UK savers continue to get screwed by the BOE's near-zero rate policy and are fearing worse.
Low interest rates may have helped the country survive the terrible financial crisis of 2008. They could also steer us through the fallout from the Brexit vote in June – a view certainly held by Bank of England boss Mark Carney who quickly sanctioned a cut in the base rate to 0.25 per cent.
But seven and a half years of low rates have caused nothing but pain for savers who depend on the interest from their cash accounts to maintain a decent standard of living.
DTN UK: Low rates and rising inflation mean more misery for savers: Here’s what the Chancellor must do to end... https://t.co/m9Wnpds0CG— DTN UK (@DTNUK) October 23, 2016
10 comments:
The MOST sovereign debt should yield, being risk-free, is 0%.
You want to save? Then save but don't expect to be paid for it.
But seven and a half years of low rates have caused nothing but pain for savers who depend on the interest from their cash accounts to maintain a decent standard of living.
Welfare should be based on need, not proportional to account balance.
otherwise known as "no relief in sight for UK Rich people" who want to get free welfare from the Govt.
Rich people would probably love it if we went back to the REagan Era situation where the Govt set up a real, risk-free welfare of about 7% per year for the wealthy if they bought 10 yr TSY CDs.
https://fred.stlouisfed.org/series/CPIAUCSL
Who wouldnt love a 7% real return on their savings every year with no risk at all?
AAHHH!!!
I dont know why the link only shows CPI, but if you add 10 yr TSY CDs to the graph, you'll see what I'm talking about
Agree with Andrew. What nonsense to propose as public policy paying people in accordance with their accumulated wealth!
Jim
"free welfare from the Govt."
there is much more to managing the risk free rate than this...
"I dont know why the link only shows CPI,"
LOL maybe because the ghost in the machine is trying to say that they are the same thing...
How's your "portfolio" doing, Matt?
Well it would be doing a lot better if they went to permanent ZIRP like the MMTers advocate for I can tell you that:
http://www.cnbc.com/2016/05/02/buffett-says-if-the-government-did-this-the-dow-could-hit-100k.html
"Billionaire investor Warren Buffett told CNBC on Monday just how important interest rates are to stock investing.
"If the government absolutely said interest rates are going to be zero for 50 years, the Dow would be at 100,000," Buffett told "Squawk Box," stressing he was speaking hypothetically. The Dow Jones industrial average closed at 17,773 on Friday."
agree 100% andrew anderson
Post a Comment