Really Stupid Question Time - If Banks Simply Cancelled All Their Debt...

Many thanks for that. Much to think on!!

Well! You know what I mean!

Yes, who ever was owed the money effectively donated the money to them when they handed out the original loan.

Economics is a social science.

Under the mattress?

Jokes like this are as rare as hen's teeth.

You're telling porkies again. You? A house? I thought you were still waiting for the time to be right (or rather the price).

You expect to get through 4 tubes of toothpaste each year? Good grief, I'm still on the one I started more than 15 years ago.

And only 400 bottles of beer per year? How modest.

Pah :) I was really meaning, in which institution would he errr stick it!

That only works with Isle of Wight chicken!!!

I managed to get to my private pension in time, and that's even in a slight profit over the bust. Undoubtedly they've lost rather a lot on my work pension though. In theory that's not my problem (modulo that the trustees want an increase in payments) since it's a defined benefit scheme, but obviously the angel of skepticism is sitting on my shoulder.

FoFP

'M Holmes' wrote this:

You're lucky! I reckon the private pension pot I have has fallen in value by about £100k since NewLab came into office. First the divvy grab in 1997, then the collapse in share prices/pension values, now the steady fall in annuity rates. By the time I take it, it might just about pay my energy bills!

The company we formed in 1976 was set up by a highly capable and successful international businessman who set up a company pension scheme on the basis that a pension scheme that was owned and notionally controlled by us (in the form of the company) was worth far more than any promises made by the state about the future value of the state pension scheme.

The company made him a multi millionaire, but he got skanked by the government and the pensions "Industry" - well and truly.

We were told that our pension investment was absolutely safe, conservatively run under rules instituted by the government and tightly controlled by the Inland Revenue.

Then came the Maxwell scandal and the rules were tightened up, but not in any way that would improve security for pension scheme members but only in ways that would tie schemes even more tightly to the soddin' "Financial services Industry".

Now any references to piss poor pension performance receives the rejoinder that "The government cannot be held responsible if you have made a bad investment", and they continue to raid the funds as they go down the toilet.

Over the last 10 years as funds and pension forecasts have gone down providers have continued to take their charges. I reckon I'm getting about one twentieth in real terms (and going down ! ) of what I was lead to expect when I was putting the money in. :-(

Derek