Starmer targets savers...

[AtW]

"Millions of savers would be given a chance to invest in the UK's recovery from the coronavirus crisis, under proposals set out by Sir Keir Starmer.

The Labour leader's British Recovery Bond scheme is the centrepiece of his alternative plan for "national recovery", ahead of 3 March's Budget.

He also proposed start-up loans for 100,000 new small firms, especially in areas outside the South-East.

...

The main policy the Labour leader put forward was a British Recovery Bond.

A Labour government would offer people a savings account with the government at a competitive interest rate - similar to the previous National Savings and Investments bonds.

The cash raised would then be spent on rebuilding the country post-Covid. "

Sir Keir Starmer: Savings scheme would boost UK'''s recovery post-Covid - BBC News

0.5% for 100 year bonds?

Beats having increase in taxtaion...

[Whorty]

"Millions of savers would be given a chance to invest in the UK's recovery from the coronavirus crisis, under proposals set out by Sir Keir Starmer.

The Labour leader's British Recovery Bond scheme is the centrepiece of his alternative plan for "national recovery", ahead of 3 March's Budget.

He also proposed start-up loans for 100,000 new small firms, especially in areas outside the South-East.

...

The main policy the Labour leader put forward was a British Recovery Bond.

A Labour government would offer people a savings account with the government at a competitive interest rate - similar to the previous National Savings and Investments bonds.

The cash raised would then be spent on rebuilding the country post-Covid. "

Sir Keir Starmer: Savings scheme would boost UK'''s recovery post-Covid - BBC News

0.5% for 100 year bonds?

Beats having increase in taxtaion...

Compared to current bank savings rates of 0.1%, that's a 'massive' return

It's a nice idea in principle, but they'll only get takers if they offer a reasonable return. Really they should be offering a similar % that they would have to pay the big money lenders, but I guess we're not as important as them eh?

[jamesbrown]

It’s a blindingly stupid idea to borrow at higher than market rates, thereby increasing debt interest and pressure to raise taxes in future.

[AtW]

It’s a blindingly stupid idea to borrow at higher than market rates, thereby increasing debt interest and pressure to raise taxes in future.

It’s a great idea if it’s somebody else’s future problem.

Govt does not need to pay anything really - BoE mist be the main “buyer” of bonds, who the feck would tie up money in stupid gilts paying 0.2% when you could buy tulipcoins and make 2-3X before Xmas?

P.S. Starmers idea idiotic because he will both not raise meaningful amounts of money (and this needs to be 100 bln+) and (without Ns&I like limits) people will pull money from banks and those could fold without bailout.

[jamesbrown]

It’s a great idea if it’s somebody else’s future problem.

Govt does not need to pay anything really - BoE mist be the main “buyer” of bonds, who the feck would tie up money in stupid gilts paying 0.2% when you could buy tulipcoins and make 2-3X before Xmas?

P.S. Starmers idea idiotic because he will both not raise meaningful amounts of money (and this needs to be 100 bln+) and (without Ns&I like limits) people will pull money from banks and those could fold without bailout.

I think we can be fairly confident that it isn’t Starmer’s future problem. Actually, insurers and pension funds, but the BoE too, yes. It’s just a Stupid Idea™. Savers are fooked either way and these bonds will not pay a meaningful rate of interest for all of the reasons that it’s a crap idea. Tokenistic ******** aimed at older voters.

[AtW]

Top comment on FT -

“ A popover with more user information
14 HOURS AGO
(Edited)
What on earth is Starmer talking about? The UK government is raising money effectively below zero, in quantities higher than ever imagined (this from 9th Feb):

UK Regulatory Announcement: Issue of Debt | Business Wire

"The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £2.25 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2051 has been priced at £189.697 per £100 nominal, equating to a gross real redemption yield of -2.0234%. The transaction will settle, and the first tranche of this gilt will be issued, on 10 February 2021."

There is no shortage of capital available, so what problem is he seeking to fix?

Surely he is not proposing to pay rich Tory-voting pensioners above the going rate??”

Subscribe to read | Financial Times

[AtW]

Who is buying bonds with -2% yield?

Cretins and Central Banks.

Meanwhile credit card rates are 20%+ (and merchants pay a lot for transactions!)

[Whorty]

Top comment on FT -

“ A popover with more user information
14 HOURS AGO
(Edited)
What on earth is Starmer talking about? The UK government is raising money effectively below zero, in quantities higher than ever imagined (this from 9th Feb):

UK Regulatory Announcement: Issue of Debt | Business Wire

"The United Kingdom Debt Management Office (DMO) announces that the syndicated launch of £2.25 billion (nominal) of 0⅛% Index-linked Treasury Gilt 2051 has been priced at £189.697 per £100 nominal, equating to a gross real redemption yield of -2.0234%. The transaction will settle, and the first tranche of this gilt will be issued, on 10 February 2021."

There is no shortage of capital available, so what problem is he seeking to fix?

Surely he is not proposing to pay rich Tory-voting pensioners above the going rate??”

I'm not a Tory voter, but I feckin hope he's offering above the going rate Let the snowflake future generation pay for my retirement

[Whorty]

Who is buying bonds with -2% yield?

Cretins and Central Banks.

Meanwhile credit card rates are 20%+ (and merchants pay a lot for transactions!)

I'm sure I saw an advert the other day for Ocean Finance Credit card that was 40% Even in the late 80s/early 90s when bank interest rates were high the credit card rates were not over 30% (and that's the store cards).

These dodgy sub-prime lenders have a lot to answer to, but then so do those who keep borrowing on the never-never.

The world is mad.

[SueEllen]

I'm sure I saw an advert the other day for Ocean Finance Credit card that was 40% Even in the late 80s/early 90s when bank interest rates were high the credit card rates were not over 30% (and that's the store cards).

These dodgy sub-prime lenders have a lot to answer to, but then so do those who keep borrowing on the never-never.

The world is mad.

Ocean only allow you a credit limit of about £1,000 and they make it clear in their small print that their target client is someone who needs to build/rebuild their credit rating.