Bad morning in the markets

wymondham

neverdespairgirl wrote: »

Surely via pension funds etc an awful lot of people do have an interest in the FTSE?

very true. I think if you're near to drawing on your pension it's bad news, but if you're not then it's a good time to buy shares!

Realy

wymondham wrote: »

very true. I think if you're near to drawing on your pension it's bad news, but if you're not then it's a good time to buy shares!

Intresting thought, Is it a good time to buy a house also?

steadysaver

iolanthe07 wrote: »

deafening silence from horseinhat

He is probably in another high powered meeting

Treadmill

Pensions ? a large % of people in this country don't have any pension or investments... as for other investments, theres more debt around than savings.

Neillgb

Treadmill wrote: »

Pensions ? a large % of people in this country don't have any pension or investments... as for other investments, there's more debt around than savings.

Yes, but people who do have FTSE linked investments will have less cash.

Therefore they won't be able to buy as much as they would have.

They might have been considering giving business to you or your boss but choose not to because of the lack of cash.

You or your boss have less cash........and the circle is complete.

steadysaver

down 6% and no signs of stopping :eek:

WTF?_2

purch wrote: »

What ??

Guaranteeing Deposits might just save the Banks, and then won't cost the Government, and therefore the Tax Payers a single penny.

Waiting till after the Banks are failing and then trying to save them will cost the Government, and therefore the Tax Payers many pennies.

It's not a cost-free operation. Consider that the yields on government bonds are considerably lower than the yields on savings accounts.

Both would be guaranteed in the even of a savings guarantee.

Therefore, why would anyone with cash to invest in a given currency want to put it into government bonds when they can stick it into a bank instead and benefit from bank interest, with similar 100% guarantee?

In practice, it's going to force the governments to offer better returns on their bonds. ie. They end up paying more, probably a lot more, to borrow.

However, as you say better to prevent a domino effect run on banks rather than have to bail them out after the event.

kennyboy66_2

wymondham wrote: »

very true. I think if you're near to drawing on your pension it's bad news, but if you're not then it's a good time to buy shares!

If you're near to drawing your pension, then you shouldn't be that exposed to shares anyway. You should have most of your pension in cash, gilts & bonds.

GDB2222

Am I right that the limit is now £50k guaranteed on any UK bank, and probably going up to an unlimited guarantee by lunchtime? In that case, the smart move is to move any spare cash into the riskiest bank around that's paying a high (fixed) interest rate - certainly up to £50k. Any suggestions where to look?

Urgent to to do this, because rates will come down once the govt guarantees everything. (BTW, mostly invested here with NR at 6.5%, and NR have reduced the rate for new savings down to 2.5%.)

penguine

I think the £50k guarantee comes in tomorrow. However if we get an unlimited guarantee today it's irrelevant!