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How safe are cash savings in stockmarket crashes
Primrose
Posts: 10,707 Forumite
Yes, I know they're supposed to be safe but can somebody please explain to me what ripples caused by a severe stockmarket crash might affect banks to the extent that their indebtedness, (and any run on deposit accounts) might cause our savings to be vulnerable. Does anybody have any examples of what happened during the infamous 1930s New York stockmarket crash?
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Comments
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Have a look
HERE
or
HERE
Loads of other references if you Google. The FSCS, which is government backed, covers you up to about £32K per account, so unless you think the government is going to go bust your savings should be safer in the bank than under your bed.
If you do take the Armageddon view then it's probably a little late to buy quantities of gold but you should be OK with the other essentials like drinking water, tinned food and an AK47!
HTH!
Edited to add: THIS is quite a good one too.0 -
Well if it does get worse then rapid inflation will surely follow and even if the bank does not collapse your savings will be worth very little."A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0 -
It was 1929
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Well if it does get worse then rapid inflation will surely follow and even if the bank does not collapse your savings will be worth very little.
Ah, so take your savings out of the bank and buy whatever is rising fastest in price:TDo Money Saving sites make you buy more bargains - and spend more money?0 -
Ah, so take your savings out of the bank and buy whatever is rising fastest in price:T
Many people are like lemmings and try to follow the "smart" money. This is almost guaranteed to loose you money as you are always playing catch up. Go buy bonds or whatever if it helps you sleep at night. Personaly I think it is time to hold on to investments in equity - but I shan't be investing either
"A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0
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