Feb 23
Thursday

Why are we in this mess?

We are in the current economic situation because of excessive lending over the last few years.

What is the government's preferred solution? To drop interest rates to ridiculously low levels and to force the banks to continue to lend at unsustainable levels.  That's about as sensible as offering a drug addict cheaper heroin and forcing the dealers to supply as much as the addict wants.

Who is being punished?

Savers!! The people who are prudently saving for their retirement or living off their savings.

The problem is not the cost of lending. it is the availability of lending. Ask yourself a simple question "Who provides the funds to lenders?" - the answer is simple, SAVERS. So why make it less attractive to savers at the very time you need them?

Next - 0% Interest Rates?

The spectre of ZERO% interest rates is looming and that is not funny.

Its time the down trodden saver did something. To date we've had no power but this website aims to change this.

Higher Depositor Protection PDF Print E-mail

Why do we need higher depositor protection?

Until recently those with substantial deposits felt that their money was safe with the biggest names and so large numbers of depositors kept significantly more that the £35,000 protection levels with the savings institution of their choice.

The recent turmoil in the market has severly undermined confidence in these institutions so depositors are spreading their money around putting no more than £50,000 in any one institution.  This means that small institutions are gaining a dramatically increase market share of deposits which makes it even more difficult for the largests banks to raise the funds they need to lend legitimately to businesses in the UK.

In other words a small building society or supermarket bank is poaching significant deposits from the big high street banks at the same time that these banks are being admonished for not lending to the small business sectore.

If the savings protection limit was increased dramatically to, £250,000 per institution, say then there would be no need for savers to spread their deposits between different organisations and the big banks would be more able to attract the deposits they need to fund their lending activities.