Monday, July 19, 2010

"another door slammed in the face of savers"

I did not know that you could have been saving at NS&I with 100% gaurantee.   Now you can't, unless you already were.

Thursday, June 3, 2010

Study finds that a lack of numerical ability contributed to the subprime mortgage crisis. Poor numerical ability leads to poor financial managements. Gordon brown?

The study linked to below shows that poor numerical skills can partly explain why people defaulted on their subprime mortgages. The result accounts for social background and also the type of mortgage product, so those on the same product was more likely to default if their basic maths was poor. One explanation offered is that people with good basic maths skills are better at planning their finance and possibly being aware that in the good times you must save to prepare for the bad. I remember that Gordon Brown admitted that his maths was not very good. I also remember that Gordon brown spent loads of money when times were good and denied that the bad times would return.

Tuesday, May 18, 2010

UK Inflation; CPI is 3.7% and RPI is 5.3%

Savers are really getting screwed now. Best to spend your money, which sounds silly but it looks like the government likes inflation (we do need to reduce the debt) and government policy is for low interest rates.

One ray of hope, but will only count for a little:

You can get 5% (fixed until 1 June 2011) at northern rock with their ‘fixed rate regular savings account’. you can only put in £250 per month but access is easy

Monday, May 17, 2010

Coalition Government; Capital Gains tax and cutbacks

The changes to Capital Gains Tax will most likely result in low yield rental properties being sold off. Those who are into the property market long term will probably hold on as long as possible. Perhaps distressed sellers will come from public sector workers, who have second homes as an investment, that will lose out in the next two years, but the real cutbacks will only start next year. Still this (some short term selling off) should give some much needed volume to the market.

Meanwhile the Government keeps up its claim that its policies will keep interest rates down. The prudent will be bailing out the reckless for some time to come I think. Things will likely change next financial year. I expect 1 in 7 public sector workers will lose their jobs, either directly or as a result of lower temporary work, less holiday time, lower and fewer bonuses and a general reduction in other perks. The cutbacks in government spending will affect many lives in 2011/2012. The best advice would be for individuals to save now for those rainy days. Not much incentive to save now though.

Thursday, April 29, 2010

Gordon brown's gaffe

I find it annoying that they keep ignoring the fact that Gillian Duffy was continually making the point about the deficit and how it is going to be repaid. It is like the media wants to ignore this. Savers are paying for it and will continue to do so.

Saturday, April 17, 2010

Tuesday, April 13, 2010

ISA Season

Anyone considering taking out an ISA this year? Around 2.5% can be earned. Some people have mortgages that are below this.

With inflation now well above those ISA rates, it means that you really are paying for almost everything in the economy at the moment as long as you try to save.