Tuesday, December 3, 2013

Steve Hawkes — Biggest drop in savings for 40 years, Bank of England figures reveal

Bank figures show £23 billion taken out of long-term savings in past 12 months, equivalent to £900 for every UK household
Telegraph
Biggest drop in savings for 40 years, Bank of England figures reveal
Steve Hawkes, Consumer Affairs Editor
(h/t Yves Smith at Naked Capitalism)

7 comments:

Roger Erickson said...

Yer doin' a heckuva job, private savings looters!

aka, banksters

Peter J. Peterson & David Walker must be very proud.

Charles Keating too.

Now if we can just get both private sector savings AND public deficits in fiat down to zero ... SIMULTANEOUSLY!!!

Deficit_Terrorist_vana! Right?

No one could have predicted the exact form of the "glorious success" that will follow that. Right?

Matt Franko said...

Reduced savings desires by the non-govt sector....

Roger Erickson said...

When is that, and when isn't it, a politically correct euphemism for looting of select parts of the private sector?

In practice, it is? 100% of the time?

Ryan Harris said...

What are long term savings exactly? These things can be misleading. When current accounts rose by 11%, it might be more than the 900 lost from long term savings?

With the rise in private credit in UK, and capital flows and immigration/human flows from depressed Europe, sussing out what happened exactly, isn't as straight forward as we might think.

Unknown said...

Might the people be trying to hang on to their slipping standard of living?

British wage-earners have taken £5,000 pay cut in five years, figures show

Anonymous said...

Exactly, people are emptying out the piggy banks just to hang on and pay their bills in dystopian England.

Also note that increased debt = negative savings, so when a report says the public reduced its savings in he aggregate that includes people with little or no savings going deeper into debt.

But hey, Larry Summers would say we need credit bubbles just to keep going.

Ignacio said...

Yeah, people is trying to keep their standards of leaving with diminishing incomes.

Is happening in a lot of Europe, not just UK. At some point even the looters (1-0.1%) will have diminishing wealth, but in relative terms they are more wealthy, so they are winning, in their view! The enslaved population is a huge assets, usually not accounted nominally, but in practice in terms of capital control over labour and other factors of production.