Thursday, March 17, 2011

TSC member thinks the general public are “morons”

Tory MP makes scathing attack on Iceland bank saver 'morons'

Treasury select committee member David Ruffley says savers who chased high returns from the Icelandic banks are “morons” who “should have known better”. Ruffley said: “If you looked at an Icelandic bank and said ’the savings rate is up to three times what you can get in the UK’, you are a moron. “Were you a moron to think that there was some magic the Icelanders had come up with, a tiny economy whose banks were offering fantastic savings rates? I think you were probably a bit dim.

Posted by jack c @ 03:04 PM (2207 views)
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21 thoughts on “TSC member thinks the general public are “morons”

  • Unfortunately his government gives financial help to these morons and makes the rest of us pay for it.

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  • Ah. Hang on.

    First of all, those ‘morons’ include local councils and other government organisations and charities who were chasing rates of return above the persistently high levels of inflation which the Bank of England’s Monetary Policy Committee were meant to be addressing with interest rate rises (but weren’t, which was what led to the credit explosion).

    So umm who were the ‘morons’ on this?

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  • I’m sorry, but if it was so obvious that there was going to be a problem, then why didn’t our government step in earlier to warn uk savers.

    I know the people on here ‘in the know’ were sending out warnings, but for an MP to step up now, in hindsight and call people Morons is a pretty poor show.

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  • Paul

    Agreed.

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  • Hmm, I was one of these morons. However, I actually believed I was covered under both UK and Icelandic deposit protection schemes.
    Also, the interest wasn’t massively higher than a lot of the deals that were available at the time

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  • mark wadsworth says:

    What Paul says.

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  • Ruffey must be one of those “good quality” MPs referred to in the other MM article. I doubt that he applies the same reasoning to the intellectual standing of the financial wizards who ruined their banks chasing high returns. Resign!

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  • And what of the morons who said house prices only ever go up and the banking morons throwing money at people for mortgages
    or the moron economic ‘experts’ who said there was no chance of a recession etc. etc. The guy is a talking arrogant a***hole.
    Bet he has no money worries.

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  • talking of morons……

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  • Some might argue that someone who can’t even throw themselves infront of a train successfully might be considered not entirely smart. Just saying……

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  • surfgatinho: “However, I actually believed I was covered under both UK and Icelandic deposit protection schemes.”

    Quite. One might even say it was an intelligent judgement. Wouldn’t necessarily expect a Tory MP to work this out though.

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  • The rate on offer from ICESAVE via their easy access account was 5.70% as of May 2007 (effective from 19/01/2007) which compared favourably with A&L, Anglo Irish Bank, Birmingham Midshires and Heritable Bank all offering very similar rates (5.65%)

    What a lot of people didnt know is that the accounts were actually administered by Newcastle BS who had an entire floor of their main building dedicated to ICESAVE customers.

    The whole operation was approved by the FSA who gave the necessary permissions for UK deposit taking.

    The word Morons might actually be appropriate but not for the public who deposited money in good faith.

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  • We're All In This Together says:

    Speaking as a moron, I put my money in Kaupthing, under the completely moronic delusion that it was protected by the fscs scheme, and when the bank went tu and the money was transferred to ING I moronically collected my winnings and shoved them in another bank at a more “realistic” interest rate. What a moron. At least I’ve never voted Conservative.

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  • So were any of these banks covered by the UK government or were they not? I could swear at least one of them was when I was looking at them back around ’08 or ’09. And this bank was offering over 10% or something mad. My memory is telling me it was Kaupthing…

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  • We're All In This Together says:

    The fool doth think he is wise, but the wise man knows himself to be a fool.

    William Shakespeare

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  • jack c said The word Morons might actually be appropriate but not for the public who deposited money in good faith,
    But it was imprudent to risk having more than 50k in any one bank account. There would have been plenty of us who went to a lot of bother and sacrificed interest to avoid doing that.

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  • a saver – valid point on making sure deposits stay within the fscs protection limits of the time, however the vast majority of savers never get anywhere near the limit and consequently see no need to spread their money around (the average balance with ICESAVE was approximately £13.5K) The perception at the time was very much that money deposited in Bank/BS accounts was safe and secure – IMO the MP making this statement is way out of touch with ordinary everyday savers.

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  • Hard to disagree.

    Wonder who said this….
    “Eurofanatics dismiss Iceland’s prosperity as being based wholly on fisheries, and it is true that an ingenious quota system has turned Icelandic fish stocks into a massive renewable resource. But there is far more to it than that. Being outside the EU, Iceland has been able to cut taxes and regulation, and to open up its economy. For 70 years the Althing has been dominated by the splendidly named Independence party, which has pursued the kind of Thatcherite agenda that is off limits to EU members because of the Social Chapter, the euro, the 48-hour week and all the rest of it.”

    http://www.spectator.co.uk/spectator/thisweek/12658/blueeyed-sheikhs.thtml

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  • charlie brooker says:

    If he believes savers were morons for believing excesively high rates in Iceland, what does he have to say about those who believed in excessively high HPI in the UK?

    Was he one himself?

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  • Utter rubbish. The rates at Icesave et al were never three times that of the average rates at British banks. As for the usual claim that because the Icelandic banks were bigger than the whole Icelandic economy so dangerous, well, you utter morons, Barclays alone is bigger than the whole UK economy. The big high street UK banks are in total about four times the whole UK economy.

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