Re: Banks taking advantage of us all. We should all do something about it!

ILW

But surely it would be more effective to just arrange for a proportion of depositors to all withdraw their saving for a few weeks. And a lot less risky.

JuicyJesus

ILW wrote: »

But surely it would be more effective to just arrange for a proportion of depositors to all withdraw their saving for a few weeks. And a lot less risky.

Once again, to spell this out as clearly as possible - there's a clearly definable point of the amount of money being withdrawn. Under this nobody cares - over this the bank collapses, and thankfully because most people will recognise this as an idiotic plan the amount withdrawn will always be a fair bit under that mark. I dare say it would probably be an insignificant blip if we're talking about one of the larger banks.

scott_lithgows

ILW wrote: »

But surely it would be more effective to just arrange for a proportion of depositors to all withdraw their saving for a few weeks. And a lot less risky.

I would check your house insurance before you put it under the bed for how much you are insured for !

gt94sss2

ILW wrote: »

Or to put it another way, savers with bank deposits could bring the whole economy to its knees if they got organised and chose to.
Quite a bargaining tool for higher rates to be paid I would have thought.

If savers want higher interest rates, all they need to do is be more proactive in moving their savings to institutions which offer higher savings rates - this would encourage other institutions to raise their rates to get/retain funds.

There is no need to come up with crazy ideas about causing a run on all banks etc..

Regards
Sunil

Malory

lr1277 wrote: »

I am not an expert but let me take some guesses as to what will happen.
The banks use your savings to lend money to people including in the form of overdrafts, loans and mortgages.
Let us say a good chunk of money was no longer available to the banks, as a commercial organisations, they would have to reduce the amount of lending.
Overdrafts, loans and mortgages would have to be repaid immediately.
Now there may be more savers than mortgage holders, but can you imagine the howls when people are told to repay they borrowings IMMEDIATELY!!!!

.

Not just mortgage holders. Small businesses depend on start-up loans, too. I agree, not thought through.

ILW

The more people say it is such a bad thing, the more it seems to show how much latent power savers actually have. On the whole they have been treated pretty badly lately with the only account offering guaranteed above inflation returns (NSandI) being withdrawn. Does make one think.

JuicyJesus

ILW wrote: »

The more people say it is such a bad thing, the more it seems to show how much latent power savers actually have. On the whole they have been treated pretty badly lately with the only account offering guaranteed above inflation returns (NSandI) being withdrawn. Does make one think.

Yes... latent power! That's exactly what everyone's saying!

*facepalm*