From The BBC:
Years of saving would be needed to return household wealth to pre-recession levels, a report by the Bank of England suggests.If households saved 10% of their income, it would take nine years to bring wealth back up to the average of the last 20 years. The Bank’s quarterly review reported that householders’ decisions on saving could affect the economic outlook. However, history provides no “clear guide” as to how they will react. “It is difficult to assess how much, if at all, households might seek to rebuild their wealth,” the report said. Saving habitThe largely theoretical report found that the ratio of household saving to spending fell between 1995 and 2007 to historical low levels.
Falling interest rates, easy access to credit, rising asset prices – such as property values – and economic stability meant people were more tempted to spend than save. But the financial upheaval of recent times has reversed many of these trends, as well as making people’s jobs less secure. There might…
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