Brexit and savers interest rates
Discussion
crankedup said:
ClaphamGT3 said:
As someone with no mortgage and a reasonable amount stashed under the mattress, so to speak, I get really, really tired of 'savers' (usually pensioners) moaning about interest rates.
Yes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
Why the angst?' You come across as a first rate tYes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
t.It's a perfectly civil question to ask isn't it and one that forum members may like to discuss.
Remember we are alluding to the same demographic that is sitting on enormous property wealth. I appreciate I am generalising.
ClaphamGT3 said:
there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
Absolutely. You could take it all to a casino and stick it on red - you'd earn 100% interest then - don't know what they're all moaning about! 
Of course you could also lose the lot, but this is the theoretical world of Pistonheads where making loadsa money is easy innit
Jockman said:
crankedup said:
ClaphamGT3 said:
As someone with no mortgage and a reasonable amount stashed under the mattress, so to speak, I get really, really tired of 'savers' (usually pensioners) moaning about interest rates.
Yes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
Why the angst?' You come across as a first rate tYes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
t.It's a perfectly civil question to ask isn't it and one that forum members may like to discuss.
Remember we are alluding to the same demographic that is sitting on enormous property wealth. I appreciate I am generalising.
Personally I have a pride in where I live and do not take unfounded insult to it and its people, including me, lightly. Taking all this into consideration you may understand my short shift reply to yet another of his lightweight idiotic replies to my question.
crankedup said:
Jockman said:
crankedup said:
ClaphamGT3 said:
As someone with no mortgage and a reasonable amount stashed under the mattress, so to speak, I get really, really tired of 'savers' (usually pensioners) moaning about interest rates.
Yes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
Why the angst?' You come across as a first rate tYes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
t.It's a perfectly civil question to ask isn't it and one that forum members may like to discuss.
Remember we are alluding to the same demographic that is sitting on enormous property wealth. I appreciate I am generalising.
Personally I have a pride in where I live and do not take unfounded insult to it and its people, including me, lightly. Taking all this into consideration you may understand my short shift reply to yet another of his lightweight idiotic replies to my question.
JagLover said:
It is not particularly healthy for a society or economy for the "risk free" rate of return to be negative after inflation.
Why not? I'd suggest recession, unemployment and deflation are considerably worse than some very marginally negative real rates. The only losers in a world of marginally negative real rates are those with cash savings that significantly exceed the value of all their other assets. Most of those complaining usually forget their other assets.JagLover said:
This is a policy that is supposed to stimulate spending and borrowing and yet the average person now needs to save more to achieve the same income in retirement.
Is that true? Granted, QE lowers term yields which increases the price of an annuity but it also boosts the price of stocks and bonds which typically make up the investments of said pension. Had aggressive global action (QE/ZIRP) not been taken to prop up the economy I'm far from convinced the pension situation would be better for savers!JagLover said:
The quest for any sort of return has created a number of bubbles, most noticeable in property with the BTL boom.
BTL boom started well before 2008. Once Brown stuck his stupid fat face into private pensions it became pretty clear BTL offered a better return, perhaps more so with hindsight but I did put my money where my mouth is and stopped paying into pensions and bought property in the early 2000's.JagLover said:
The present is hardly unique in having low inflation. It is claimed there was no net inflation in the entirety of the 19th century for example as the gold standard and productivity increases meant prices were as likely to rise as fall. BOE Interest rates however never dropped below 2% and were often much higher.
Credit was only available to the 99% at usurious rates back then. I don't follow how base rates under a gold standard have anything to do with todays situation.JagLover said:
Clearly the financial crises required a response but a more ambitious QE programme that funded productive activity combined with more "normal" interest rates would probably have been a better option.
QE is not focused. By doing nothing other than buying up government debt, it allows government and corporates to borrow at artificially low rates during periods of fiscal stress; it drives down long end yields forcing investors to seek alternative investments; it increases the money supply to provide more credit (all the same thing really). A programme that specifically funded productive activity would not be a QE program but more like TARP; specific targetted lending but with the added proviso that it could be for defined projects not just to rescue strategically important industries/ restore confidence. In theory it sounds good but who decides what is a worthwhile 'productive activity'? The millenium dome, HS2, Trident, Crossrail, M6 Toll, NHS computer system? You see the problem... the bulk of spending/stimulous would also come many years if not decades after it was needed. I still like the idea of a funded SWF to take on some of these projects that are too big for the private sector that would provide a solid ROE for taxpayers, not sure why it should only exist in a crisis though. Higher interest rates makes no sense at all and is in no way a "better option"; economy booms, fine you'll get higher interest rates but raising rates doesn't improve the economy, you're putting the cart ahead of the horse.Edited by anonymous-user on Monday 23 May 16:21
crankedup said:
...
What happens o this situation post our exit of the EU
It gets better as it's a well known FACT that anyone over 60 will be euthanised immediately following a Brexit vote.What happens o this situation post our exit of the EU
Derek Smith said:
...
So the odds seem to be that there will be some fluctuation in the short term.
No sSo the odds seem to be that there will be some fluctuation in the short term.
t Derek. You should have been a trader 
It has always been thus, and will always be thus.
crankedup said:
Clapham responded to one of my previous innocent posts regarding small towns. He said that my home town is vile with vile people living in the town. He went on with various other insults, fair enough to have an opinion but when he couldn't respond to my pointing out several National ratings which were all highly positive to the town. Increasing numbers of International visitors, voted in the top twenty of best small towns, our beautiful Cathedral and Gardens, Medival Grid in the centre of town and theatres, restaurants, clubs it was obvious his post was no more than an unintelligent non researched off the cuff insult.
Personally I have a pride in where I live and do not take unfounded insult to it and its people, including me, lightly. Taking all this into consideration you may understand my short shift reply to yet another of his lightweight idiotic replies to my question.
I thought you were approaching your twilight years cranky...you should be above such things by now, surely? If you love the place you live in, who cares if someone else thinks it's a sPersonally I have a pride in where I live and do not take unfounded insult to it and its people, including me, lightly. Taking all this into consideration you may understand my short shift reply to yet another of his lightweight idiotic replies to my question.
t hole? The world's a large place. You can always find someone who thinks anywhere is a st hole.And to answer cranky's question, if you vote leave the 2 years of exit negotiations will create uncertainty, never good for the economy, the currency will likely take a bit of a dive making imports more expensive and might increase cpi slightly, people will squeal that rates will have to go up but the stock market and house prices will not allow the bank to hike. If you stay in, nothing changes other than gbp will get a bit stronger which will put further downward pressure on cpi so they are in no danger of hiking any time soon either.
Murph7355 said:
Derek Smith said:
...
So the odds seem to be that there will be some fluctuation in the short term.
No sSo the odds seem to be that there will be some fluctuation in the short term.
t Derek. You should have been a trader It has always been thus, and will always be thus.
He said that most experts were of the opinion that there would be a period of fluctuation after a leave vote, even before the actual parting of the way. The rates would, most likely, increase, but no one would say beyond the short term.
I then summed up my post with a one-liner. That's not concrete, just what most people with some expertise think.
A graph of interest rates would, I think, show a more stable interest rate over recent years. The rate does, of course, vary but there seems little likelihood of any substantial variation in the near future unless we vote to leave.
If there is something else that hikes interest rates, the effect of brexit will probably increase it.
Whilst no one can say for sure, and informed opinion is not guesswork.
Derek Smith said:
I think the graph you posted was very interesting and could give rise to a discussion about the effect of the FTSE post exit vote, but that would be another thread. After posting:
He said that most experts were of the opinion that there would be a period of fluctuation after a leave vote, even before the actual parting of the way. The rates would, most likely, increase, but no one would say beyond the short term.
I then summed up my post with a one-liner. That's not concrete, just what most people with some expertise think.
A graph of interest rates would, I think, show a more stable interest rate over recent years. The rate does, of course, vary but there seems little likelihood of any substantial variation in the near future unless we vote to leave.
If there is something else that hikes interest rates, the effect of brexit will probably increase it.
Whilst no one can say for sure, and informed opinion is not guesswork.
What interest rates are you talking about? Do you know?He said that most experts were of the opinion that there would be a period of fluctuation after a leave vote, even before the actual parting of the way. The rates would, most likely, increase, but no one would say beyond the short term.
I then summed up my post with a one-liner. That's not concrete, just what most people with some expertise think.
A graph of interest rates would, I think, show a more stable interest rate over recent years. The rate does, of course, vary but there seems little likelihood of any substantial variation in the near future unless we vote to leave.
If there is something else that hikes interest rates, the effect of brexit will probably increase it.
Whilst no one can say for sure, and informed opinion is not guesswork.
I heard an expert say that the interest rates would go up and there would be a recession.
I heard another expert say that house prices would fall and builders would build fewer houses.
I'm no economist but haven't they essentially said that it will rain and the ground won't get wet? Or the sun will go out and it will still be sunny?
I heard another expert say that house prices would fall and builders would build fewer houses.
I'm no economist but haven't they essentially said that it will rain and the ground won't get wet? Or the sun will go out and it will still be sunny?
FFS, the entire EZ is in the st already, so in or out we're gonna have a st time for the next 5 years.
The question is a non-issue.
The best you can do in either case is really go through your spending, savings, and get everything sorted out and working best for you, cut all the fat etc.
If you really work hard you should be able to get 4% growth on cash in the bank/bs.
I'm gambling that BTC and LTC will double again in the next year so I'm putting a bit of cash there.
t already, so in or out we're gonna have a st time for the next 5 years.The question is a non-issue.
The best you can do in either case is really go through your spending, savings, and get everything sorted out and working best for you, cut all the fat etc.
If you really work hard you should be able to get 4% growth on cash in the bank/bs.
I'm gambling that BTC and LTC will double again in the next year so I'm putting a bit of cash there.
Mr Whippy said:
FFS, the entire EZ is in the st already, so in or out we're gonna have a st time for the next 5 years.
The question is a non-issue.
The best you can do in either case is really go through your spending, savings, and get everything sorted out and working best for you, cut all the fat etc.
If you really work hard you should be able to get 4% growth on cash in the bank/bs.
I'm gambling that BTC and LTC will double again in the next year so I'm putting a bit of cash there.
Double? Jesus, it's already at $460 odd. Or you miss a smiley?t already, so in or out we're gonna have a st time for the next 5 years.The question is a non-issue.
The best you can do in either case is really go through your spending, savings, and get everything sorted out and working best for you, cut all the fat etc.
If you really work hard you should be able to get 4% growth on cash in the bank/bs.
I'm gambling that BTC and LTC will double again in the next year so I'm putting a bit of cash there.
Might want to hedge that in Ether. Or Duracell & 5.56mm.
Or is magic beans the new flight to quality?
Anyway, if we Brexit, savers won't get full benefit of BOE rate adjustment as volitility will increase. Banks need to hedge this, I wouldn't be getting too excited (no matter how hard done by you all feel).
Derek Smith said:
fblm said:
What interest rates are you talking about? Do you know?
And there's me thinking I'd said that in the earlier post.Derek Smith said:
A graph of interest rates would, I think, show a more stable interest rate over recent years. The rate does, of course, vary but there seems little likelihood of any substantial variation in the near future unless we vote to leave.
The base rate has not moved a single basis point since 2009. Why would the BoE hike base rates if you leave? Do you or the many experts you claim to be summarising predict higher employment, wages, stock market and housing if you vote to leave? Derek Smith said:
If there is something else that hikes interest rates, the effect of brexit will probably increase it.
Whilst no one can say for sure, and informed opinion is not guesswork.
Er...Whilst no one can say for sure, and informed opinion is not guesswork.
FourWheelDrift said:
otherman said:
What impact will brexit have on the crispiness of bacon?
I think Cameron said leaving the EU will result in limp bacon.In reply to the OP on a more serious note the BOE aren't changing interest rates any time soon so why would they if over the next decade we decide to very very slowly leave the EU? Nothing is going to change for years.
Derek Smith said:
If there is something else that hikes interest rates, the effect of brexit will probably increase it.
Whilst no one can say for sure, and informed opinion is not guesswork.
If Brexit has a short (or even medium) term negative effect then base rates will not be raised. If it has a positive effect then it brings forward a rate rise.Whilst no one can say for sure, and informed opinion is not guesswork.
ClaphamGT3 said:
crankedup said:
Jockman said:
crankedup said:
ClaphamGT3 said:
As someone with no mortgage and a reasonable amount stashed under the mattress, so to speak, I get really, really tired of 'savers' (usually pensioners) moaning about interest rates.
Yes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
Why the angst?' You come across as a first rate tYes, rates are currently at historic lows - get over it. It's a policy that's unlikely to change any time soon and one that is pathetically easy to do something about; there are plenty of investment options that will see your money making far more than your savings account, so stop moaning and start actively managing your money rather than bewailing that the magic money tree isn't making it grow faster than inflation at the moment
t.It's a perfectly civil question to ask isn't it and one that forum members may like to discuss.
Remember we are alluding to the same demographic that is sitting on enormous property wealth. I appreciate I am generalising.
Personally I have a pride in where I live and do not take unfounded insult to it and its people, including me, lightly. Taking all this into consideration you may understand my short shift reply to yet another of his lightweight idiotic replies to my question.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff