European Finance Ministers states Cyprius bailout now a template

mcfisco

shortchanged wrote: »

We're not talking about that though are we.

Savers are being hit in Cyprus, tantamount to theft which some people think is OK.


I am saying what reaction do you think we would get, particularly on here if the lenders whacked up the mortgage rates really high without any rise in the base rate.
(By the way I'll give you a clue, have a read of the BoI interest rate threads.)

The reaction on here is irrelevant, it's the internet, not real life.
No one will die if a few keyboard warriors get a bit hot under the collar.
Reaction on the whole doesn't really matter anyway, it's how people cope and adjust to events that matter

wotsthat

shortchanged wrote: »

Thanks for clarifying that wotsthat. So it's OK to pinch savers money like some on here think it is?

That's the most long winded, lame and poorly constructed strawman we've seen for a while:T:T

If my mortgage goes up tomorrow by £100's I'll be cheesed off. What's that got to do with depositors taking a haircut in Cyprus?

Graham_Devon

wotsthat wrote: »

Why would an increase in borrowing cost be considered theft?

Most certainly it would be - yes.

Read the recent Bank of Ireland threads.

wotsthat

Graham_Devon wrote: »

Most certainly it would be - yes.

Read the recent Bank of Ireland threads.

I may well be angry if my mortgage was hiked or someone didn't repay money I'd lent - I'd probably have a good chunter about liars and thieves too but it's neither here nor there.

Take a loan and there's a risk that the costs increase. Make a loan and there's a risk it might not be repaid.

Graham_Devon

wotsthat wrote: »

I may well be angry if my mortgage was hiked or someone didn't repay money I'd lent - I'd probably have a good chunter about liars and thieves too but it's neither here nor there.

Take a loan and there's a risk that the costs increase. Make a loan and there's a risk it might not be repaid.

Who's talking about making loans? There are products set up to do this, including higher risks. Can't remember the name of it off the top of my head. But it allows you to lend your money to other individuals in return for interest.

Unless you are working on technicalities again and suggesting that savers are not saving, but lending money out?

wotsthat

Graham_Devon wrote: »

Unless you are working on technicalities again and suggesting that savers are not saving, but lending money out?

If you don't like the technicalities because they blow a hole in your argument then just ignore them.

Graham_Devon

wotsthat wrote: »

If you don't like the technicalities because they blow a hole in your argument then just ignore them.

I'm a bit busy at the moment writing an e-mail to the site owner requesting that the savings board is renamed "lending board".

wotsthat

Graham_Devon wrote: »

I'm a bit busy at the moment writing an e-mail to the site owner requesting that the savings board is renamed "lending board".

Martin Lewis put together a handy guide. It's really aimed at teaching small children about money and banks but let me know if you get stuck.

http://www.moneysavingexpert.com/savings/child-savings-tax-free

The difference between piggy banks and real banks

Here's a handy simple explanation: "Put your cash in a piggy bank and it sits there, but put it in a real bank and you're actually lending them your money - so they need to pay you for it.

Is it safe?

It's an interesting discussion to have with Graham. There's a balance here. A piggy bank is kept at home where you can see it, though it can be stolen (don't say that if it'll scare him). Yet money in the bank is safe and earns interest, but there's a very slight risk the bank may collapse.

If it does, provided it's a UK-regulated account (all those listed below are) the money is protected up to £85,000 per person by the Government (see the Safe Savings guide) which is as safe as we can hope for.

Don't have nightmares.

Graham_Devon

Getting a bit tetchy and insultive eh Wotsthat?

CLAPTON

Once upon a time there were places that would look after your money for you.
They would simply lock it up in a safe.
They would charge you a small fee for keeping your money safe.
The depositors could always guarantee getting their money back because this place didn't lend out the money; they simply stored it in their safes.
They had a name called Trust Banks.


After a while they changed and offered to pay interest on the money rather than charging a fee.
So now people lent the bank the money and received interest.
The bank then lent out the money for interest to other people.
Of course the bank could no long guarantee to be able to return all depositors money as it was lent out to other people

So we maybe need to reinvent trust banks that simply hold your money and charge you a fee.