Stop Saving just SPEND SPEND SPEND!!

[Bulletguy]

After being preached to for years that we don't save enough, the Deputy Governor of the Bank of England who enjoys a salary of over £250k pa, now says we must go out and spend spend spend!! *-)

 

http://www.thisismoney.co.uk/news/article.html?in_article_id=515595&in_page_id=2&expand=true

 

Is this country and its Banking system being run by a motley collection of escapees from lunatic asylums......or am I missing something?

[Guest Tracker]

Mr Bean is an unfortunate name but I guess a publicly funded £250k salary with bonuses and probably a bloody great fat pension kinda makes up for it?

 

I don't see how spending on imported goods which is where most of it will go can help our own manufacturing base and it is that which needs help?

 

Take the car scrappage scheme - Hyundai and Kia had to increase their output with extra shifts in KOREA to keep up with the UK demand so unless you worked at a UK Hyundai or Kia dealer for a year how did the money, £400,000,000 was it?, help the UK economy and jobs?

 

 

[BGD]

In terms of macro-economics the guy is right on the nail...

 

 

 

In economics, expectations are self-fulfilling.

 

Boom is fuelled by enough people thinking that good times are ahead to spend a larger proportion of their incomes; bust happens when enough people believe bad times are ahead to hunker down and save rather than spending.

 

What the guy is trying to do is affect consumers future expectations: by talking up the future; to encourage a critical mass of consumers to alter their spend/save behavious by enough to make that demand-led GDP growth happen.

Whether he's right will depend upon whether enough people and businesses take the bait that he and others are laying, and thus spend proportionaly more in the weeks/months ahead.......

 

[Bulletguy]

BGD - 2010-09-28 1:20 PM

 

Boom is fuelled by enough people thinking that good times are ahead to spend a larger proportion of their incomes; bust happens when enough people believe bad times are ahead to hunker down and save rather than spending.

 

What the guy is trying to do is affect consumers future expectations: by talking up the future;.......

 

Hmmmm.....I wonder where i've heard all this before?

 

Your definitions of boom and bust are quite different to mine! I see so called 'boom' when Banks begin bombarding the naive and foolish with endless streams of credit cards and finance they cannot ever hope to repay. Bust I see as when the 'money lenders' (Banks etc) call in those loans, stop credit, and it finally dawns on people up to their eyeballs in it. Hence the reason we are now seeing a glut of expensive vehicles stuck on the side of the road with For Sale signs in the windscreen, and properties up for sale in areas where you would previously have had to go on a waiting list to even stand a chance of getting a property there.

 

I don't know about 'talking up the future', but if everyone was daft enough to follow this clowns advice, just who will support them when their money has run out? The State? Because one things for sure.....the Banks won't want to know once the money has gone.

 

 

[Syd]

It is NOT easy but I do not contribute to any UK financial institutes obscene bonuses at all.

If a bank told me to spend spend spend then I would know that it was simply for their benefit not for mine and I would NOT do it

[Guest peter]

BGD - 2010-09-28 1:20 PM

 

In terms of macro-economics the guy is right on the nail...

 

 

 

In economics, expectations are self-fulfilling.

 

Boom is fuelled by enough people thinking that good times are ahead to spend a larger proportion of their incomes; bust happens when enough people believe bad times are ahead to hunker down and save rather than spending.

 

What the guy is trying to do is affect consumers future expectations: by talking up the future; to encourage a critical mass of consumers to alter their spend/save behavious by enough to make that demand-led GDP growth happen.

Whether he's right will depend upon whether enough people and businesses take the bait that he and others are laying, and thus spend proportionaly more in the weeks/months ahead.......

So in other words he's trying to con us old farts out of our life savings. He knows the s**t has hit the fan and is making out everything is just fine. I know where my money is staying and don't need any advice to the contrary thank you very much.

[Porky]

Like it or not we are a consumer driven economy based on the premis that competition drives down purchase costs. It is therefore inevitable that companies will move production to the lowest unit cost country and that the whole systems lifeblood is the people who buy. No purchases, no profit (fat or otherwise) = no employment. So in that respect he is right isn't he?*-)*-)