See how the Bank of England has clobbered savers

There is one place where the Bank of England have successfully engineered an interest rate cut - saving deposits.

Since the crisis, rates have fallen from around 5.5 percent to just a little over 2 percent. Banks have been able to reduce their funding costs from deposits by around 350 basis points. Since they haven't cut their lending rates, that rate reduction has gone into boosting bank profits.

There is a stark message for savers from this chart You are being made to pay for the bubble. Banks are covering up their losses from those huge defaulting mortgages by making savers pay through low interest rates on their deposits.

This is a crude redistribution income away from prudent savers to reckless speculators. Moreover, it was the unelected and undemocratic members of "independent" monetary policy committee of the Bank of England who arranged for this scandalous bailout.