was going to take. if anyone isn't happy with the current rates of interest they are getting then clearly they have the option to change their investment strategy ? In fact the Einstein quote springs to mind : Insanity: doing the same thing over and over again and expecting different results. I am now getting 4% in a 2 year bond So when inflation hits the BOE's target of 2% next year I will be getting double the rate of inflation. So much for zero or negative interest rates. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted April 14, 2012 Share Posted April 14, 2012 http://money.uk.msn.com/exclusives/its-not-our-job-to-help-savers-says-bank-of-england Good to see that the BoE are not favouring the interests of one group of people over another... ...two-faced inept beings....their total strategy is to save the reckless borrowers at the expense of those who were prudent and avoided debt and / or saved....rats go down with their sinking ship..... Quote Link to comment Share on other sites More sharing options...
Vagabond Posted April 15, 2012 Share Posted April 15, 2012 I am now getting 4% in a 2 year bond So when inflation once again fails to hit the BOE's target of 2% next year I will, if I'm very lucky, just about get my money back measured against a basket of goods that has no relation to my actual spending paterns. Meanwhile, when buying things like food and energy I'll be shafted. I fixed that for you. Quote Link to comment Share on other sites More sharing options...
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