In message , Rod Speed
writes


"bert" ] wrote in message
...
In message , Mark
writes
On Thu, 21 Feb 2013 09:40:47 +0000, Broadback
wrote:

On 20/02/2013 23:48, Dave Plowman (News) wrote:
In article ,
bert ] wrote:
Just to come vaguely back onto group topic, pensioners have to hire
people to do more jobs for them which younger people can DIY

That may be the case at some point, but you don't automatically become
decrepit the second you get an OAP.

As an OAP I find it odd that as, on average, high savings accounts,we
are penalised by inflation eating the value away

Inflation affects everyone. Many working people have had little or no
pay rises (and some have had pay cuts) over the last few years.

while interest rates
are kept low so that the provenders can have it relatively easy. Who is
subsidising whom?

The poor subsidise the rich. Borrowers always pay higher interest
rates than savers get.

Anyway low interest rates are essential in preventing the financial
crisis being much worse.

But the law of diminishing returns applies.

Sure, and once you get to zero, you have a problem.

Businesses always moan about interest rates

And the economy clearly isnt doing as well as it has done.

That depends on hope you measure it. GDP does not take into account debt
so as Labour did (and will do again if given the chance) you can make it
appear that the economy is doing well by borrowing more and artificially
inflating GDP
just as farmers always complain about the weather.

The one financial institution which isn't restricting its lending
hand has been unaffected by any crisis has very high interest rates -
the credit card companies.

They are restricting their lending in some jurisdictions.
In this instance we are talking about the UK and I personally have seen
no evidence of any tightening of restrictions on lending.
--
bert