Cycling UK Forum

axel_knutt wrote:......A consumer society is founded on status competition..................

Yes - that's part of the problem.

axel_knutt wrote:...................that's not the bankers fault...............

Oh c'mon - they're part of it and support it from all directions.

axel_knutt wrote:........................It is (or ought to be) common knowledge that compound interest means that borrowers will be poorer, and savers richer, over the long run.

........it's not working out that way for the savers at the moment, is it?

JohnW wrote:

axel_knutt wrote:......A consumer society is founded on status competition..................

Yes - that's part of the problem.

axel_knutt wrote:...................that's not the bankers fault...............

Oh c'mon - they're part of it and support it from all directions.
....

There are two aspects to that, a. what the system is and b. whether or not we agree with it. Our capitalist system requires that companies (incl. banks) work in the interests of their shareholders, and that is their only motive (interests of the customers are irrelevant, they are required to only to consider the interests of their shareholders).

Whether one agrees with that system is another matter - personally I don't but my agreement/disagreement is irrelevant because whatever my belief, companies and banks are still obliged to work only for the interests of their shareholders. And thus they will always be out to separate the customer from as much of the customers hard earned money as possible and that invariably means tricks and deception. Trick the customer into thinking they've got a good deal when they haven't, trick the customer into thinking banks are acting in customer interest so customers' guard is down and they'll agree to a bad deal much easier. It's the system this country operates under thus we should be aware of it and take appropriate safeguards (like reading contracts before signing). If we don't take such steps we cannot be surprised when it turns out companies/banks have been acting in the interests of their shareholders and not customers.

Ian

JohnW wrote:Oh c'mon - they're part of it and support it from all directions.

The whole of society supports it from all directions, not just the banks. The universal argument to trump all others is "it'll harm economic growth", even when we're already consuming enough to endanger the planet we need for a home.

JohnW wrote:........it's not working out that way for the savers at the moment, is it?

I think savers are better off with reduced interest rates than borrowers are with bankruptcy. Nevertheless I think bankruptcy should defer debt rather than writing it off.