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Whinging Savers


Setantii
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Guest Daddy Bear
Actualy, all I am concerned about is keeping the real value of the money I have saved, and this is not possible with the interest rates we have had for the last 10 years or so, never mind the idiotic 1/5th of real inflation that interest rates are today.

The reason that many working people cant save much is because banks, big businness and government entities don't want it that way, how else could they have pushed house prices and rents to the current levels? In the UK, the big VI's have set the balance of monetary distribution in favour of themselves, not you.

Higher than real inflation interest rates protects not just the integrity of your 'Worked for' savings but keeps many other things in line, like the big one we go on about here, 'Housing' which could never have achieved the massive bubble status is still in had rates and lending been realistic. Those who are sitting in a bubble inflated house thinking it is a good thing are completely stupid. And those that think they should be protected from their house price dropping due to a new paradigm rising are demanding debasement of the currency and massive inflation in order to do so.

And this is what the people will get .............it has always been so............

The alternative will not be allowed.

Savers will pay the debts off

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Actualy, all I am concerned about is keeping the real value of the money I have saved, and this is not possible with the interest rates we have had for the last 10 years or so, never mind the idiotic 1/5th of real inflation that interest rates are today.

The reason that many working people cant save much is because banks, big businness and government entities don't want it that way, how else could they have pushed house prices and rents to the current levels? In the UK, the big VI's have set the balance of monetary distribution in favour of themselves, not you.

Higher than real inflation interest rates protects not just the integrity of your 'Worked for' savings but keeps many other things in line, like the big one we go on about here, 'Housing' which could never have achieved the massive bubble status is still in had rates and lending been realistic. Those who are sitting in a bubble inflated house thinking it is a good thing are completely stupid. And those that think they should be protected from their house price dropping due to a new paradigm rising are demanding debasement of the currency and massive inflation in order to do so.

I agree with most of that but although I can understand why you would like your savings to at least hold on to a "real terms" value, I can't see why anyone is entitled to that. Not when everything else is going down the pan.

Very high inflation has always historically followed these sort of financial disasters, and although I find it hard to see how any company is going to start offering the kind of wage rises that will be needed to fuel it, the past tells us that it will happen eventually. Unless it really is different this time.

If it does happen the current low rates versus fairly low inflation situation will seem like a walk in the park in comparison. Your savings will be worth sod all.

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And this is what the people will get .............it has always been so............

The alternative will not be allowed.

Savers will pay the debts off

Government and big buisness will most likely be able to pay of their debts more quickly via the massive inflation that the government is now focused on. However the average worker/mortgagee that is also demanding this inflation will not be so well served. Many parameters have been introduced since the 1970's to prevent this. First of course is the de-unionisation of the workforce over the last 25 years or so, Second is the outusourcing of jobs(at all levels now) to 3rd World slavenomic countries and thirdly as we can all hear and see, the importation of cheap labour which has already had great effect on local wages at the bottom end. Amongst all of this how on earth can the real economy be saved by this process? How can workers, if they cant increase their earnings beat or even stay even with the inflation? They wont and this is the exact same process that is working against savers, lower than inflation interest rates is in fact inflation in another guise.

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At 2% p.a. most people are learning the lesson that it is best to spend it while you've got it and either declare bankruptcy or make sure that you are in the middle of the bell curve of whatever group of feckless indebted morons are in the majority.

:lol: Most people save for capital, not interest. This is something even 5 years old can understand. Reducing interest rate makes no blooming difference.

Edited by refusnik
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Expect to see a major bit of winging from savers in the next 6 - 12 months......

:unsure:

Why should savers winge? If they hadn't of saved it they would have spent it, at least they now have something, better than have spent it on a falling asset or on buying something they can't remember buying. ;)

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I agree with most of that but although I can understand why you would like your savings to at least hold on to a "real terms" value, I can't see why anyone is entitled to that. Not when everything else is going down the pan.

If it does happen the current low rates versus fairly low inflation situation will seem like a walk in the park in comparison. Your savings will be worth sod all.

Its going down the pan because some people were reckless and stupid. Those people who refused to take part now arent entitled to keep the value of their hard earned savings according to you?

:angry:

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Its going down the pan because some people were reckless and stupid. Those people who refused to take part now arent entitled to keep the value of their hard earned savings according to you?

:angry:

They didn't "refuse to take part" they handed the cash to the bankers so it could be leveraged - causing the bubble.

If "savers" had shown any interest in what their money was up to, there coule be no bubble!

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In order to save a family has to have an income large enough to have at least some 'spare' cash to put away.

Far too many posters to this site seem to have no idea that this is just not the case for most of the population.

I have commented before on this subject and I will repeat my view once again.

Exactly how much money do you 'savers' want to get paid for doing nothing more than sticking your spare cash in a run of the mill account when most investments are on the slide?

It's the self righteous "I'm one of the good guys" "I'm responsible" "I deserve to be able to live off the interest" nonsense that I strongly object to.

Oh, and I nearly forgot the most annoying one. "I did without while others lived the high life on borrowed money".

Most of this comes from folk who don't have the faintest idea what really "going without" means.

OK, it is hard for many people on moderate incomes to save, esp. if they've got kids.

But a good many savers do most certainly know what 'going without' means, since we grew up in an era when it was normal to have two and fourpence halfpenny to last till payday; when there were no automatic overdrafts (you had to go and see your stern and scary bank manager); no loans dished out like Smarties, and there was no borrowing from parents since they were very likely as broke as you were, and you wouldn't dream of asking even if they weren't, since you were expected to be grown-up enough to manage on what you earned.

We knew exactly what it was like to have no money - that's why when we finally got a bit of spare we stashed it away.

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