Question for those of you with savings in the bank(s)

[gingerjedi]

My father in law has spent most of his money on classic motorbikes, he has half a dozen Triumphs’, Norton's and BSA's etc all polished up in his garage.

He’s done this for inheritance tax purposes so they're probably all in my wife's name.

[PM-Junkie]

Before they went lending the banks our money, why didn't the government tie them down with what they could do with it? e.g. no big bonuses, open up lending to businesses, don't lend higher than 3 or 4*salary for mortgages, carry out due diligence before buying debt assets, etc.

OK, I'll make a wild guess.

Because they are incompetent idiots?

[Incognito]

Just wait till the government realises it needs to start soaking up all that extra money floating round and watch interest rates shoot up. Oh joy.

[Bagpuss]

What are you going to do now that:

Interest rates are practically zero and are well below inflation

Quantative Easing means the printing presses are going to be issuing £10,000,000,000 notes soon and hence your savings aren't going to buy a cup of coffee


Are you going to shift your money to another currency, buy gold, buy property or what?

Nice Daily Mail panic there!

There are still some savings deals e.g. Halifax 3 months fixed saver circa 3.5%

The recession is beneficial to those with cash because you can negotiate big discounts on assets or conspicuous consumption.
I'm going to sit tight for 6 months or so and then consider buying repo property

[Cyberman]

Everybody seems to be ignoring the real danger of hyper-inflation which could be the result of increasing the money supply. I predict 10-15% inflation within a few years unless interest rates go to 10-15%.
This will be a disaster for pensioners in particular, but also for mortgage holders, and will cause a further recession as spending-power is yet again taken out of people's hands by incompetent HMG policy.

[Bagpuss]

No idea what he said, but no doubt interest rates should have been lower sooner, northern rock etc?

[Incognito]

Everybody seems to be ignoring the real danger of hyper-inflation which could be the result of increasing the money supply. I predict 10-15% inflation within a few years unless interest rates go to 10-15%.
This will be a disaster for pensioners in particular, but also for mortgage holders, and will cause a further recession as spending-power is yet again taken out of people's hands by incompetent HMG policy.

You're ignoring post 13

[Bagpuss]

Now that is funny! Mr "interest rates should have been lower sooner" is now asking for them to be raised to 10-15%

He truely is a Terry Fookwit or a badly designed Troll


In reality I expect his joy at a cheaper mortgage has now been offset by the fall in all of his assets i.e. he's realised a net loss from this mess.

[gingerjedi]

No idead what he said, but no doubt interest rates should have been lower sooner, northern rock etc?

He said he regrets being a dimwit by investing in NR & EL as he didn’t see it coming… he then goes on to make some random predictions based on his infallible insight.

[Cyberman]

He said he regrets being a dimwit by investing in NR & EL as he didn’t see it coming… he then goes on to make some random predictions based on his infallible insight.

Perhaps I will have the last laugh with my 3-4 quid per share compensation, as predicted by the experts.

Infallible insight ? No, I've just lived under failing Labour governments before.