Preparedness for when

Frugalsod

Butterfly_Brain wrote: »

As others have said, start a little nest egg outside of the banks grasp, mostly in change.

But if things go belly up with the banks again expect bail ins to be brought in straight away.

As a country we are currently £1.4 trillion of debt, things could get out of hand very quickly if creditors demand their money back, especially as growth has stagnated.

I do not think we need to keep mostly in change, (good for kids though) but certainly a sizeable wodge of small change.

Yes the banks will probably need to be bailed in depending on what triggers it. A derivative crash would exceed the ability of even depositors to bail out the banks.

It is not the government debt that is of concern. It is private debt that is the real problem, especially of the financial sector which is much larger than even government debt. Even the debts of individuals exceed government debt and that is not even being considered except a very few economists. As a nation we need to pay down trillions of private debt to get our debt to sustainable levels but that would cause a stagnant economy for as long as it takes.

daz278

Hello people still on internet dongle .... ive returned for my daily dose of sanity.....a few years ago i owed over 2 k on credit cards short term debt .... now thankfully have whittled it down to a couple of hundred ...still adding tins to prepps and water ... this chineese stock market business is worrying....is personal debt rising ? id have thought in these uncertain times the consensus would be to pay down debt as a society

mardatha

greenbee wrote: »

Breaking news for Mar - I've just heard on the radio that there's going to be a kale shortage...

OH MY GOD WHAT A SHAME HOW ON EARTH WILL I COPE!?
....easily!

mardatha

Am I the only one then who finds it dead odd that a top political person like G Brown's former advisor, should open his gob and advise us to stock up with cans and bottled water, and get our money out of the banks? Is that not a first class way to start a bank run?

Frugalsod

daz278 wrote: »

Hello people still on internet dongle .... ive returned for my daily dose of sanity.....a few years ago i owed over 2 k on credit cards short term debt .... now thankfully have whittled it down to a couple of hundred ...still adding tins to prepps and water ... this chineese stock market business is worrying....is personal debt rising ? id have thought in these uncertain times the consensus would be to pay down debt as a society

The Chinese stock market is not a major concern of mine because it will be primarily Chinese money that evaporates. It is its impact on the sentiment of others here which is more important. China will have problems as a result because they do not have unemployment or sickness benefits. Which is why they save so much. As a result they save far too much for the Chinese banks to lend prudently within China, so they have lent huge sums abroad via the interbank market. This is what destroyed Northern Rock as they were dependant on interbank funding. If the losses in China keep growing as I expect they will it will create problems for Chinese banks in that margin debt on Chinese shares will become more unlikely to be repaid. That might trigger them to reduce funds placed into the interbank market. This could trigger another credit crunch. This could trigger losses in some bank somewhere else where its government is unable to bail them out. This would mean losses having to be taken and then it would force a revaluation of all debts and possibly government bonds. This is why they are trying to avoid declaring Greek debt as loss.

Most private debt is linked to mortgages, but there are significant student loans and credit card debt as well as other unsecured debt. So while the sensible have seen the writing on the wall and started repaying debts many have not and some are even borrowing lots of money as they see that unemployment is low, ignoring the fact that many are on zero hour contracts or sanctioned so do not count as unemployed. So official stats look better than they really are.

https://www.youtube.com/watch?v=XadrF1A9N5E

Frugalsod

mardatha wrote: »

Am I the only one then who finds it dead odd that a top political person like G Brown's former advisor, should open his gob and advise us to stock up with cans and bottled water, and get our money out of the banks? Is that not a first class way to start a bank run?

Yes but we have been saying that for months, still no bank runs. I suspect that many senior politicians and apparatchiks see the writing on the wall and want to make it clear what they feel before history marks them for incompetence and permanently stains their legacy.

Butterfly_Brain

This is well worth a watch
http://usawatchdog.com/vicious-out-of-control-downturn-coming-chris-martenson/

Frugalsod

Butterfly_Brain wrote: »

This is well worth a watch
http://usawatchdog.com/vicious-out-of-control-downturn-coming-chris-martenson/

It is a good article. There could be as much as half of the worlds wealth wiped out as a consequence of all of this. Some estimate $100 trillion world wide and $40 trillion in the US alone. This will impact the very rich more than me.

GreyQueen

mardatha wrote: »

Am I the only one then who finds it dead odd that a top political person like G Brown's former advisor, should open his gob and advise us to stock up with cans and bottled water, and get our money out of the banks? Is that not a first class way to start a bank run?

A staggering amount of people don't read a newspaper (or a newspaper website) at all. Or if they do, choose to ready sleazy red-top tabloids. The doings of boy bands and the swelling and then flattening of celebrity women's pregnant tums are far more newsworthy than the economy.

If something of this nature, from a celebrity, was trending on twitface or being shared multi-million times on faceache, it might get some small traction in the public consciousness, until the next distraction. As is, it will be seen by a few, and many of them will smile and turn the page over.

Is this a former advisior who was involved in the debacle of the sell-off of a substantial chunk of the nation's gold reserves for ridiculously low prices, does anyone know? If so, he should shut his trap and consider that he and his former master are lucky not to be on trial for treason.

Frugalsod

GreyQueen wrote: »

Is this a former advisior who was involved in the debacle of the sell-off of a substantial chunk of the nation's gold reserves for ridiculously low prices, does anyone know? If so, he should shut his trap and consider that he and his former master are lucky not to be on trial for treason.

I heard that the reason for the sale was that a London bullion bank had massive losses on bullion trades and this was the reason for the sale of said bullion to bail the bank out. So nothing to do with mismanagement by the government.