Preparedness for when

Living_proof

My daughter used to come round for a chat, open fridge and cupboard doors, bemoaning the fact that 'there is never anything to eat in this house'. In fact there would be months and months of food in some form or other, just no ready-to-eat junk food. The nearest to that would be fruit or an oatcake!

Frugalsod

jk0 wrote: »

Unless of course your country is also bankrupt. Then the protection is lowered by considerably more:

http://www.zerohedge.com/news/2015-07-03/greek-banks-considering-30-haircut-deposits-over-%E2%82%AC8000-ft-reports

Sh*t a brick!

The interesting thing is that the median level of UK savings is remarkably low. Last time I saw figures for it, the level was something like £150. So for many people even €8000 or even £8000 is well above many peoples level of savings. Also €8000 would seriously impact businesses.

Frugalsod

thriftwizard wrote: »

I think the worst thing, long-term, about so-called "haircuts" is that it undermines trust in the banks. If people suddenly do realise that their money isn't safe in the bank - not that it ever has been! - what will that do to the whole basis of our economy?

I've mentioned the possibility to one or two members of my extended family lately, as we're dealing with winding up an estate. (At some stages there'll be a fair amount of money in the bank, though it won't seem very much when it's distributed amongst 25.) I've met with complete, blank incomprehension and disbelief, so I'll keep my mouth shut & fingers crossed from here on in. These people are professionals; highly-trained accountants one & all, one of them an ex-banker, albeit not at a senior level. Middle-class & comfortable, if not rich, their faith in our system is complete, and I have a strong feeling that they honestly believe, "It couldn't happen here!"

It will be when people like them get hurt that it really will all start to come apart.

Exactly but I do not anticipate bail ins in the UK soon. Even a bail in in Greece is days away, but once capital controls and the banks are closed you are completely at the mercy of the banks. That is why I will be keeping most of my funds out of the banks once debt free.

maryb

There was what looked like a bank run in Fleet Street today. Large crowds of people outside a Nigerian bank and it was getting a bit bad tempered. I googled it when I got home and it's about a registration process (BVN - bank verification number) without which they are being denied access to their funds

Frugalsod

maryb wrote: »

I may well get an Irish passport if there is a Brexit - but Ireland's economy is still so closely linked to the UK that a Brexit could well have major repercussions and I can easily see further changes to the citizenship laws

I have dual nationality and it is always handy especially when things get nasty. It was the anti EU sentiment in the country that pushed me to get mine at the time.

If there is a Brexit I will still be able to travel through the EU citizens only channel at the airport when I get to my destination.

If Ireland does exit which is just as likely because I do not think that the economic situation for most people has improved significantly and onerous mortgage debt is a huge hindrance for many still, it is heavily dependent on other EU countries growing.

Frugalsod

1Tonsil wrote: »

please do not believe what the British media are saying about the Greek people and the mess. Most normal Greeks are not to blame for the situation, they are the victims of it. We need to crack down on the ones who have fiddled millions of euros and not the old lady drawing three hundred euros a month pension. Most of all, the terrible austerity that is hurting folks is because all the money borrowed has gone to save the banks and the european authorities. In the last four years over four thousand Greeks have committed suicide because they cannot take any more. Over half the children live in poverty. Someone mentioned Greeks taking benefits they are not entitled to........for your information, there are no benefits here! Only unemployment, which is paid for one year only and is currently around 125 euros a month. Ninety percent will get nothing, no matter whether they have dependents or not. Before you judge the people here, please get your facts right. You will not get the truth from the British media anytime soon...or Sky tv.....

It is the same in Spain. Unemployment benefits are only paid for 2 years there and most have failed to find a job since so get nothing.

In Greece multiple generations of families are dependent on an elderly relatives pension. So cutting the pensions will cause serious problems.

Frugalsod

1Tonsil wrote: »

I have been thinking about all the food that is in the shops now...they are actually over stocked by miles! In the next few weeks, if we dont need it in an emergency...there are going to be some awesome discounts on food . I can restock my prepping supplies!

I doubt that it will get to that point. I would imagine that people will be trying to empty their accounts and will pay by card to buy anything and everything. Apparently expensive goods are being purchased because they may never get the chance again, especially if they get a new currency and a devaluation.

Frugalsod

1Tonsil wrote: »

The EU asked them to get rid of early retirement. They wanted it to be 67 years of age in the last offer. They also wanted it immediately so all those due to retire this year would have to work longer, even though they had the required contributions credited already. I understand that in the latest letter from Greece, the Greek government ask that it is brought in gradually over the next couple of years. Although this may change as the EU insist that no matter what the vote , the agreement has to start from scratch, along with the negotiations. There is a chance the EU will put in their own government, like they did when they put in the technocrats before......not democratically elected. Hope this makes sense....its very complicated and they keep moving the goal posts...the EU that is...:D

The Greek governments solution is the better one, though I suspect that it will probably have to go higher than 67. I suspect that many countries will eventually have to raise pension age even higher maybe even to 75, but I suspect that many will become unable to work but only qualify for disability benefits until they retire.

The fact that the EU keep changing the rules all the time should be a warning to everyone who lives within a Eurozone nation that is having a problem with debt.

Frugalsod

1Tonsil wrote: »

This is a weird one about Cameron.....what is he thinking?http://rt.com/uk/271864-srebrenica-massacre-cameron-funds/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome

As for Greece.... I am no fan of the Telegraph....but this one echoes what I think is happening right now.... http://www.telegraph.co.uk/finance/economics/11720907/Greece-creditors-will-gain-nothing-from-toppling-Europe-lover-Yanis-Varoufakis.html

The reason he was able to run rings around them is that he is an economist whereas most Finance ministers are lawyers so only see it as a contract. The problem is that the growth promised in the 2012 bail out has failed to appear. So really Greece could sue the EU for breach of contract. They said that cutting spending would cause the the economy to grow. Clearly they were wrong.

Frugalsod

Bedsit_Bob wrote: »

TBH, the only benefit I see in the single currency is, I can travel through France, the Netherlands and Belgium, into Germany (and of course, back again) without having to worry, that I've brought enough of each country's currency.

Though can't much of all that be dealt with by a credit card?