First News
Volume:7, Number:25
First News ad
First News completed 350 issues and seven years of publication on July 2. We thank our readers, contributors, patrons and well-wishers for their continued support
Business & Finance 5
THIS WEEK

Savers Are Slowly Choking Off the Life of the World Economy

Earlier this year the International Monetary Fund felt the need to add it all up and declared it a savings glut

It says institutional investors such as pension funds, insurance companies and mutual funds, along with the sovereign wealth funds of oil-rich nations and central banks, hold around USD100 trillion in assets under management. Mostly it is invested in stock markets and property or lent to companies and governments in the form of bonds. The unprecedented size of these savings might not matter if investors only wanted a modest return. Unfortunately investors are greedy and there are simply not enough things to invest in that can offer the high returns they demand. When investment banks demand between 10 percent and 15 percent returns and pension funds think we should be grateful they only want 6 percent to 9 percent, experts complain that the IMF is supporting a rip-off perpetrated by today’s savers on tomorrow’s taxpayers.

Share With:

House No. 10/22 (2nd floor), Iqbal Road, Mohammadpur, Dhaka-1207 Telephone: 88-02-9185124, 01712193344 E-mail: firstnews2010@gmail.com

© 2015 First News. All rights reserved