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Realistbear

Banks Plead For More People To Save

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http://uk.biz.yahoo.com/06092007/325/banks...urce-funds.html

Thursday September 6, 04:14 PM
Banks target savers for stable source of funds
LONDON (Reuters) - Banks in Britain and elsewhere are lifting interest rates on retail savings accounts as turmoil in global credit markets makes consumers an increasingly attractive and stable source of funds.

Whats up with this? They used to be able to borrow cheaply from Japan. Have the Japs suddenly woken up to the fact that it is no lonmger safe to lend to our banks who have not got a clue about what they owe or to who?

If only all the people could get together and say to the banks: 1 point----a month. You want our money now you pay. Its only business nuttin poisonal.

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http://uk.biz.yahoo.com/06092007/325/banks...urce-funds.html
Thursday September 6, 04:14 PM
Banks target savers for stable source of funds
LONDON (Reuters) - Banks in Britain and elsewhere are lifting interest rates on retail savings accounts as turmoil in global credit markets makes consumers an increasingly attractive and stable source of funds.

Whats up with this? They used to be able to borrow cheaply from Japan. Have the Japs suddenly woken up to the fact that it is no lonmger safe to lend to our banks who have not got a clue about what they owe or to who?

If only all the people could get together and say to the banks: 1 point----a month. You want our money now you pay. Its only business nuttin poisonal.

All that extra saving means less spending. Less sending might lead to recession. Oh dear. They won't want that will they. Time to cuts the interest rates.

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All that extra saving means less spending. Less sending might lead to recession. Oh dear. They won't want that will they. Time to cuts the interest rates.

But what do we spend a lot if it on? Tat from China? I can't see a downturn in the high street having as much impact as it used to (apart from tat merchants in the high street that is).

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But what do we spend a lot if it on? Tat from China? I can't see a downturn in the high street having as much impact as it used to (apart from tat merchants in the high street that is).

This is true, but the purveyors of this tat take a cut of the retail price. This allows them to employ people to purchase the tat. The government also deducts tax for it's own spending from the sale price of said tat. More saving, less tat purchases ......

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This is true, but the purveyors of this tat take a cut of the retail price. This allows them to employ people to purchase the tat. The government also deducts tax for it's own spending from the sale price of said tat. More saving, less tat purchases ......

Also of course, lower sales mean less jobs in retail and service industries. Which feeds back into less money going into the economy.

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Some impressive savings rates now being offered - several building socs now above 6.7% (highest so far 6.85%) either instant access or 1 year fixed (tempting). One of my property valuation methods has been rental yields and the max that can possbily make any sense AT ALL to pay for a house is one that if rented would yield 5% as savings rates were around that figure. So, a house that rents say for £1000 a month would have a max "value" of £240k. If that minimum yield is now circa 7%, then that house renting at £1k a month would have a max value of of £171k, meaning that the value has dropped by 29% in one fell swoop. Simplistic I know, but it makes sense to my simple mind.

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