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February 16th, 2012 
FAKE NEWS for the Zionist agenda
By
Chris Parsons
Last updated at 12:11 PM on 16th February 2012
Homeowner help: Record low interest rates could help millions with their mortgages
Cheap home loans could give millions of home owners a boost for another five years thanks to record low interest rates, experts revealed.
Optimism over mortgages rose last night following the Bank of England’s latest economic forecast, despite the low rates spelling gloom for savers.
The Bank of England Governor Sir Mervyn King said yesterday he had ‘deep sympathy’ with savers who are receiving ‘negligible’ returns through no fault of their own.
Sir Mervyn hinted that the base rate
will stay at its historic 0.5 per cent low until 2014, with some experts
predicting it could last for up to three after that.
Low interest rates have also enabled
lenders to offer some of their cheapest ever deals to borrowers,
although lending criteria is expected to get tougher this year amid the
weak economic backdrop.
Howard Archer, of IHS Global Insight,
said: ‘We are sticking to our view that interest rates will not rise
until at least 2013 and could very well stay at 0.5 per cent until
2014.’
Sir Mervyn had said the economy was
‘moving in the right direction’ although it would ‘zigzag’ in and out of
growth in 2012 and faced ‘choppy waters’ including the risk from the
eurozone crisis.
The Bank of England Governor was
accused yesterday of ‘sacrificing savers’ by claiming that increased
interest rates would drag the UK back into recession.
The Bank of England’s latest quarterly inflation report fueled predictions of low interest rates lasting for another two years.
Sir Mervyn denied suggestions that the Bank was giving the impression it was not worth saving, saying: ‘No, we’re not sending out any such message at all and indeed you can see that households believe that it is, because their savings have gone up, not gone down.
‘One of the reasons for slow growth in the last year was weakness of consumer spending and higher savings by households.
Future interest rates?: Published by the Bank of England on 15 February, this shows the market’s expectation for the base rate now versus three months ago
RateGuard warns of how interest rates, over the past 50 years, have sometimes risen rapidly.
‘I have deep sympathy with those who, totally unconnected with the origins of this crisis, suddenly find that the returns on their savings have reached, as I said, negligible levels.’
He said increasing interest rates to 4% or 5% would give the impression that savings returns had gone up, but this would lead to the value of assets decreasing, falls in investment and consumer spending and a return to recession.
He continued: ‘I think that many savers would find that the value of their wealth would fall more than enough to offset the apparently higher yield and everyone would be worse off.
‘So difficult though it is I think what we have to do is to make what is a difficult judgment about the right course of action for the economy as a whole.
Difficult times: Governor of the Bank of England, Mervyn King, warned that the UK economy remained in ‘choppy waters’
The Bank of England has unleashed a £325bn quantitative easing programme in order to prevent ‘a worse recession than in the 1930s’
‘All groups in society are suffering from the consequences of the financial crisis.
‘Our judgment has to be what is the right course of action eventually to steer the economy back to low inflation close to the target and steady growth.’
Sir Mervyn said that moving to steady growth and a more normal level of interest rates ‘will take time’.
But Simon Rose, spokesman for campaign group Save Our Savers, said that the harmful effects on people’s savings were undermining investment and growth.
Mr Rose said of Sir Mervyn’s comments: ‘Perhaps he needs to go back and look at his textbooks again.
‘Prolonged low interest rates are a terrible thing. Savers are angry and they are dismayed.’
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Despite the red arrows, John @ 1841 does make a valid point. Most working class people don’t have any money to save once the bills are paid. Even the middle classes are struggling to save unless they sacrifice their lifestyle.
It makes me wonder why people are encouraged to save..? The cost of living will always rise faster than the value of savings with interest… No matter how much you save, your money will be worth less when you withdraw it that it was worth when you deposited it. Who benefits? Well, the banks get more money to gamble with. The government gain tax on your interest. Spending stimulates real commerce and industry – Saving allows the banks and the government to destroy it.
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didums savers cant save. my heart bleeds!
normal people who dont’t have 100k coming into the house every year have to spend all their cash each month to stay afloat!
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” The Bank of England Governor Sir Mervyn King said yesterday he had ‘deep sympathy’ with savers who are receiving ‘negligible’ returns through no fault of their own. ” Crocodile tears and unctuous b-s. If I wrote what I’d like to see happen to the bankers (and to Brown’s crew, for helping it to happen), I’d probably get arrested for hate speech. The bankers are no better than thieves, and they know that the savers have no alternative investment solutions to help them out of this crippling mess THAT THEY CREATED THROUGH GREED AND STUPIDITY. And what are Cameron and Osborne doing about it? Sweet f-a, because their own fortunes are secure. Typical Tories, in fact – apart from the fact that they only got into power because they were considered by the LibDems to be marginally less odious than New Labour. What sort of way is this to run a country? The only way forward that I can see is to draw and bury our money, and then claim Benefits for everything under the sun.
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“With house prices still far too high based on any sensible measure of affordability it is more than a little dispiriting seeing those who over stretched themselves to buy homes at over inflated values (or remortgaged to spend money on rubbish) are bailed out at the expense of those of us who thought we were doing the sensible thing by saving for a deposit. Now, not only is the government propping up house prices but they are also decimating my savings in a high inflation/low interest rate environment. Rates need to be put up at some point, it would be better to do this sooner rather than later…. ” – Liz, Edinburgh, 16/2/2012 18:06 ——- Just look at the parallels of our current situation with the situation in Japan from the late eighties to the present day. You really think interest rates are going up anytime soon? We are probably 5 years into a 20-30 year period of hell.
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With house prices still far too high based on any sensible measure of affordability it is more than a little dispiriting seeing those who over stretched themselves to buy homes at over inflated values (or remortgaged to spend money on rubbish) are bailed out at the expense of those of us who thought we were doing the sensible thing by saving for a deposit. Now, not only is the government propping up house prices but they are also decimating my savings in a high inflation/low interest rate environment.
Rates need to be put up at some point, it would be better to do this sooner rather than later….
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Low mortgage interest rates are all very well, if you have a property, or have the 20 % deposit to get one. For us (and we both work) the chance of raising a deposit is a still pipe dream, at our current rate of savings we will be retired long before we have enough, with the cuts in our pension and the extension of our working lives, looks like we would have had to spend our savings long before we can approach any bank. The plus side is, that if we did have a mortgage we could actually save real money. Ah well, back to flattening out the lumps in the mattress.
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Since there are 7 times more savers than borrowers, when the savers money runs out because of near zero interest rates, what is Cameron going to do then, we’re heading over the cliff and Cameron is behind us with a bulldozer.
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Mark, Hertford, I totally apologise, it’s some other idiot who has absolutely no idea what they’re talking about, not you! Trust me, unless the person you quoted has had his mortgage for over 4 years he’s lying about his interest rate. Ours truly was the best on the market and we had to see 3 mortgage advisors before they eventually accepted that we could do better than ANYTHING they told us about (First Direct doesn’t use outside mortgage advisors, they don’t need to. Their products are good enough to have people queueing up for them.) To maximise savings nowadays you have to lock them away or to be even smarter, if you do have a mortgage overpay on that instead of worrying about what little interest you’re going to get. We do all of the above (we overpay, we reinvest, we lock money away but we keep some handy just in case something nasty should crop up.) Spend a hundred on your mortgage, save a thousand in the long run!
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Yes you can shop around and I do not see why, often , a measure of our prosperity is the supposed improvement in property values. What I would ask is why those people who depend upon borrowing money to buy a house, which long term is a secure investment, expect to be able to do it at the expenses of not giving a fair savings rate to savers. It is a simple truth, without savers people can not borrow. Where do people think their mortgage funds come from? And so those with substantial life time savings feel obliged to join the property market as 2nd 3rd or more times buyers and, sadly those with funds will normally outbid the would be first time buyer. Don’t blame the new landlords trying to protect their savings, as a senior they have lost their earning power. If ever the only rate I can get is a derisory amount I will withdraw my money from the building society and keep it under the bed. All I want is fair returns not to see my prudent life style stolen to pay for spendthrifts debtors
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Too many people spouting about low interest rates on their savings. I for one am welcoming it, it means the mortgage is cheaper. Not my fault if you’d rather spend what you’re saving on your mortgage interest. And btw Mark, Hertford, seeing as though I’m with First Direct for current accounts, esavings, and our mortgage, your figures are totally wrong. The lifetime tracker is 2.59% above the BoE base rate and the 8% savings you talk about is 8% net not gross and you’re also failing to mention that you’re only allowed one of those accounts. You are NOT allowed to have any more than £3600 in it and the account is closed after exactly 1 year. After that the balance is transferred to a current account or 0.5% gross savings account. You’re also failing to mention that in order to have a First Direct account you need to deposit a certain amount each month or else you pay a fee, something out of many peoples reach. Print FACTS next time and I won’t argue with you.
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