Tuesday, July 26, 2011

the big eat the small


Reading the FT on Monday July 25th, 2011:

"some experts accuse European governments of talking tough on credit ratings but actually trying to minimise the pain of their big debt burdens by transferring some of it to savers. Government bonds yields in the UK are already negative when adjusted for inflation, and those of the US and Germany are barely positive.
It is absolutely disgraceful. It is a way of impoverishing insurance companies and pension funds, says Geoffrey Wood of London's Cass Business School bluntly. It is premeditated theft by governments from their citizens. "

Well, I have no sympathy for the big money institutions, because they now receive the same treatment as what they were given their savers: over here, the banks are giving an intrest rate on deposits that is lower then the inflation too. Which means that the savers are loosing money yearly, by giving their money to the banks. We, the savers, were already punished by the financial crash of 2008, and year after year we get punished again, while the bank bonusses for the bank staff start swinging again. Disgraceful is the word.
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