09 Sep 19
https://www.tellerreport.com/business/2019-09-09----negative-savings-interest-for-consumers-seems-inevitable--.Sy-CEWdQUB.html
Well, that's just great. Why save some money for a rainy day, right? Just spend it all.
Just to be clear: this, like so many things, will affect the average person way harder than the rich people. That's good policy right there.
Oddly enough, I've been hearing for quite a few years how the economy is doing very well. Yet this type of policy seems necessary to "stimulate the European economy".
09 Sep 19
@great-king-rat saidIsn't this happening already when you factor in tax on interest earned and inflation (another form of tax). Most savings are going backwards.
https://www.tellerreport.com/business/2019-09-09----negative-savings-interest-for-consumers-seems-inevitable--.Sy-CEWdQUB.html
Well, that's just great. Why save some money for a rainy day, right? Just spend it all.
Just to be clear: this, like so many things, will affect the average person way harder than the rich people. That's good policy right there.
Oddly ...[text shortened]... omy is doing very well. Yet this type of policy seems necessary to "stimulate the European economy".
09 Sep 19
@wajoma saidYes, it's already been going backwards for quite a few years. But the psychological line of zero percent has yet to be touched on, let alone negative percent.
Isn't this happening already when you factor in tax on interest earned and inflation (another form of tax). Most savings are going backwards.
In Denmark it has already happened, but only for large sums of money.
This is likely going to result in a) people removing their money from Dutch bank accounts as much as possible and b) average people getting more desperate in trying to get some worth out of their money.
It has disaster written all over it.
09 Sep 19
1 edit
@great-king-rat saidI have some blue chip US stock which is being undermined by Trump’s big mouth and various US based medical lawsuits, so I’ll just leave it where it is and hope it all comes good. Meanwhile any savings I have are in low interest but fixed rate bonds. I’ve also invested in UK premium bonds in the vain hope that I’ll become a millionaire! They are proving reasonably reliable in the small dividend area. I looked at stocks and shares ISAs in the uk but didn’t feel included to invest. I just don’t trust the investment companies and the stock market is to unpredictable for the potential return.
https://www.tellerreport.com/business/2019-09-09----negative-savings-interest-for-consumers-seems-inevitable--.Sy-CEWdQUB.html
Well, that's just great. Why save some money for a rainy day, right? Just spend it all.
Just to be clear: this, like so many things, will affect the average person way harder than the rich people. That's good policy right there.
Oddly ...[text shortened]... omy is doing very well. Yet this type of policy seems necessary to "stimulate the European economy".
Rank Outsider may have an opinion on this stuff.
@wajoma saidShh!
Isn't this happening already when you factor in tax on interest earned and inflation (another form of tax). Most savings are going backwards.
Government needs to keep spending more and more and more...........
After all, massive debt and subsequent economic ruin is an inalienable right don't ya know.
@divegeester saidThe notion that the average Working Class Hero should look towards the stock market rather than his bank savings account for his savings to become somewhat profitable is ludicrous and yet this is precisely what the ECB is causing to happen.
I have some blue chip US stock which is being undermined by Trump’s big mouth and various US based medical lawsuits, so I’ll just leave it where it is and hope it all comes good. Meanwhile any savings I have are in low interest but fixed rate bonds. I’ve also invested in UK premium bonds in the vain hope that I’ll become a millionaire! They are proving reasonably reliabl ...[text shortened]... t is to unpredictable for the potential return.
Rank Outsider may have an opinion on this stuff.
I opened up a new account five years ago, put in a nice sum of money with the promise that I wouldn't take it away for at least ten years. I'm making 1% interest.
Don't touch your 25000 euros for one whole year and make 250 euros!!
At this point I am hoping for a massive bank run all over the country.
09 Sep 19
@great-king-rat saidThe only entity that is reliable for money is the government.
The notion that the average Working Class Hero should look towards the stock market rather than his bank savings account for his savings to become somewhat profitable is ludicrous and yet this is precisely what the ECB is causing to happen.
I opened up a new account five years ago, put in a nice sum of money with the promise that I wouldn't take it away for at least ...[text shortened]... year and make 250 euros!!
At this point I am hoping for a massive bank run all over the country.
After all, they print it at will.
Now if only we could all do that. In fact, why not?
10 Sep 19
How the hell do people just not care about this??
Decisions directly made by the almighty ECB, affecting ordinary citizens in a really, really bad way. Regular savings accounts becoming near worthless. Interest moving towards zero percent. In some cases already below zero.
Kazet, Shav, Rank.... How the hell does this not piss you off?
11 Sep 19
@great-king-rat saidBecause you made a bad decision to lock up your money in a 10-year CD paying 1% means that low interest rates are bad policy?
The notion that the average Working Class Hero should look towards the stock market rather than his bank savings account for his savings to become somewhat profitable is ludicrous and yet this is precisely what the ECB is causing to happen.
I opened up a new account five years ago, put in a nice sum of money with the promise that I wouldn't take it away for at least ...[text shortened]... year and make 250 euros!!
At this point I am hoping for a massive bank run all over the country.
I don't understand your point.
Interest rates in a vacuum are meaningless. If there were no inflation, interest would be unnecessary for savings accounts.
Right now, inflation is low. Interest rates may be lower, I'll grant. But if you're fortunate enough to have the dough to put away then get off your behind and find something to invest in. It doesn't have to be a stock. Invest in real estate or life insurance or whatever.
Your investing ineptitude is not society's problem.
12 Sep 19
@sh76 saidInterest rates so low that they discourage saving in traditional places like saving accounts encourage the creation of dubious high risk instruments like the mortgage based securities, CDOs and like vehicles.
Because you made a bad decision to lock up your money in a 10-year CD paying 1% means that low interest rates are bad policy?
I don't understand your point.
Interest rates in a vacuum are meaningless. If there were no inflation, interest would be unnecessary for savings accounts.
Right now, inflation is low. Interest rates may be lower, I'll grant. But if you're fortun ...[text shortened]... in real estate or life insurance or whatever.
Your investing ineptitude is not society's problem.
We saw the effect of such speculative instruments in 2008.