Icesave/Kaupthing - is Martin to blame?

31May2008

!!!!!! - Martin has become the story

maypole

PasturesNew wrote: »

I considered Ice based purely on Martin's site and what he wrote about them. I'd have never heard of them otherwise.

So, I read what he put. The lot. And I decided it wasn't for me.

I felt there was too much risk on a foreign bank honouring the first part - and the complexity that might bring if they didn't. I decided it was too much risk for me.

Martin's information, I felt, gave me enough information to make an intelligent and balanced decision based on facts.

I didn't save with them.

What a sensible post. Martin gives information, he doesn't give advice. It is up to us to read the info and decide for ourselves what to do.

Same with the forum, it is a place for discussion, not an advice line.

Good luck to everyone who has money tied up, I hope it won't be too long before you are able to withdraw it.

LucyTheDwarf

Caudle wrote: »

He is STILL recommending KE as his best buy though. Perhaps this needs a rethink?

We are all blissfully relying on the FSCS to pull us out of a hole if these foreign banks go belly up. The system has yet to be tested, although it looks as if it will be for Icesave.

You can be sure the UK government won't step in to save an Icelandic or other foreign bank.

KE (or more correctly, Kaupthing Singer & Friedlander) was, and still is, a UK bank. It still has the best rate out there, and a good rate guarantee. UK depositors are still protected up to £50,000. Therefore it is still the best buy.

And, Labour still want to be re-elected.

And I still think it's a bit rich blaming Martin.. he didn't force you onto the website and write the cheque for you. Too many people think they can come on here, and be TOLD what to do with their money. There are many very helpful people on here who offer brilliant advice to these people, but it's only ever advice, whether it's from Martin or anyone else. It's up to the individual to do their own research and realise what they are putting their money into. How many people blaming Martin read the full t&cs on their savings accounts? How many people here read the t&cs on any financial product they purchase?

earlgrey_3

posh*spice wrote: »

earlgrey I think it's important that this point is emphasized since too many on this particular board actively prevented others from hearing facts that have might have persuaded people to withdraw their money. They suppressed all debate.

The psychology of the posts back in April was interesting wasn't it? Many here were fanatically supporting the Icelandic banks as if they were football teams rather than banks and determined to ignore the problems. A interesting study in crowd behaviour. It's a terrible situation for everyone who did invest so hope it all comes good for them.

Jamie_A_G

31May2008 wrote: »

Yes and that information was helpful - but where was the warning that both banks were about to go t*ts up?

The severity of the crisis had already been indicated to financial markets by the price hike of their CDS insurance.

How about reading the papers, getting professional advice and not just relying on advice that is free?

itsnever2lateisit?

31May2008 wrote: »

Yes and that information was helpful - but where was the warning that both banks were about to go t*ts up?

The severity of the crisis had already been indicated to financial markets by the price hike of their CDS insurance.

NOBODY repeat NOBODY has any advanced warning that a Bank is about to fail, even the board have little notice. Take todays events, the fall of a banks shares in no way affects its balance sheet, however it shakes confidence.

Another example is HBOS, again the balance sheet may be healthy, but the speculation surrounding them caused the authorities to 'assist' them into the arms of Lloyds, rathe rthan wait to see if it could weather the storm. All an attempt to bring calm and restore confidence. (Sadly short lived)

I,_Brian

where was the warning that both banks were about to go t*ts up?

Is Martin expected to include clairvoyance in his general coverage?

Let's be fair, no one knew Landbanki was about to be nationalised today - except the Icelandic FSA.

And Martin has always and consistently made a point of reducing risks via diversification.

What more do you want? The Grand National Winner 2009?

oxocubes

I blame his parents.

Nick_C

Is Martin to blame for IceSave going into receivership? Obviously not. If anything, he may be to blame for keeping it in business for so long by recommending it as a best buy.

Lots of comments today about how no one has lost anything, and you are covered by the compensation scheme. However, it is now becoming apparent that the Icelandic Government may not be able to afford to pay out under the compensation scheme, and as I said in this forum last week, if its strapped for cash, who is it going to protect, its own people or foreign depositors?

With the collapse of the Icelandic Krone, these sterling deposits represent a crippling debt, and Iceland itself could go bankrupt.

Martin's articles explained the compensation scheme, but I doubt that many people realised that their first €20,000 was at risk. Many still don't.

See http://www.guardian.co.uk/money/2008/oct/07/savings.banks1

and http://www.guardian.co.uk/money/2008/oct/07/savings.banks1

and you will realise that people with less than £50K in Icesave could lose up to £15K of their savings.

Many people expressed doubts on this forum about the wisdom of depositing in foreign banks, particularly Icelandic ones, but were metaphorically stoned for heresy casting doubts on Martin's wisdom.

For all the warnings, a lot of people who use this site are financially naive, and have looked at the site as a source of advice they can trust.

jingle68

31May2008 wrote: »

Yes and that information was helpful - but where was the warning that both banks were about to go t*ts up?

The severity of the crisis had already been indicated to financial markets by the price hike of their CDS insurance.

can martin please let me know which bank will go t*ts up just after 7am tomorrow please so i can avoid it because ive got £50,001 to deposit ........i suppose Iceland is out?? oops its over the UK protected limit