7 Savers To Every Borrower

[Webby]

If there are indeed 7 savers for every borrower, would a party that offered higher interest rates walk an election?

[Dubai]

If there are indeed 7 savers for every borrower, would a party that offered higher interest rates walk an election?

Where did you hear that? Most of the "news" I've seen says that the Country actually has "negative savings" these days.....

[olliegog2]

there probably is negative saving as more has been loaned out (via dodgy credit) than is held in savings but this does not necessarily mean that there are more borrowers than savers. The amounts borrowed are huge to cover overinflated

house prices by each individual borrower whereas each saver may only have a few thousand saved but there are a lot more of them therefore a lot more potential votes. It is not the amount in monetary terms of savings that will be important to the saver but the principal at stake.

Edited December 8, 2008 by olliegog2

[Mikhail Liebenstein]

there probably is negative saving as more has been loaned out (via dodgy credit) than is held in savings but this does not necessarily mean that there are more borrowers than savers. The amounts borrowed are huge to cover overinflated

house prices by each individual borrower whereas each saver may only have a few thousand saved but there are a lot more of them therefore a lot more potential votes. It is not the amount in monetary terms of savings that will be important to the saver but the principal at stake.

The figure above is correct. There are 7 times more savers, its just the borrowers tend to borrow stupid amount. Granny might have £40k in savings, but the ChavMew family have borrowed £500k, £400k for a house and £100k for a 4x4, flat screen and holidays to support their celeb lifestyle.

I think Brown has forgotten who votes.

[DoctorJ]

Sadly, the tories don't seem to be smart enough to see this

[OnlyMe]

7 non-spenders for every borrower once their savings get slaughtered by inflation.

Poor retailers, hooked up with too much debt or overpriced leases clearing their stock lines prior to administration is not and never will be deflation. Howver when they have successfully broken the back of the rest of the population who didn't go along with the absurd bubble, then we'll really find out how good the economy is.

A muppet central bank feeding their political master with short term money fixes (which they have been doing for 10 years now) are just going to make the situation worse, spread it across the entire popualtion and draw out the problems longer.

[King Stromba]

Tory researchers and channel 4 news:

7 savers to every borrower - WAKE UP!!!!!!

[Normal]

If there are indeed 7 savers for every borrower, would a party that offered higher interest rates walk an election?

There are 11 million mortgages in the UK. There are not 77 million people. Let's not let facts get in the way though.

Possibly there are 7 times as many savings accounts as mortgages?

[Mikhail Liebenstein]

There are 11 million mortgages in the UK. There are not 77 million people. Let's not let facts get in the way though.

Possibly there are 7 times as many savings accounts as mortgages?

Some people have 3 mortgages -

Edited December 8, 2008 by mikelivingstone

[19 year mortgage 8itch]

There are not 77 million people.

Have you counted recently?

[contractor]

Some people have 3 mortgages -

Thats still only one borrower though.

Worst case scenario 60 million men, women, and children, everyone is a saver:

60/7 = 8.57 million borrowers. Now clearly thats not right so the figures are clearly duff.

[OnlyMe]

Thats still only one borrower though.

Worst case scenario 60 million men, women, and children, everyone is a saver:

60/7 = 8.57 million borrowers. Now clearly thats not right so the figures are clearly duff.

Everybody that has any savings at all is having those savings raided by short term monetary policy.

Everybody who earns or receives money will have the value of that money devalued by such a policy.

Everybody who has or likely to receive a pension of one form or another will suffer as a consequence as well.

The effect will be somewhat broad and somewhat disastrous.

[Cogs]

Everybody that has any savings at all is having those savings raided by short term monetary policy.

Everybody who earns or receives money will have the value of that money devalued by such a policy.

Everybody who has or likely to receive a pension of one form or another will suffer as a consequence as well.

The effect will be somewhat broad and somewhat disastrous.

Maybe its just me being odd but the conclusion I draw from all this is that I'm going to need to save more and thus reduce my spending quite sharply.

I thought Brown wanted us all down the shops spending money?

[cynic]

More savers than borrowers but perhaps more VI home-owners than renters/would-be FTBs?

And there's a huge overlap between these groups, so many will have an eye on optimising their stash (savings + house 'value') - prepared to see some loss of savings-value for the sake of the house.

It could still be in Browns interest to let inflation rip.

[detached]

There are indeed for more savers than borrowers, but the total value of retail deposits is £800bn, as opposed to £1,230bn worth of mortgages (£136bn of which are BTL mortgages).

Interestingly, 2% of savers hold about 50% of the £800bn total.

This means that the vast majority of savers have relatively small balances on their accounts (under £5,000 I'd say), so as far as Gordon is concerned, they can ferk off .....

[The Spaniard]

Interestingly, 2% of savers hold about 50% of the £800bn total.

This means that the vast majority of savers have relatively small balances on their accounts (under £5,000 I'd say), so as far as Gordon is concerned, they can ferk off .....

Surely this means that "small" savers constitute most of the saver vote, which must be of some interest to GB.

Well, at least every four or five years.

[detached]

Surely this means that "small" savers constitute most of the saver vote, which must be of some interest to GB.

Well, at least every four or five years.

True up to a point. My argument is that for most savers, the inevitable drop in the saving rates will not make much difference, plus the fact that a lot of savers have also big mortgages.

There are plenty of families with a big mortgage who also have several saving accounts (usually for the children) with small balances.

[chichi]

but the total value of retail deposits is £800bn,

So how much have they bailed the banks out with?

[detached]

So how much have they bailed the banks out with?

About £400bn as of today (£37bn in preference shares and the rest is lending guarantees).

I am waiting for the big one though - fully state-guaranteed mortgages as recommended by Crosby .......

[edgexedge]

There are a lot of people with just an ISA & a few hundred £s in a savings account.

You would need a lot more than 7 of them to balance out a £100k mortgage.

Based on a £3600 ISA, you need 28 of them to balance a £100k mortgage.

We have been borrowing money that we simply dont have within the UK economy, & all that will have to be paid back at some point. Thats a lot of money leaving the UK.

[detached]

We have been borrowing money that we simply dont have within the UK economy, & all that will have to be paid back at some point. Thats a lot of money leaving the UK.

You're not wrong here.

https://www.cia.gov/library/publications/th...r/2079rank.html

UK second largest debtor in the world after the US, with comparatively small foreign exchange and gold reserves.

[5lab]

i'm probably pretty 'average' as far as savers go, i've got just under 5 grand tucked away. At the moment that's earning about £20 pcm interest. as rate drops filter through, i'll be down to around £10 pcm. bummer. however, if rates skyrocket, I'll only be getting £30-40pcm tops. there are far bigger topics in play than £20pcm (a tiny bit of tax for starters)