Skip to comments.Savers Told to Stop Moaning and Start Spending (Empty Your Bank Accounts!)
Posted on 09/27/2010 8:06:02 PM PDT by Dallas59
Older households could afford to suffer because they had benefited from previous property price rises, Charles Bean, the deputy governor, suggested.
They should "not expect" to live off interest, he added, admitting that low returns were part of a strategy.
His remarks are likely to infuriate savers, who are among the biggest victims of the recession. About five million retired people are thought to rely on the interest earned by their nest-eggs. But almost all savings accounts now pay less than inflation.
The typical savings rate has fallen from more than 2.8 per cent before the financial crisis to 0.23 per cent last month.
Mr Bean said he "fully sympathised". But he continued: "Savers shouldn't necessarily expect to be able to live just off their income in times when interest rates are low. It may make sense for them to eat into their capital a bit."
He added: "Very often older households have actually benefited from the fact that they've seen capital gains on their houses."
(Excerpt) Read more at telegraph.co.uk ...
Gee sounds so familiar. Although Obama does verbally assault and insult you first, then thinks we will go shop!
Mr. Bean could top anyone in this administration.
Agreed. Rowan Atkinson has had some very thoughtful and (for Europe) politically incorrect things to say about the Muslim conquest of Britain and the inviolability of free speech.
I think it’s worse in the USA. We’re making some adjustments to our saving/spending
Evil. Just plain evil.
Keynesian economics. These idiots think that spending grows the economy, when it is in fact investment, which comes from savings.
“Come on, you kulaks. Get with the program. We can’t have any hoarders and wreckers in this society.”
It’s my money, and unless the designers put something on the racks besides street walker clothes or clothes for the 20 somethings, I’ll stick to my 10 year old church dresses, and my jeans and T’s. This 62 yr old is NOT going to wear their garbage, that is made crappy with crooked seams, cheap material, and terrible designs.
Trying to build real prosperity by spending never works.
Exactly correct, it is simply a ‘boom’ that will soon end in a ‘bust’