| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Safety of Post Office/Bank of Ireland savings | |
| Posted by: | Malcolm Peltu | |
| Date/Time: | 19/11/10 15:28:00 |
| I agree with Thomas that analogies with other countries are imprecise, to the say the least. My point was that if the analogy was good enough for Osborne when it suited him why not now (particularly when so many Keynesian-oriented economists have consistently pointed to the danger from too severe cutting back). Politicians similarly like to quote sources when they support their own views but not when the same source say something less supportive. That's why I think the latest OECD warnings about the dangers of government policy are signficant as the OECD was pointed to once as supporters of the coaliition policy. As I mentioned before, I think one of the forgotten aspects at present is that the Labour government's dealing with the crisis when it hit has been the basis for a shorter than predicted/fear recession followed by slow but steady growth. Of course it handed on a horrendously high debt, but it also handed on reasonably sound platform for economic growth policy which the coalition government can take advantage of. One of the tools used was to cut interest rates. Lord Young was correct to point to this as a means of easing the recession for some - but totally insensitively failed to highlight that this has been good for only some people, , particularly home owners. Savers have been severely hit, which particularly affects older people, who are also among those least adept at going online for savings and continuously jiggling savings accounts to get the best offers, which are typically time limited. The negative effects on savings also increases the pressures to get into more debt, which fuels the vicious cycle again. Given that inflation has been high, it also means that interest rates as one of the key levers of correction is now out of play. |