Icesave/Kaupthing - is Martin to blame?

MissMoneypenny

My son didn't put his money into Icesave because he read the very clear warning Martin always gave about the risk associated with using this bank. Martin's warning has helped my son.

I'm appalled that some of you are now blaming Martin, when he gave you such clear information.

ad44downey

posh*spice wrote: »

This is the type of ill informed rubbish that has been peddled on this board. This bank failed not because of 50 people on MSE took out their money but because it its leverage was too high, it was totaly reliant on the now redundant whole sale money markets. Furthermore, these banks cannot be saved as they are bigger than the country they exist in.

The doomsters sealed their own fate - don't make me laugh:rotfl:. My money is Northern Rock.

That's funny because Martin Lewis on C4 news earlier tonite said he had several million people on his email newsletter. So where did you pluck the 50 figure from?

It was very like Northern Rock in that once the run had started it was curtains for them. A few sensible heads on here urged restraint but sheep don't listen to reason unfortunately

miggyuz

I can understand why people are upset. If I thought I could lose my savings (however pitiful!!) I would be devestated. It is human nature that people turn to look at others to blame to make themselves feel better. If this website if where they heard of the savings scheme then it is an obvious target for blame. Many people are thinking that if they hadn't seen the scheme talked about here they never would have known about it.

It is very difficult to give financial advise to everyone, rather than on a one to one basis. Maybe we should all learn a lesson about giving and taking advice!

I really hope that no-one loses a penny - good luck guys!!! X

bookshifter

I think a whole generation of people have now realised that money is not safe anywhere, literally and in any status. I was too young to appreciate the collapse of BCCI but I believe that was a singular event, whereas in the current climate a number of banks have been or are in serious trouble all over the world.

10 years ago the 'ordinary joe' probably did not have money in bank accounts in foreign countries, they had it in a local bank and never really moved their money around for a better interest rate, now in the internet age when comparisons are much easier, if Lloyds is offering 1% more interest than say Barclays people will actually change accounts. So we now change banks more frequently but we still have lots to learn about the financial world!

I think in the future people will have to look more carefully at the best rates and see whether they are so out of kilter with the others. There are banks that are talking about interest rates til 2012 .......... that is a very long time isn't it? - The interest rate will be at least 0.30% (gross) higher than the Bank of England Official Rate until 1st February 2012 - from http://www.kaupthingedge.co.uk/our-products/high-interest-savings-account.aspx - can they wriggle out of such as promise?

Fingers crossed for everyone who is with IceSave

brit1234

Sorry but I thought it was common knowledge that the banks in the worst state had the highest interest rates. Thats why their interest rates were so high, all to get as much cash to save the bank.

Well that was then and those banks are collapsing. What matters now is people with savings move them to safer banks such as Lloyds, HSBC, Northern Rock, National Savings etc. Yes you will get a lower interest rate but you will have sound sleep unlike having cash in other institutions.

The simple fact is this guareentee system may not have enough cash if a large British bank goes down and if a second goes down that will wipe the fund out.

So don't think about short term greed by going for interest rates, go for security in these uncertain times.

weaver

Martin is not to blame

The objective of this site is to give information only. No one recomended you put money in Bank A or Bank B - Everyone was given the facts of current interest rates available.

I had money in Kauping edge as I felt it safer than Icesave - after reading all the information available on this site. I have withdrawn my money as I dont like the economic situation in Iceland at the moment, and if I have to claim compensation I would sooner do it through a UK bank.

The purpose of this site is to make people aware of the best deals around at the time - Nothing more.

No one on MSE is to blame if you have money in Icesave.Over the last couple of weeks you really should have been reading the news or sites like "this is money" to monitor the situation.

Would those now condeming this site be shouting if they had received good interest rates for the next couple of years - I dont think so

Money is hard earned and if you arnt prepared to monitor the situation then dont try and blame someone who dosnt advise but provides valuable information to those who want to listen.

Martin and MSE has done nothing wrong - the blame lies with the individual for not reading and listening to current news in this economic climate.

I am sorry people are having problems with Icesave but unfortunatly these are strange economic times and you need to be monitoring the news constantly. I lost money on B&B shares but I only have myself to blame. It was my choice to buy them and my choice not to sell when I really should have.
This has made me more cautious and learnt not to wait until the last minute to act.

Nick_C

bookshifter wrote: »

10 years ago the 'ordinary joe' probably did not have money in bank accounts in foreign countries, they had it in a local bank and never really moved their money around for a better interest rate, now in the internet age when comparisons are much easier, if Lloyds is offering 1% more interest than say Barclays people will actually change accounts. So we now change banks more frequently but we still have lots to learn about the financial world!

I remember at college in 1975, my Economics Lecturer talking about old ladies criss-crossing the High Street when interest rates changed. Savvy savers have been chasing that extra half a percent for decades, if not centuries.

But I agree that the younger generation are learning a few hard lessons about economic instability.

posh*spice

ad44downey wrote: »

That's funny because Martin Lewis on C4 news earlier tonite said he had several million people on his email newsletter. So where did you pluck the 50 figure from?

It was very like Northern Rock in that once the run had started it was curtains for them. A few sensible heads on here urged restraint but sheep don't listen to reason unfortunately

This bank didn't fail because MSEers pulled their money out of this bank (except they didn't:rolleyes:), it failed because it had high leverage (that means its borrowings were too great relative to its deposits), it could no longer get money from the now FROZEN whole sale money markets and it could not be bailed out as it was too big for the small country of Iceland to rescue. It wasn't sensible given the global credit crisis for anyone to leave money in a bank which was having difficulty in accessing money from money markets....

Nor did Northern rock fail because a few old people took out their depoisits. It failed because once the MONEY MARKETS failed the business model on which NR worked was defunct. It no longer worked. FULL STOP. Not because there was a run on it. It could no longer access money in the financial markets.

Where sheep come into I don't know. Unless it's the sheep who believe if they all huddle together on the deck of the Titanic that somehow that won't make the ship go down.....is that the band I hear...

The few "sensible" heads on this board as you put it just drowned out any information of any real value on this board.

ad44downey

posh*spice wrote: »

This bank didn't fail because MSEers pulled their money out of this bank (except they didn't:rolleyes:), it failed because it had high leverage (that means its borrowings were too great relative to its deposits), it could no longer get money from the now FROZEN whole sale money markets and it could not be bailed out as it was too big for the small country of Iceland to rescue. It wasn't sensible given the global credit crisis for anyone to leave money in a bank which was having difficulty in accessing money from money markets....

Nor did Northern rock fail because a few old people took out their depoisits. It failed because once the MONEY MARKETS failed the business model on which NR worked was defunct. It no longer worked. FULL STOP. Not because there was a run on it. It could no longer access money in the financial markets.

Where sheep come into I don't know. Unless it's the sheep who believe if they all huddle together on the deck of the Titanic that somehow that won't make the ship go down.....is that the band I hear...

The few "sensible" heads on this board as you put it just drowned out any information of any real value on this board.

There must have been about a hundred different posts on here with people panicing trying to get their money out. God knows how many other thousands were influenced by this. Panic feeds panic.


Ok fair play, you won this time

Doomsters/Sheep/Headless Chickens 1 Sensible People 0

You can't win them all I suppose

gazza975526570

ad44downey wrote: »

There must have been about a hundred different posts on here with people panicing trying to get their money out. God knows how many other thousands were influenced by this. Panic feeds panic.


Ok fair play, you won this time

Doomsters/Sheep/Headless Chickens 1 Sensible People 0

You can't win them all I suppose

I concur.

We are dragging ourselves into a much worse position by the amount of panic.