Re:Savers are slowly choking off the life of the world economy
by zeahfj on Monday December 19, 2016 @10:30AM
(#13211972)
That is it's intent but ironically it increased the amount of savings required to retire so ordinary people couldn't participate in the speculation but still have to pay tax to subsidise it. It's huge wealth transfer from ordinary people to the finance industry.
I thought interest rates were kept low to entice those having money to, rather than put it in the bank, invest it, that is: speculate. Problem seems to be that that's not what households did. In many countries, they paid back on their mortgages and put more money in the bank, despite the low interest rates. The science of psychological economics isn't that well developed, it seems.