tag:blogger.com,1999:blog-9031852996869768738.post1574649706935854183..comments2024-03-28T08:30:20.260+01:00Comments on The Ugley Vicar: The wrongs of loansAnonymoushttp://www.blogger.com/profile/03590979027426082714noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-9031852996869768738.post-79254392619372521112007-08-17T12:31:00.000+02:002007-08-17T12:31:00.000+02:00John you are only addressing one side of the equat...John you are only addressing one side of the equation. You suggest there is only one sensible alternative to borrowing and paying interest:<BR/><BR/>"If, on the other hand, they want to buy something that they don’t need, then they should wait and work until they can afford it."<BR/><BR/>But where should they keep these savings? If they do the apparently wise thing and put them in a savings account, surely they are also contributing to the problem. After all, the interest paid on the savings account comes through the savings institution lending funds to people who pay interest on those loans. That is the essence of the building society movement, which was founded originally for mutual benefit.<BR/><BR/>So where should someone keep their savings? Are we to advocate a return to the piggy bank on the mantlepiece, or is a paper bag under the mattress more appropriate? There is another side to the equation!<BR/><BR/>Tim Houghton,<BR/>DerbyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9031852996869768738.post-49794103843222805052007-08-10T13:19:00.000+02:002007-08-10T13:19:00.000+02:00I see the main problem as general consumer credit....I see the main problem as general consumer credit. Credit card rates are in excess of 10% above base rate and exch lender wants to sign you up for the maximum facility which would be viable if they were the only lender. They then make their profits on administration charges which bear no relationship to the costs involved. <BR/><BR/>The purchase of a home or a car with a loan can be a reasonable decision providing the cost is proportionate to income.<BR/><BR/>Similarly a young person may use a store card to prpare his wardrobe for his first job.<BR/><BR/>Is buy to let a bad thing? Rented accomodation is attractive to students and others who are likely to move for employment reasons.<BR/><BR/>The general rise in hose prices is a result of increasing wealth and population growth. This means that say people are prepared to spend 35% of income on housing rather than 25% a generation ago. <BR/><BR/>The present crisis is the ironic result of low interest rates which have been good for house buers and business but have little effect on lenders due to the large margins taken by banks.<BR/><BR/>More generally the problem is a result of the growing disparity of incomes in society.<BR/><BR/>The problem of poverty is a result of government policy. The minimum wage is low to provide cheap labour. Benefits levels are set around half of this to provide suitable motivation. Any benefit given are rapidly withdrawn if income increases thus providing little motivation for overtime or part time jobs. Their motto seems to be "The system nver fais only people fail". The rich have their reward and the poor are unseen.<BR/><BR/>David Hey<BR/>West YorkshireAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9031852996869768738.post-1502769751100913762007-08-09T10:52:00.000+02:002007-08-09T10:52:00.000+02:00Schluter certainly has and his alternative to limi...Schluter certainly has and his alternative to limited liability is really interesting.<BR/><BR/>I think I agree with you John, you look at the situation and can see how it could have been avoided. But how could we undo it now?<BR/><BR/>Obviously the buy to let system is distorting everything, yet many clergy do this as the only way to get on the 1st rung, as by the time they retire it may be impossible. We haven't yet done that but are thinking about it, but are not sure we can even afford that.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9031852996869768738.post-27612184681610887852007-08-06T11:44:00.000+02:002007-08-06T11:44:00.000+02:00Michael Schluter has certainly written some intere...Michael Schluter has certainly written some interesting stuff on a non-interest-based Christian economic view.Johnhttps://www.blogger.com/profile/02487495921222083129noreply@blogger.com