Question for those of you with savings in the bank(s)

[DimPrawn]

What are you going to do now that:

Interest rates are practically zero and are well below inflation

Quantative Easing means the printing presses are going to be issuing £10,000,000,000 notes soon and hence your savings aren't going to buy a cup of coffee


Are you going to shift your money to another currency, buy gold, buy property or what?

[lightng]

If you've got kids, invest in them (education etc) and be nice to them if not now then just before you go senile. Hopefully then you'll have someone to wipe the dribble from your mouth.

Thats my plan anyway.

[Incognito]

In the words of the great man himself, I'm being greedy when others are fearful. So, yes property and shares are what I'm putting my money into.

[milanbenes]

property

the more they print the higher it will go

good luck to those who hold cash

Milan.

[DiscoStu]

I'm putting mine into hookers before it's worthless.

[BrilloPad]

Savings? Oh yes - I remember that from before I got divorced.

Roll on inflation : make my debts go away.....

[foritisme]

What happens to all this extra money they print ?

Does it go to the banks for them to lend ?

[PM-Junkie]

What happens to all this extra money they print ?

Does it go to the banks for them to lend ?

That's the hope. With "hope" very much being the operative word....but the banks don't exactly have a good track record of playing ball over the last four months so who knows.

The interesting thing is what effect QE will actually have, because for the fist time the majority of countries will probably apply some degree of QE. Whatever politicians and economists may claim, the fact is that nobody really knows what will happen - it is entirely possible that it will have no net effect on the global economy, and then things will get really interesting. I'm not convinced that any currency will plummet in value solely because of QE, I think for reasons I have said before that the downward pressure is principally on the dollar and to a lesser degree the Euro. I suspect, in the 2-3 year time frame, sterling will do reasonably well.

Nervous times though, I agree. The fact is, nobody knows.

[pmeswani]

What are you going to do now that:

Interest rates are practically zero and are well below inflation

Quantative Easing means the printing presses are going to be issuing £10,000,000,000 notes soon and hence your savings aren't going to buy a cup of coffee


Are you going to shift your money to another currency, buy gold, buy property or what?

I let Andyw sort out my savings. He seems to be squandering it well.

[Doggy Styles]

Before they went lending the banks our money, why didn't the government tie them down with what they could do with it? e.g. no big bonuses, open up lending to businesses, don't lend higher than 3 or 4*salary for mortgages, carry out due diligence before buying debt assets, etc.