Wednesday, 29 September 2010
Mr Bean's Advice
On the left in the photograph is Mervyn King, governor of the Bank of England and to his right is Charles Bean, his cheery deputy.
Mr Bean is suggesting that 'older households', such as mine, could afford to suffer in this economic climate because we have benefited from previous property price rises. He assumes everyone moves house to make money rather than for location/ domestic reasons.
On Channel Four News on Monday night he said that savers had done well from higher rates in the past and we should 'not expect' to live off interest. I don't live off interest. My miniscule savings interest has fallen from more than 2.8% to 0.23% last month. The interest I received this last year didn't pay for a haircut.
Charles Bean assumes that all 'older households' will benefit from the higher house prices yet he really has no knowledge of house prices in Scotland. Prices have risen marginally in Edinburgh and Glasgow yet in rural areas have kept reasonably stable yet that doesn't mean if I sold my home I would have money to spend. Moving house is expensive and should I downsize to a 'pensioner home' I doubt if I would have any pocket money to add to the economy. I would make do with the personal effects I presently own so the only people who would profit from my relocation are estate agents and lawyers. Doesn't that say where Mr Bean's allegiance lies?
As for his attempt to persuade me to spent more - I intend to keep the wee bit I have to eat and pay to keep myself warm this winter and for a few winters to come.
Of course Mr Bean's salary would heat a mansion or two. He took a pay rise of 2.5% taking his salary to about £280,000. Enough said.