For anyone still clinging to the idea that the EU is great...

[wandringstar]

low interest rates are a disaster for the housing market, people borrow too much at lower rates, so the house price goes higher, its a distortion of reality.

 

imagine the base rate being a normal amount as from tomorrow, say 4%, the carnage would be unimaginable, pegging them back can only work for so long, so can the lunatic idea of printing money.

 

i think its true, that there are more savers than borrowers, its time they had some income from their little pots.

[mick miller]

Savers don't help the economy. The economy needs more spenders.

Edited February 3, 2017 by mick miller

[wandringstar]

oh yes they do, self reliance and less dependency on the government, is the number one thing people should aim for.

 

Saving gives stability to individuals, creating better societies.

[mick miller]

What would happen, in your world, if every single penny that could be saved was saved, say after 10 years? Would business be thriving and employment up? Because I think you may be a bit surprised.

[wandringstar]

who mentioned every penny?

 

that would just be ridiculous.

 

 

in my world

[AVB]

Savings are dead money. You do need money to be spent for an economy to grow.

 

In theory an environment where every penny was spent, none saved and none borrowed would give you the perfect outcome. Theory though. Save too much - the economy stagnates, borrow too much - the economy overheats. It's about balance.

[wandringstar]

hey AVB, trump must have been reading, he has just ordered a review into what he calls the disastrous dodd frank regulations.

[AVB]

hey AVB, trump must have been reading, he has just ordered a review into what he calls the disastrous dodd frank regulations.

He probably does read PW. He must get advice from somewhere and some of it on here is good. What's your view then on Dodd Frank and Trumps review of it?

[wandringstar]

i must admit, my knowledge is very basic, and i am not a one to google cram, and make out i knew. But here is a man, who has lived and breathed finance, and he is echoing what you said about over-regulation stifling the banks and crippling their avenues of profit.

 

my gut feeling is that dodds frank was a good idea to protect consumers, but it went too far, and now it may need looking at.

[AVB]

i must admit, my knowledge is very basic, and i am not a one to google cram, and make out i knew. But here is a man, who has lived and breathed finance, and he is echoing what you said about over-regulation stifling the banks and crippling their avenues of profit.

 

my gut feeling is that dodds frank was a good idea to protect consumers, but it went too far, and now it may need looking at.

Personally I think he should have left it alone. For a while at least. It may have need tinkering with but didn't think it needed a drastic overhaul.

[mick miller]

i am not a one to google cram, and make out i knew.

 

My job is safe then!

[wandringstar]

[Vince Green]

That's the modern view but not the old view. Years ago people saved their money and put in in the bank, the bank then lent the money to build factories, ships, railways etc and by that means wealth was created and it was real wealth.

 

After WW2 debt replaced money as the commodity, now there is only virtual money

 

Savings are dead money. You do need money to be spent for an economy to grow.

In theory an environment where every penny was spent, none saved and none borrowed would give you the perfect outcome. Theory though. Save too much - the economy stagnates, borrow too much - the economy overheats. It's about balance.

[wandringstar]

I think that debt for a home or business reason is ok, anything frivolous or unnecessary is crazy, unless the repayments are a walk in the park.

[old man]

That's the modern view but not the old view. Years ago people saved their money and put in in the bank, the bank then lent the money to build factories, ships, railways etc and by that means wealth was created and it was real wealth.

 

After WW2 debt replaced money as the commodity, now there is only virtual money

 

Could that be why we have virtually none?