#1 - John Howarth 2009-03-01 11:46 - (Reply)

The Banks are paying depositors like myself approx 4.5% interest and loaning to businesses at around 12-13%. Why can't a Government guaranteed fund administered by a couple of business savy operators be set up into which retirees can safely deposit their money. This fund could pay 6-7% interest and reloan to selected businesses for only perhaps 1/2% over that to cover admin costs. The money being Govt guaranteed would be safe, retirees (who have had their incomes compromised) would earn more which they most likely would spend, and businesses would have some of their interest costs markedly reduced. As well, the Govt wouldn,t have to front up with a huge amount of capital to finance the type of fund which was discussed at the summit. Instead it would be financed by retirees diverting savings from the banks who are not playing the game anyway and who are profiting from excessive deposit/ business margins which ultimately end up as profit sent overseas whilst our businesses suffer.