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To Save or Not to Save

8 March 2012 No Comment

Guest Post: This is the question keeping many prudent thinkers awake at night and the truth is that people, that are still getting a good sleep at night, simply do not understand the economy and where it is heading, or they are too wealthy to be concerned. Not that saving is a bad thing; it’s just that when we are faced with a double-dip recession, which will bring lower interest rates and higher inflation, you need the solution to make your money perform above the recession average. This ensures that you will be financially safe in the future. Banks at the moment seem to be revelling in this fact, as the interest rates on savings accounts are at an all-time low, with some long term savings accounts offering lower than 4% interest! A few years ago this would’ve been unheard of and I’m sure you could remember a time, when your current account had a higher rate of interest attached to it.

Most people would agree that the banks were a major component of the initial recession and cause behind the world’s current economic climate, but that did not stop governments around the world, ours included, from offering them bailout packages so they could remain in business. These banks seem to seek to repay these loans by leaning on their customer base, they offer low interest rates and borrowing is at an all-time low Meanwhile they take your money and invest it in the financial markets and make huge profits that only the management and select bank employees seem to benefit from, with their exorbitant bonuses and other financial incentives. This outrages many people but there is little that can be done about it as the banks saviour – the government only promises to take action on the matter, until another crisis or scandal develops and people shift their attentions to it. Then it’s back to business as usual and the only people left suffering are the working and middle class people in our society.

From this, one can assume that during a recession it is truly a case of the ‘rich get richer, while the poor get poorer’, and often the rich (banks) will take money from the poor (working & middle classes), to risk it on investments, but only share the losses and never share the profits. This system, although not fair, is commonplace in our society; however it no longer has to be tolerated. There are now companies offering you the same leverage as the banks in terms of investing, as they allow you to invest in the same financial markets, where the banks make most of their profits in! The benefit with these companies is that you do not have to invest large sums of money; instead you can invest an amount that you are comfortable risking into a financial market of your choice. Companies such as Cantor Index allow you to speculate on markets in the short term, which will allow you to gain several good returns on investment over a day’s trading period.
The spread betting offers they provide are available to a wide range of clients and organizations and it does not matter, whether or not you have a finance background, as their professional staff will take you through the steps and will let you know if spread betting is the investment option you are looking for!

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