?? Big bank collapse

ipri

hi....if this does happen as speculated...what could be the effects over here?...a good time to split large savings between banks?

ad44downey

We already had one - Bear Stearns. UK bank shares collapse even further. Savings probably safe

mr_magoo_5

You should have split after Northern Rock!
Lehman Brothers don't look too good
but then again none of the banks in the USA do!

Oblivion

ipri wrote: »

hi....if this does happen as speculated...what could be the effects over here?...a good time to split large savings between banks?

I prefer to spread my risk amongst the well established mutual building societies where decisions are made by sensible heads in the interests of their members, rather than in banks with only-just-qualified-from-university air heads trying to make a name for themselves.

Dave.

ad44downey

I forgot to say, house prices would go even lower. So it's not all bad news.

EdInvestor

Oblivion wrote: »

I prefer to spread my risk amongst the well established mutual building societies where decisions are made by sensible heads in the interests of their members, rather than in banks with only-just-qualified-from-university air heads trying to make a name for themselves.

I fear we will soon find that many of the BSs are in even worse shape than the banks.

tara747

EdInvestor wrote: »

I fear we will soon find that many of the BSs are in even worse shape than the banks.

Really EdInvestor? :eek:

I tend to think along the same lines as Oblivion, as the BSs have bigger deposit bases. I'd be interested to hear more. Thanks.

vbrindle

ad44downey wrote: »

I forgot to say, house prices would go even lower. So it's not all bad news.

It is bad news if you only just got your foot on the property ladder last year and are lumbered with a mortgage which is higher than the value of your house.:eek:

alchemistkevin

vbrindle wrote: »

It is bad news if you only just got your foot on the property ladder last year and are lumbered with a mortgage which is higher than the value of your house.:eek:

I would say don't worry too much, we have too many experts that predict everything and anything

Enjoy your new home and try and pay back the mortgage



P.S.: If they really were as knowledgeable as they come across they either would've sold some houses last year or would've shorted lots of bank shares and made lots of money either ways and wouldn't have time to post here as they'd be holidaying in the Bahamas

vbrindle

I think rising inflation will prevent prices crashing as hard as so many people predict.

For example a house may the same price as it was a year ago but is worth less because the pound is worth less. The mortgage would also be worth less.

We would all be paid more, be able to afford more and the prices of homes will start rising again.

I suppose like investing in anything you have to play the long game. I was laughing when I heard how much my parents paid for their previous houses.

neil324

vbrindle wrote: »

I think rising inflation will prevent prices crashing as hard as so many people predict.

For example a house may the same price as it was a year ago but is worth less because the pound is worth less. The mortgage would also be worth less.

We would all be paid more, be able to afford more and the prices of homes will start rising again.

I suppose like investing in anything you have to play the long game. I was laughing when I heard how much my parents paid for their previous houses.

Yes true, but only with wage inflation other wise you just get poorer.

The BOE have said if wage inflation takes hold they will hike rates big time.

There goes your theory.