24 July 2013

The kids are alright

I just hope that you youngsters out there appreciate my beneficence.  Citywire reports:
A line has been drawn among consumers, with borrowers on one side and savers on the other.For the savers the news is perpetually bad and this morning’s announcement that even trusted old Premium Bonds will suffer an interest rate cut shows that the savings environment is getting worse.
On the other side you have borrowers who are benefiting from low mortgage rates and will be given another boost as the government announces more details of its Help to Buy scheme, the second tranche of which will provide mortgage guarantees for first-time buyers.
The divide between savers and borrowers can also be seen as a divide between generations; young versus old.
The older generations tend to be savers, who have paid off their mortgage and may be using their savings to top up their pension, while younger people are more likely to be borrowers, struggling on to the property ladder.
And so, we wrinklies are subsidising the kids.  An occasional thank you would be nice ...

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