Quote:
Originally Posted by nomadking
Investors have lost out, if only in lower rates of return.
It was faith in the investments business that is being protected. If nobody feels safe enough to invest, where will the money for mortgages, business and personal loans, and even Government debt, come from?
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Well for a start the money for mortgages, businesses and personal loans is created out of thin air for the most part thanks to the joys of fractional reserve banking.
http://www.positivemoney.org/ can assist with this concept.
Insolvent banks having their credit ratings propped up on the assumption that the state will bail them out isn't my idea of capitalism.
---------- Post added at 07:55 ---------- Previous post was at 07:53 ----------
Quote:
Originally Posted by Osem
Correct nothing's guaranteed but to imply that shareholders don't or haven't suffered and that they don't include virtually everyone who has a decent pension is patent nonsense. What real choice does an ordinary pensioner have in what his/her pension fund is invested in? It's all very well banging on about letting companies fail but let's not forget the collateral damage eh? How happy would you be if your partner's pension was decimated through no fault of her own?
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Pension funds have largely suffered due to government action, precisely the bailouts I mentioned.
When plentiful, basically free money is being thrown at financial institutions by the central bank they, surprise surprise, don't feel the need to attract investors by offering appropriate rates of return.
As mentioned my partner's pension has been decimated through no fault of her own. The scheme was changed just a few years ago and signed off as sustainable, however as we're all in it together the current government decided to use the surplus of that pension fund to subsidise others.
---------- Post added at 08:01 ---------- Previous post was at 07:55 ----------
Quote:
Originally Posted by Pierre
Decimated to private sector levels.
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Be awesome if her working hours were decimated to private sector levels rather than her current pattern of 7am -> 10pm during the week with another 12 or so hours of work done this weekend which is pretty much routine during term-time.
Her contributions to her pension are higher than standard private sector levels, stands to reason her annuity should be.
The government contribution goes some way towards offsetting the miserable salary for an extremely hard and fraught post-graduate job.
---------- Post added at 08:02 ---------- Previous post was at 08:01 ----------
Quote:
Originally Posted by Pierre
Absolutely, tell the public sector that...
But that's another debate.
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Will do, once the message hits the 'wealth creators' who've seen their wealth not only recover its fall in 2008-9 but continue to rise beyond that level while everyone else, both public and private sector, is worse off.
Guess where all that cheap, manufactured money the BoE have been pumping out has ended up?