Do you feel lucky?
At last count the interest earned on my savings was 18 pence. The government in their eagerness to do everything to make money cheap for business have now broken savings. Yet mortgage rates are rising in line with perceived risk. Neither are loans are cheap for the same reason. An email glows with my pre-acceptance of loans at rates of below 3%. Out of interest I go as far into the application until I get an actual real rate... 26%. Nobody wants to lend money. Not even the government. My savings are an issue. I want to put them into a deposit for a house, but the economy forecasts around 10-14% drop over the coming year. That wipes out my equity. Perhaps even leads me to the fun path of negative equity. So here I remain, and my savings wither in real terms. Did I say real terms? Banks are mulling negative rates. I would predict a run on the banks but can we even use cash any more? I suddenly realise we are headed towards a cliff. Why did the UK government drop the cost of buying a hous...