Is this not going the same way as the US?
No, this is not going the same way as the US. The problem in the US is two fold: a decade long policy of cheap credit, under Greenspan, and a Gov (and FED) policy of forcing banks to lend money to sub prime borrowers in a suicidal drive to promote home ownership.
If and when you see polish interest rates come down to, say, 2%, in a bid to "stimulate" the economy, u can bet ur house that serious trouble is lying ahead.
It is somehow much easier to buy something and then pay back your loan than save-save-save for ages and then find out that the item you were saving for is not longer available or its price has gone up...
That is because real life inflation is way higher than the official interest rates which means u r better off borrowing, buying now and repaying later.
Everybody feels and understands this even if they don't have a clue about economics.
That's the reason for the current borrowing binge.
Inflation is evil for it gratifies instantaneous spending and discourages people from saving.
The reason the banks want you to take loans is to spend money in your economy..if this fails to happen people will lose jobs..prices will rise then u come into a recession
You got it the other way around. Saving IS what makes an economy stronger because that means there are more savings that banks can lend to entrepreneurs which means more capital which means productivity gains, wage gains and overall wealth gains.
When there are no real savings to lend, banks create money out of thin air which ultimately leads to inflation and bankruptcies.
Germany's wirtschaftswunder is due to their high rate of savings. The UK and US's current misery is due to their borrowing and spending, and lack of savings.