Whats with all the bank panic madness?

Paul_Herring

esbo wrote: »

I don't know why people bother posting stuff nobody can understand.

I don't know why people say "I don't understand X" instead of using Google, asking what X means, or if they can't be bothered doing either of those, posting a message saying

"I don't know what X means" I'll denigrate people saying X instead

Oh - you did. :rolleyes:

And since other have replied about it, I find your claim 'nobody can understand' a little specious.

LongTermLurker

Paul_Herring wrote: »

"I don't know what X means" I'll denigrate people saying X instead

What's denigrate mean? :rolleyes:

isofa

Sapphire wrote: »

Do you know this for a fact, or is it just a personal opinion?

Personally, I would rather not risk having all my savings in one place – especially if it is one of the big banks. Obviously, as I stated above, from my own observations other people feel the same.

You, of course, are also free to express your opinion – but surely it is just that, not some deep insight into the financial world. :cool:

Why not research the organisations, and draw a conclusion? Do you know how large and how much coverage LTSB and HSBC have? These are truly enormous companies, with massive funds of deposits, they handle personal accounts as well as other financial flows and are not to be confused with companies such as Lehman and Barings, who were investment banks.

They are easily two of the safest places for your money, not that everywhere else is massively unsafe. I've got accounts with various companies, not because of the 35K protection, but because I choose different accounts for different purposes.

Do you know what the implications would be if one of these aforementioned banks (or other massive institutions) were in serious trouble or actually folded? Well here's my take on it, and this is a considered opinion....

If LTSB or any of the massive giants collapse (which they will not - this is almost as certain as the sun rising in the morning), do you really think your 35K will be paid out by FSCS? Where will they find all that money?

Think how many billions are held by these organisations, if they go under, (and just to reiterate for the hard of hearing - they won't ), money will be the last thing to worry about. Rioting, looting and a total breakdown of law and order and society would be top of my concerns.

Almost immediately everyone in the UK will be queuing to withdraw money from every bank in the land, can you imagine what knock on effect that will have on the economy in general?

So I'd say basing this on an intelligent risk assessment, I'm happy saving with some of the big and smaller names.

maryotuam

I think this underlines the need for a good grounding in finances, economics and consumer knowledge to be taught in secondary schools to all kids. We would be less likely to be in this mess if we weren't so clueless and naive. Education should prepare us for real life and the goverment should ensure the curriculum serves our needs not the needs of big business by keeping us uninformed.

Just imagine if the great majority of consumers knew all the tricks that sales people use and had a greater idea of how the economy should be run.

Now if Gordon came up with a plan to give young people the skills of good financial managment I might be impressed!

lotto-dreamer

maryotuam wrote: »

Education should prepare us for real life and the goverment should ensure the curriculum serves our needs not the needs of big business ......

Yes, but 'big' business pays 'big' taxes....whose side do you think the government is on

If we're all too sharp that could cause problems.

Jonbvn

Paul_Herring wrote: »

I don't know why people say "I don't understand X" instead of using Google, asking what X means, or if they can't be bothered doing either of those, posting a message saying

I did google DMGT but noting obvious came up. Therefore, it is safe to assume that I don't write for the Daily Diana (or is that the other rswipe rag?)

Anyway, I'm just back from the pub to continue fretting about failing banks.

We're all doomed.

Jonbvn

isofa wrote: »

Think how many billions are held by these organisations, if they go under, (and just to reiterate for the hard of hearing - they won't ), money will be the last thing to worry about. Rioting, looting and a total breakdown of law and order and society would be top of my concerns.

HSBC had $1k+ billion assets in 2004. Bigger than the latest US non-bailout.
http://www.gfmag.com/2004/Oct/c_ci/fe_art01.php

If they went under, then cash will only be of use to start fires or thermal insulation.;)

TRUSt_NO_1_2

a7man wrote: »

I come on here and read endless threads about fear of banks collapsing and spreading £35k into numerous accounts, its hilarious. Especially when people worry about their accounts with the 4 biggest banks in the country...relax people...

When you put money in a bank,you become a creditor.
The same as any limited company that you may give money up front to,who can,if they run into financial difficulty,'walk away' with your money safely deposited in an off shore account or spent on a villa in Marbella.
There is insurance upto £35k,which, for the vast majority of people, is more than enough.

People should be less worried about that possibility and more worried about the loss of purchasing power of what ever money or future income they have.

At 'the click of a mouse' ,subject to approval,the US banking system will create $700,000,000,000.
But what value do you put on a mouse click ?
Maybe a few mouse clicks ?

No 'true' wealth has been created.
It's a joke...virtual money!!!!!!!!
They don't even have to buy the paper like they did in 1929.
It gets closer to Zimbabwe each day (1,000,000 % inflation)
Google the Weimar to see what happened with hyper inflation in Germany.

£2 for a loaf of bread in 2010.It will happen.
Lot's of other 5H1T as a result.(mass unemployment in UK being one of them)

LongTermLurker

Jonbvn wrote: »

I did google DMGT but noting obvious came up.

http://www.google.co.uk/search?q=dmgt&sourceid=navclient-ff&ie=UTF-8&rlz=1B3GGGL_enGB236GB236

Links 1, 2, 3, 6 and 9 all point to their website???

Jonbvn

LongTermLurker wrote: »

http://www.google.co.uk/search?q=dmgt&sourceid=navclient-ff&ie=UTF-8&rlz=1B3GGGL_enGB236GB236

Links 1, 2, 3, 6 and 9 all point to their website???

I work for a non-company, and get somewhat different results, since their servers are located outside the UK. Issue closed.