It's great!

The green /global crap from the government ends up just as white noise so its good news!

Don't you just love it when the green lot and their policies could send everyone under if they have their way.....no heathrow,everyone ride a bike,don't buy nasty carbon things,burn your car.

Just the sort of thing you need when the economy is going down the pan.

(anyway,it will all go back up again soon like it normally does....)

I don't think you get it mate, not only will he be unscathed he will prosper. Forget about 5% cpi and falling interest rates they are insignificant in the bigger picture (unless we see double digit inflation)

The cash is not there to be kept in a bank indefinately it is there to buy assets with. Assets that, if you believe that capitalism will survive will eventaully be worth more.

CPI and RPI make little difference (unless they sky rocket, and its actually predicted to fall next year) because each £ saved will buy MORE

1) Property

2) Equities

3) Commodities

so while everybody who was over leveraged sells these assets, those with cash buy them. Ones £ is actually worth MORE in this scenario not less (I'm not interested in the price of eggs or milk)

so its not just about coming out unscathed, but its coming out the other side in a far far better financial position then when you went in:)

So let me get this right , banks are going down the plughole/borrowing off the state just because joe blogs is taking his 20k savings out ..?

I do get it, but I want to see if Pete will ever back up one of his statements with some actual personal figures. This is the easiest time in the past 10 years to generate some real wealth and get ahead of the game if you know what you are doing, but I don't actually believe that Pete has such a strategy. No good predicting a house price crash if you do it 3 years too early and miss out on 100% growth so you can say you have benefited from a 12% fall. The point I am trying to make is that I can predict that there will be another Black Monday, another house price boom, rising inflation, falling inflation and another recession after all this levels out. This is useless if I can't work out with some accuracy when any of these events might happen, then chip on about how I said this would happen.......

Anyone ever heard of the great depression - caused by a collapsing stock/financial market ? wasnt so long ago..Led to the WW2
Anyone remember the oil crisis in 1973? Led to inflation and recession.

What we have today is a collapsing stock/financial market and add on top of that extremely high oil prices. Inflation is rising, international tensions are rising - will the history repeat itself ?

Do you really trust this bunch of rubbish to actually pay back all that money to depositors if it all collapsed? Can you honestly believe what they say?

Les

Love that fact that Europe has shown its unity.

When push comes to shove....its each to their own.Thank gawd we haven't got a European army.Everyone would be running off in different directions

I have no more than 35k in any one bank- unfortunately one of those is Icesave! :eek: ......

I have no more than 4 trillion in any one bank. One of those is Icesave as well :eek:


I take it that your plan didn't include Icesave going bust then?

Petem35.........you should still get your money, this is from the BBC news :D

"Under the depositor protection arrangements in Iceland and the UK, the Icelandic authorities will be liable for the first 20,887 euros (£16,300) of compensation.

The UK's FCSC will pay out the rest of the claims, up to the newly introduced ceiling of £50,000 per person."


Shaun

No savings at all ....just an 8K overdraft LOL

It was a risk I was willing to take. They were offering an excellent rate of interest. I've been fairly lucky so far as most of the shares I had I cashed in towards the end of '07 and closed accounts with NR, B&B and A&L in Feb so timed those ok - but unlucky with Icesave!

Could be a right pain reclaiming cash from Iceland's compensation scheme, then FCSC for the remainder, and no mention of how long it takes the get the money :(

Im inclined to agree with what Deep has been saying, il freely admit as a Biology teacher in a secondary school im a) not made of money, and b) not all that up with financial things but.....

Cash is cash, money doesnt actually 'go' anywhere during any of these periods of depression etc.... Im inclined to think the majority of this situation is caused by the press, and speculators/ experts.

If you hear that things are going up in price, your money is worth less, inflation etc... you cut down on your spending, this puts strains on businesses, people go out of business, share prices fall on companies as traders feel theyl be losing business so the sell off at lower prices to cut a potential loss.

The cycle goes on, but, at the end of the day, there was never any lack of money around in reality, it was all caused by confidence, or a lack therof.

Ive managed to save up (around) £10k in cash in a couple of banks in the last year, despite having a mortgage on a 2 bedroom flat that i pay off myself, and ive done it just by being frugal, i have no other loans to repay, i owe money to no1 apart from my mortgage company, and so now i have enough cash to buy out alot of my property. But perhaps my lack of loan interest repayment has gone someway to driving a bank under, again, the money still exists, its just in my hand, not being payed out to someone else.

I.E i wish the financial experts would stop spouting off and let capitalism get on with running itself

The process should take no more than 4 months, but FSCS are hoping to settle within 7 days of making a claim, so they will send you a claim form, you complete it and send it back and you could have the money within 7 days. Theoretically, the process can't really start until insolvency proceedings have started, but I think the FSCS will be under pressure to instill some confidence in the process by getting the claims out tonight or tomorrow


p.s. - This only covers amounts over roughly 16k (€20,000). You have to get the first 16K from the Icelandic govt, but given that they have annual GDP of 8 billion STG and a liability to cover 5 billion STG, the first 16k might not be readily available

The money is always somewhere, a healthy economy is when you get your money, you spend it on something with someone who then spends it on something else the government gets a tax in everyone of those transactions and the money is then put into the bank which can use your money as a leverage to give out loans.
Consumers are happy cause they got a product, business a happy because its got your money, government is happy because its got its tax and a bank is happy because it has your money to make them more money.

But in an unhealthy economy the cycle is broken. You get your salary and you are afraid to spend it on something because you are afraid you will need the money tomorrow - so the business does not get your money and goes bust, the government did not get its tax and raises taxation on other things that people always spend money on, like electricity fuel etc. Banks are going broke because they now have more liabilities than assets.

Its all much more complicated than this, but in a nutshell.. There is really no way out of this. What US did in its BailOut package is follow this theory and have taken the money from You by force and given it to the banks that need it to support their asset base, but it is doomed to fail because:

It is a vicious cycle, and as the government takes more money from you in taxes, you are spending less and less money on things.

As more people are spending less and less money, businesses are going out of business.

Banks are getting less money because noone has or wants to deposit their money with them. Banks are forced to raise interest rates and more and more people find themselves with high interest rates.

As credit rates raise more and more businesses go out of business, more people are out of the jobs and cant afford to pay high interest rates on their mortages, cars etc.

Its a cycle that cannot be broken once it has started.

Well, it WILL be broken at some stage. It just depends how long it takes to get there.

Steve

Well it will be broken of course, what i mean is that it cannot be broken in a positive way. I.e you cannot just give someone some money and everything will be fixed.

Timmyboywrx

You have saved ten grand in cash in the last year ..Blimey !!!

That would take me until 2020 to put that aside ....lucky git


Shaun

jesuz thank goodness for someone whose living in the real world -seraga


and its the likes of Timmy anyones got to feel some humilty toward

Not looking so good so far today...

Yup down another 5%

ouch, 353 points down for Ftse 100 and 380 down for 250 - that is quite mad.
That is 5 years of economic growth wiped out in a few months.

im actually very glad now that my gut feeling of not depositing into a stocks and shares ISA was a good move! as i think tid take me years to make back what i couldve lost in a few days

According to reuters we are talking in Trillions again about what has been wiped of world markets.

I love that word 'Trillions'.I never thought I would see it used so much.

Whose fault is this nonsense? Allowing all these economies to be built on peoples dreams?

Government....for sitting back and letting us 'feel good'?

Banks....for lavish lending to the wrong people on the wrong incomes?

People....For getting caught up in it thinking it would never go wrong?

Bottom line is,I reckon it has simply taken us back to where we were 10 years ago...so not so bad really.Just need to start all over again

Markets are exceptionally volatile, if you can equip yourself with a diverse investment vehicle then a killing can be made with good research and judgment.

Short of the market is the only place to be for the time being!

1. People are paying back the mortgage
2. Buy to lets are still viable. My friend has a £400 mortgage and gets £490 in rent. Thats viable.

It was mass unemployment that caused the depression, none of the above.

We are due for mass unemployment anyway, however they try to fiddle the figures as they do now.

I see that a good few councils deposited large sums with Icesave too. What a mistaka to maka!

Les :(

We'll agree to disagree. Falling stockmarkets cause unemployment just as unemployment can cause a stock market to fall. What came first, the chicken or the egg.

Many other people are saying that it wasnt either and that it had to do with deflation, bad government policy, Smoot-Hawley tariff etc.

The difference is the stock market rose SIX fold between 1921 and 1929 then fell 89% by 1932. There is nothing like that sort of swing today.