Thursday, 6 November 2008

What the Doctor Ordered?

Much to my relief, Barack Obama won the US election. The propect of Sarah Palin being anywhere near the levers of power has been at least deferred.

Today, the interest rate has been cut by 1.5% and it will be intriguing to see what effect that has on the UK economy. Politicians and the media seem to forget that this change means that any prudent souls who have built up a fund of savings will now lose a significant chunk of interest that they may well need to maintain their quality of life. Banks and Building Societies are desperate to attract funds apparently, and let us hope that they do not automatically reduce the rates paid to savers. Sometimes the powers that be need to incentivise the behaviour they wish to encourage in the population, and the spend, spend, spend mentality is largely responsible for getting us into the economic clag.

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