Saturday, August 14, 2010

Oh the irony!

IT'S THE END FOR SAVINGS

MILLIONS of savers are seeing their accounts rendered obsolete because of low interest rates and rising inflation. With historically low interest rates, which have been held at 0.5pc for 17 months, and inflation now at 3.2pc, savers are already struggling to get a decent income. Darren Cook, of personal finance website Moneyfacts, said: “Interest rates are not high at the moment. But the last thing you want is for savers to go out and change banks or put their money into a riskier investment during this economic uncertainly."

Posted by drewster @ 10:36 AM (4410 views)
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6 thoughts on “Oh the irony!

  • The comments by Express readers are tragic:

    “If some contributors had their way house prices would halve – and 2 million building workers would never work again.”

    “To those who want lower house prices, have you ever wondered what will happen to the building industry if that happens?”

    One reader sees through the spin:

    “Make up your mind guys, good deal for savers or continued propping up of house prices.”

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  • drewster – we need a building company equivalent to primark …. oh hang on its the land thats the problem not the building cost innit…

    if the price of land halves 2 million building workers might actually prosper. Still express readers are er express readers, now where is my bar of Milka!!?!?

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  • What a loopy comment that one about 2 million building workers is!

    If house prices halved, then more people could afford a home of their own, more homes would be built and we’d need more building workers, not less..

    Fortunately, the brigade who argue that ‘high house prices are good, rising prices even better’ – seem to be dwindling.

    There seems to be a growing recognition that high house prices are a problem, and not an advantage.

    I’m reminded of the cat who runs up a tree full of wild enthusiasm; then slowly realises that there is no elegant way of descending. The cat then miaows pitifully until nightfall, hoping that someone will come to the rescue. Finally, hunger, and the recognition that darkness will hide his undignified descent; prompts it to crash to the ground as best it can. It then saunters into the house, trying to look as though nothing has happened..

    The cat is up the tree, we are hearing the pitifull miaows for help, and the govt is doing its best to ignore them..

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  • Should have read “Millions of Prudent Trusting Plebs Who Didn’t Go To The Party, So Didn’t Think They Would Be Made To Carry The Can When It All Fell Apart Will Lose Out” Thankfully, I saw through Gordon’s intention to do whatever it took to cling to power 3 years ago and diversified out of UK bank fixed deposits. Sure, it was risky, but not as much as leaving my life savings in just one form of investment/currency. As the man said – buy low, sell high, it’s not rocket science. I am about 25% up since 2007 and the main reward is that I sleep better at nights. I may dip back into UK property should it fall to 2001-2 levels as I intuitively feel that would be fair value. This view was reinforced after seeing a graph of FTB levels which shows a steep slide of FTB purchases beginning around 2001. Maybe a bit simplistic, and I’m assuming any govt props will be removed, but maybe the floor will only be reached when enough FTBs are in a position to prop up the bottom in a natural manner, and the last time that point was, seems to have been at around 2001-2 prices.

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  • markj69 str05 says:

    @ UT.. Yeah, but they always land on their feet!

    And what’s the problem with changing banks? I’ve been a savings tart for a while now. Nothing wrong with looking for the best deals. And if savers really wanted to send a message, then choose a bank – Lets say NR – And why doesn’t everyone withdraw most of their saving and switch to another bank. Then if nothing changes, everyone moves their money again. The banks will soon get the idea, then maybe they’ll start pulling the right strings connected to the muppets at BOE. Just a thought, what do you thinK?

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  • markj69 @ 4

    The problem with banks is that, we are quickly reaching the point where none of the them pay a positive rate of return. The joy of dancing around them with passports etc needs to have some reward.

    My household have woken up on this stuff and leave little in the bank. Preferring to take modest selected risks for positive returns. There is a whole learning process to it but sadly there is no substitute.

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