What gives savers a god given right to earn high interest rates???????????????????????????????????? | Discuss

Welcome to the Property Forum where we can share our knowledge & experiences together to become better at what we do.

 Forum Terms & Conditions


Page not looking right? Please CLICK HERE to RELOAD

Enlarge/Change font size here

A A A

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —





 

— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_Related Related Topics sp_TopicIcon
What gives savers a god given right to earn high interest rates????????????????????????????????????
05/03/2012
1:13 pm
Brassed_Off_Britain
Guest
Guests

I've been following your news stories on twitter and thought this might stir up an interesting debate.

Did anyone catch BBC Breakfast News this morning?
It had a couple of pensions experts (from Saga I think?) outlining why pensioners will assist the economy if interest rates are high.

Is it just me or is that the biggest load of **** you've ever heard? !

How exactly are pensioners going to boost the economy; when the majority of them don't even go out, let alone spend their money?!

Shouldn't we be focusing on getting the younger generation to boost our failing economy?
They are, after all, the future of our country - wouldn't you agree?
As workers aren't we all in the same boat? WE'RE the ones earning the money!

What about savers considering going on the stock market?

I just don't think it's right that the elderly have a god given right to earn high interest rates.
We should be keeping interest rates low, which will generate new commerce, business and jobs.
Surely interest rates being low will also give companies the opportunity of growth, thus allowing them to employ more people - in turn paying more taxes and spending more money in the high street?

To suffocate an economy because pensioners don't have extra spending money over and above their state pension seems one of the most absurd ideas I've ever come across!

Every time I see a coach go past me filled to the brim with blue-rinsers, I know that not only are they on their was to a hotel to spend their money on the most expensive wines & beers, I'll see them out later in the most upmarket boutiques and night clubs flashing their cash...!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

"Prop up the economy? !" - I'm not ageist, I'm just a realist.
 

05/03/2012
1:29 pm
PaulBarrett
Member
Members
Forum Posts: 2892
Member Since:
12/10/2011
sp_UserOfflineSmall Offline

Couldn't agree more;  borrowers generate growth as wages are never enough to sustain a growing economy.

The Chinese save huge amounts; with interest rates remaining low they lent all those savings to western borrowers!!!!!!

But you're right the blue rinsers are never going to be driver for the economy.

They as suggested tend to keep their funds close to their chests.

They are all thinking about care home fees!

05/03/2012
3:43 pm
Cedric
Golders Green
Member
Members
Forum Posts: 476
Member Since:
15/12/2011
sp_UserOfflineSmall Offline

I learnt a long time ago that ploughing your money into the Midland Bank (remember them ?) and waiting for interest rates to grow to something adequate for my retirement was never going to be profitable.  I then bought some properties and managed to increase my wealth.

Sadly I don't think I will ever have enough money for care home fees in London and suspect I may have to move to Sunderland or Stoke-on-Trent to afford these fees !!!

What we need to do is to ensure Banks lend out to Businesses again to assist our Town Centres (where people spend money and not at of Town area's such as Bluewater and Brent Cross).  

I can't believe the proliferation of Pound Shops and Pawn Shops nowadays.  Where is the economic Sense in that and what sort of Wage must these Pound shops be paying their employees.  Hardly enough to survive on I suspect.

Ethel, one of my neighbours does tell me she can get a good blue rinse in the local 99p shop though !!!

05/03/2012
6:11 pm
Paul Routledge
Admin
Forum Posts: 3415
Member Since:
20/05/2011
sp_UserOfflineSmall Offline

Hi Brassed off,

I saw that on BBC and thought much the same, I get very confused as to why we seem to have to feel guilty if we don't support the pensions of our old people with high interest rates on their savings so they can have extra incomes over and above the state pension. I cannot see that their savings/investments in order to get additional income is anything other than a commercial investment just like any other.

I also cannot see why we would sacrifice the growth of our economy by not offering businesses a smaller interest rate so they can use the money to reinvest into growth and employment. It makes no sense to jeopardise this growth just to reward people simply because they have saved up!!  After all, did we support those who lost money (pensioners or not) on everything else that went down the pan in the recession, shares etc.

The ladies on the TV argued that if they received a better interest rate, pensioners would spend more and support the economy - what hog wash - this statement is a contradiction of exactly what they do and would do, they dont spend more, they save more as they have done in the first place hence the complaint of the small interest payable on their savings. 

So let us get it right; keep interest low; invest in our economy get our manufacturing and GDP up and give our young folk who we support on the dole each week a wage, a future and some dignity. 

06/03/2012
11:17 am
LyndonBaker
Member
Members
Forum Posts: 1805
Member Since:
12/10/2011
sp_UserOfflineSmall Offline

Hi Paul

 

Many years ago I ran a newsagents in Bristol and was surrounded by small businesses. I said at the time that banks should have two rates of interest charges. One for businesses and one for personal customers, which would allow banks to help businesses whilst restricting spending of personal customers. It is so logical.

06/03/2012
12:46 pm
Paul Routledge
Admin
Forum Posts: 3415
Member Since:
20/05/2011
sp_UserOfflineSmall Offline

LyndonBaker said:

Hi Paul

 

Many years ago I ran a newsagents in Bristol and was surrounded by small businesses. I said at the time that banks should have two rates of interest charges. One for businesses and one for personal customers, which would allow banks to help businesses whilst restricting spending of personal customers. It is so logical.

If the last Government had bothered to open the piggy bank and peer and then put restrictions on public borrowing rather than encourage the Banks to throw cash at everyone to buy trash, we would never have had such a huge deficit in the Countries coffers.

They say we have all benefited from the low interest rates "NO" the banks and large institutions have benefited. The guy in the street has still had to pay 5% for his mortgage when it rolled off of a fix or a new one and the business man never got a overdraft or loan rate at less than 6% more like 10% and that's if they could get it. credit card rates went from 6% to 29.9%, so if the saver wants more money than is on offer as a safe bet then do what the rest of us do invest in a higher risk and take your chance.  Confused

09/03/2012
11:16 am
Brassed_Off_Britain
Guest
Guests

After watching the news this morning if I wasn't confused before I'm completely baffled now!

They were saying that interest rates are being increased because of the cost of money being increased.
Whereby margins, just before the recession, on borrowing VS lending were approximately 0.3% to 1.875%.

Now with the base rate at 0.5% banks must be creaming off the other 4% for themselves!

The financial "guru" said that the interest rate rise is because of the London Inter Bank Markets offering money at much higher rates.

Now I know that obviously that stands to reason but if you check the current 1, 3 & 6 month LIBOR rates it clearly states that the money is being offered between 0.24% & 0.74% on the interbank markets.

So are they suggesting that not only are the base rates low but that the LIBOR rate doesn't have any offers?
And if it doesn't have any offers then how can they claim that the LIBOR rate is at 0.3% to 1.875%?!
Or am I just being an idiot? !

Come on guys, you need to come clean that the banks are creaming off 4-5% in order to meet the new legislation laid down by the government - to make bigger profits to cover the debts that they incurred through their previous bad management.

Again, is it just me or are they after our taxes to bail them out and keep them in business?
If so, THIS IS WHY OUR ECONOMY ISN'T KICK STARTING! 

Forum Timezone: Europe/London

Most Users Ever Online: 755

Currently Online:
29 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Top Posters:

PaulBarrett: 2892

Mary Latham: 2190

LyndonBaker: 1805

David Price: 1645

Patricia A: 986

DATA CONTROL: 967

Member Stats:

Guest Posters: 2539

Members: 6323

Moderators: 6

Admins: 1

Forum Stats:

Groups: 1

Forums: 3

Topics: 4468

Posts: 30962

Newest Members:

aydenchurch, hereiam, EZI Global, lindy, mrkane, aztec

Moderators: SamiiB: 441, News @ Tenant Referencing: 1577, laura: 15, Chloe: 107, lucybarr: 0, jaswhite: 20

Administrators: Paul Routledge: 3415

/* ]]> */