The folly of undermining savings

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Simon Rose of Save Our Savers was interviewed on BBC Radio Humberside on 19th June.

During a wide-ranging discussion presenter James Piekos brought up a point frequently made when Save Our Savers complains that low interest rates are grossly unfair to savers. He said that, for mortgage holders like himself, these are great times, with rates incredibly low.

Simon pointed out why that common – but short-sighted – attitude conceals the considerable long-term economic damage that the suppression of interest rates is causing. The politically expedient policy of avoiding pain for those with mortgages and others is actually undermining the economy depends. Without savings, there can be no growth.

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2 Comments

1. STEPHEN SLATER

   June 19, 2012 at 9:38 pm

   Where does James Piekos think that building societies get their funds from if not from savers? He would probably also want to ban bus passes and free prescriptions too, no doubt

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2. frances

   June 20, 2012 at 10:57 pm

   Even the Bank of England admitted today that long term the DAMAGE to the country of the last 3.5 yrs of low interest rates will be colossal

   All the QE etc of the last 3 years has simply been stopgap /attempts at putting out the flames

   Sooner or later the establishment will have to wake up to reality and realise that low interest rates and the lack of savings and the theft of savers money is a price the country cannot afford and the Bank bonus scandal must also srop

   ROLL ON THE DAY WHEN INTEREST RATES DO RISE and dont expect me to have any sympathy whatever for mortgage holders they have had things far far too cheap for far too long at the expense of my generation who scrimped and scraped and went without hoping to at least have comfort in our old age

   Instead thats been stolen by idiots who took on credit after credit after credit and loans they could never afford which is something we never ever did

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