Isn’t logic lovely?

Let me deal with the self-interest issue first. Mr Fisher is described as the founder and executive chairman of Fisher Investments and chairman and director of Fisher Investments Europe. I have seen their adverts. They are targetted at the reasonably wealthy soon to be retired person whose portfolio Fishers wish to manage. So Mr Fisher has an alignment of interest with a particular group who want high-interest rates to keep them in retirement and to increase the value of their annuities.

This is the group who have already done best out of the recessionary environment of the last decade.

So, err, they’re arguing for higher interest rates and higher annuity rates because they’ve done so well out of low interest rates and low annuity rates?

First, Mr Fisher’s facts are wrong. Bank margins on lending – which is what motivates them – have not fallen as a percentage or in value terms over the QE period.

Yes, they have. It’s a standard that falling rates compress bank margins. Why? Because a large part of the deposit base doesn’t receive interest. That float of the money passing through our accounts. A fall in lending rates when your cost base is 0% does compress margins.

This is simple well known stuff. But Snippa seems entirely unaware of it. Even though I’m sure I recall him complaining about this at some point in the past.

I won’t be seeking Mr Fisher’s advice any time soon.

And who else should we be ignoring?

11 comments on “Isn’t logic lovely?

  1. If people saving up for retirement have done so well during the last decade, what is his explanation for the closure of so many defined benefit pension schemes and the deficits reported on most of the ones that still exist?

  2. I think I saw a picture of a squirrel working a camera (in fact I know I did)

    https://www.dailymail.co.uk/news/article-7551305/Squirrel-snapper-shots-pigeon-models-equipment-left-London-park.html

    Any chance it can take over the running of Tax Research UK. It would surely know more about Banking than the great potato.

    ‘Bank margins on lending – which is what motivates them – have not fallen as a percentage or in value terms over the QE period.’

    I don’t even know a first day intern in any bank who would make that statement (unless they’ve spent the last decade in a hermetically sealed bubble) – it’s a level of ignorance so deep and profound, one wonders how the author actually manages to switch on his computer – just incredible.

  3. Tim

    Apparently The Beeching Axe led to Brexit, more than a decadebefore we went into Europe and 5 prior to the Referendum. Has to be read to be believed, especially the comments….

  4. Impoverished 61 year old who can’t afford to retire says that nobody else should be allowed to either.

  5. Spud opines……..”part of my research on country-by-country reporting”

    Someone who isn’t blocked should ask him…..

    “i note your claim that you “created the entirely new accounting concept of Country-by-Country reporting” which is interesting as the UN appointed Group of Experts on International Standards of Accounting (GEISAR) issued recommendations which contained the requirement for multinationals to publish country by country reporting and the International Accounting Standards Committee (IASC) presented a draft accounting standard (IAS 14) which suggested reporting by geographic area. GEISAR’s report was made in 1977 and the IASC’s draft was issued in 1980. Were you involved in both of these?”

  6. “And who else should we be ignoring?”

    A very interesting discussion on Money Box Live this afternoon on “green” pension planning.
    “So, what’s the return on Green Bonds?”
    “There’s no return, it’s just you spending money.”

  7. @Andrew C
    Many have tried, apparently it’s not the same thing or you’re an uninformed troll for even suggesting it and anyway all existing accounting standards are rubbish and they should just follow his advice and rewrite them all

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