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Seriously get all your cash out of the bank as soon as possible.
It's only a matter of time before a High St bank in the UK fails again and the government won't be able to bail it out.
I appreciate the combined net worth of the board is around 50p but once people realise that 97% of 'money' doesn't exist in a tangible paper form there will be a stampede to get cash out.
But there won't be any.
I Don't want to spread alarm or anything. :eek:
Interesting advice. What would you suggest we all do with our money once we take it out of the bank?
I think even in the currently unstable financial situation, a bank is more safe than under your mattress.
Perhaps the better advice would be diversify your assets to minimise the effect of one financial institution going under.
No problem for me, i spend it quicker than i earn it:eek:
Don't be silly. It's such herd mentality that only makes things worse.
Steady as she goes cap'n.
Until this all blew up I had absolutely NO idea that banks were doing such daft things as lending people more than 100% of the value of the property they were buying. How incredibly stupid and how cretinous to prey on the greed of people.
Well as a "professional" financial adviser my (just this once only :D) free advice is to stick it all with Northern Rock if your worried. What better than a government owned bank?
Yes how greedy of the government's bank(the bank of England)to lend so much money to the banking institutions, when they knew that the people they lent to, wouldn't be able to pay it back.Quote:
Originally Posted by Wheeze
http://www.telegraph.co.uk/money/mai...3/cnsls103.xml
stop panicking :confused::confused:
they have only borrowed 200billion
shittttttttttttttttttttttttttttttttttttttttttttttt ttttttttttttttttt:rolleyes:
I mentioned on 'The land of giants' thread that the fruit pastilles I buy from Tesco had gone up by about 13%. That was some months ago. Well in the past month they've gone from 45p to 85p in one jump.
Allan Greenspan was on the news last night saying he'd never seen anything like it in his lifetime(He's in his eighties now). We could see the collapse of the £, and if that happens it won't matter where you keep your money, because it won't be worth anything except as fuel for the fire.
i wish i had some cash to withdraw :(
Would any of the forum ladies like me to give them a large deposit??????....
You never know... some of the males might like one too?
fed up with the hole in the wall Allan?Quote:
Originally Posted by AllanT
I'm with you on that one Fleeter. I would be quite happy to see it crash, declare bancruptcy and watch civilisation as we know it crumble to the ground, where simple bartering takes over, using pebbles and favours. ;)Quote:
Originally Posted by Fleeter
I've got some great pebbles...;).
You have nothing to worry about unless you have more than 25k in the bank.The government will refund up to that amount if bank goes to the wall.Anyone with more than that is advised to open other accounts with a different bank...however be aware that many banks are part of the same group.
This flooding of the market with borrowed money has been looked upon as great for the economy,hence Labours so called strong economy(falsely perceived strong economy) over the past 10 years.However it comes to a point where banks need the money back.This irresponsible lending is the not to different to what Robert Mugabe has done in Zimbabwe.He has flooded the market with money and people pay for loaves of bread with wheelbarrow's of the stuff.The currency has become worthless,inflation runs at 100,000's of %.Just look at the state of our currency recently vs the euro and dollar.It would be a hell of alot worse if the U.S and Europe weren't doing the same on a smaller scale....hold onto your hats everyone it's only going to get worse !
Get yer pebbles out Marg. You owe me a favour or two...
It's £35k actually, although it's probably a moot point for many of us :rolleyes:.Quote:
Originally Posted by Rodders rambler
As ever, the media loves to sensationalize everything and put the willies up the general public...sells more papers.
I'll admit I cribbed this from an editorial but I think it sums up the situation...The fall of some banks and institutions is not Capitalism in crisis but Capitalism in action. Lehmans was allowed to fall because it had been avaricious and arrogant. Merril Lynch was saved because it had been more prudent. These are savage times but they will flush out the rotten and the strong will survive. At the end of it, us poor punters should have a more realistic situation to deal with.
wa hayyyy, at last, the downfall of capitalism and back to pigs and pebbles and fenceposts
And who are you classing as strong ????Quote:
Originally Posted by Wheeze
Not quite sure what your classing as a realistic situation wheeze??
And put some in mine.......sort code 999 911 acount number 242880859. Thanks.Quote:
Originally Posted by The General
Thanks Ady;):eek:.
Correct,sorry i have fat fingers ! :DQuote:
It's £35k actually, although it's probably a moot point for many of us .
The government tell us that no bank will ever go under in the Uk ....however will not raise the guarenteed figure (35k) ....go figure that one out !! :rolleyes:
I mean prudent financial institutions doing business in a more sustainable fashion. The massive trade in debt was a dumb idea and has been proved to be so.Quote:
Originally Posted by daz h
I cant quite get my head around everything that is happening in the financial world. It seems there is contrary advice saying its bad to have money invested/saved and an opposite view that its folly to be borrowing money.
If there is an easy answer can someone tell me if now is a good time or not to borrow money. I dont owe anyone a penny at present but want to make some significant changes to my business which would mean an approx borrow of about £100K - is there any reason why I shouldnt do this? The loan is agreed in principle at favourable rates with the bank and all indications are that the loan is sustainable and sensible from an accounting point of view.
But all this malarky is just making me question the judgement.....:eek:
Any "Dear Deidre" advice gratefully recieved....:)
It'll be like a return to the old days where a much more searching process will be required before you will get a loan. But if you have a well thought out and sound business plan there's no reason why you should not get a loan...after all, they have to keep business going just as you do. Good luck.
The loan has been approved thankfully, its just my nervousness of the current situation that is stopping me signing the little piece of paper. No idea why I am nervous, its just my lack of understanding the consequences of what is happening around the World and how that might impact on me (and logically) the business.
If all fails I will do what I usually do and a toss a coin....:o
Well, there's no real way of knowing which way the herd will rush. But at a local level, people will look for good value, excellent service and top quality goods at competitive prices. So businesses which have been well set up, stripped out all unnecessary costs and throroughly understand their market are likely to do well as less sussed competitors fall by the wayside.
If any of the banks go under there is only so much money the regulators will cover.Since this has to be divided amongst everyone who loses money, the likelihood is you'll get nothing.Quote:
Originally Posted by nobbut a lad
Halifax, Lloyds whatever the banks called. Mine (Natwest) locked my account this week even though it has a good chunck of money in and I was paid on Monday as well. Simple explanation- Swapping over software removed me from the system and locked the account. Therefore meaning I had no money to access. Therefore meaning three days later I am still unable to access my own money. Its saved us a small fortune not being able to spend it but had to borrow £20 of my parents to fill the car!!! Hopefully the bank wil get it sorted tonight and I can get some money. I hope so anyway or else I will be having my school lunch tomorrow in the tick.
LFT Alan Greenspan(former federal reserve chairman)was interviewed by the Telegraph Approx 2 years ago.(Report is on the internet)Quote:
Originally Posted by Littlefatwelshman
He stated that interest rates may have to rise into double figures in the UK to stem inflation. Since then things have got worse and he recently said something like, he's never seen anything quite like it. So if you invest beware of what's to come.
The cause of the problems was initiated by the Labour government(hardly a capitalist supporter) in the late 1990s. It was able due to the growth in certain industries to create money and spend it. It also taxed us more, created more regulation and therefore expanded the public sector.
Whilst all this was going on the bank of England kept interest rates low. This encouraged borrowing and discouraged saving. The future of a country-it's stock seed and investment, is dependent on savings and these were being siphoned off by the aforementioned interest rates and government borrowing.
So huge sums of money were being pumped from the Bank of England into banking institutions at low interest rates and this caused a huge speculative boom. Banks had at their disposal almost limitless amounts of cash that they were inclined to lend. They then created all sorts of exotic loans etc that hardly anybody understood.
All this extra money flooded the market causing house prices to spiral. Suddenly though the Bank of England realised that savings were very low and prices were going up. So they raised interest rates. This caused people to default on loans etc. When the banks realised that loans had been made recklessly they stopped lending to one another. But you see they had to,because they were running out of money due to a lack of savings and also because the Bank of England had stopped the cash flow(which they had to).
So the ultimate fault lies with the government and not capitalism. If the pound was tied to gold and not Gordon Brown's whim, he couldn't have created paper reserves, and this in turn would have created more cautious lending by the banks.
So there you are and there you have it.
Spot on summary as I understand it CL. Frankly, I think we would have ended up here whatever government was in power. Its evolution of economic theory. Sometimes, the theory turns out bad. Hopefully, the economists will have learnt a thing or two. My hope is that our 'nation of shopkeepers' is not harmed by all this.
RR - just get some out of Ady's account like Margarine did;).
It only takes incoming deposits :)Quote:
Originally Posted by Grouse
It's not a spot on summary at all as it doesn't (I'll just have another look) it doesn't mention sub prime loans, the rise of China, the development of investment banking or all the other crepe meshed together in the mind boggling matrix that is globalised banking. How can Gordon Brown be responsible for the international balls up that's going down right now? How can anyone think this is due to mere domestic policy?Quote:
Originally Posted by Wheeze
As a side issue: the Labour rebels who are demanding a leadership election because there's a 20% slide in their party's popularity need to grow up. Do they think that David Milliband is going to pull us out of this before the next election? Or Ed Balls? I don't think so! Or how about David Cameron? Would the great Thatcher be able to do something about it by cutting off benefits and closing some more manufacturing down.... Perhaps!
No only joking:D
Somebody else used the word "steady". A bit of patience and maybe not having it all and now for a while is what we need.
We're gonna get it that's for sure.
Wheeze if the pound was tied legally to a certain amount of gold which the government was forbidden to interfere with, then they couldn't borrow money.Quote:
Originally Posted by Wheeze
They could still tax us, but as income tax is reduced during difficult times the government would be forced through necessity to lower taxes I.e. cut the funding for the welfare state.
What's happening today didn't have to happen, but it did in relation to the type of government and opposition parties we have in this country.
Going off at a tangent (as usual) I think the Gordon Brown problem would be best dealt with in the way that the ancient democratic Athenians used to do it; they annually held voting, by scribbling on pot shards (called ostraka), if they felt that a politician had got too big for his boots (or in Gordon's case too boring and dull) - so long as sufficient votes were made the "winner" would be ostracised and forced to go abroad for 10 years :D. I think Gordon just might win this vote by a landslide.
Exactly - it didn't have to happen.Quote:
Originally Posted by christopher leigh
I strongly believe in the free market, but I think that some of these people in Government, Bank of England, FSA, The City etc have behaved extremely irresponsibly with our money - whether our money is our savings or our taxes.
I mean, spread betting by financial insitutions - madness.
The calibre generally of people at the top in these institutions has gone down immensely in the last 20 years since Maggie went. The old style politicians, love them or loath them - at least you new what they stood for.
Most of them now are not fit to run a Whelk Stall.
How can you trust Govt that has a minister like Mandy that cons us, resigns, comes back all forgiven, cons us, resigns, then ends up on double the salary in charge effectively of all the EU trade.
I think there is more pain to come yet - and looking at the polls now - we have to hope that Cameron has more about him than we have seen so far.
Labour are stuffed - perhaps permanantly now - and for those that think it is not their fault - they sold the gold at a knock down price - robbed the best funded private pension funds in the world - spent the money on New Deal which would have been cheaper giving all the New Dealers £20K in the hand!
Taxed us to the hilt and frittered it all away.
Need I go on?
They should certainly be in a better position to deal with this than they are - and Blair should really cop for a lot of this as it was created under his leadership.
We're going to Hell in a handcart:eek:
Can we send him to Helmand Province on the front line do you think?Quote:
Originally Posted by Stolly
I meant Sub Prime and other credit instruments I.e. 'investment banking...' when I mentioned exotic loans. China is irrelevant to the economic problems in the world, because we have very little manufacturing base in Britain and the goods demanded have to be produced somewhere.Quote:
Originally Posted by Guick Dotto
Tony Blair and Gordon Brown are responsible for the crisis in this country. Just like Mr Bush is responsible for the woes of America. Blair and Brown took us into a war in which we had nothing to gain, and which they have borrowed heavily to fund.
They've also given away billions in foreign aid to primitive cavemen(money we desperately need now) and increased the political correctness nonsense we're bombarded with every day.
If any one wants to assess the nature of the labour party, go back approx 10 years. To the time when greengrocers were having their property confiscated for selling in pounds and ounces. Did the labour party step in and stop it........of course not, they sent their lackeys over to implement it.
The politicians in this country are useless. The best is the chap in charge of the UKIP. Even then I don't agree with his position on most things.
P.S This post is dedicated to all greengrocers who had their scales confiscated.