Tuesday, September 28, 2010

War on savers

I was just reading an article (via Instapundit) about quotes from a Bank of England official. "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." "Mr. Bean said that encouraging Britons to spend was one reason why the bank had cut interest rates. They have been held at 0.5 per cent for 18 months, hitting rates offered on savings accounts."

Although I have heard lots of grumbling in internet comment boxes about the similar US policy, I don't think I have ever seen the issue so explicitly talked about either by a US official or in major US media. From the British, it's a very explicit attempt to starve out conservative savers and herd them into consumption. As I mentioned a few days ago, we just bailed out of a pathetic .1 percent money market into a slightly less pitiful 1.3 percent savings account.

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