Surviving the coming bank crisis

TCA

Don't stuff your mattress with money - cash will be useless. Spend it now on a decent underground bunker and buy as much canned food as you can cram into it. Or buy shares in Heinz and hope the nuclear winter is short-lived.

Paul_1977

I can see a crisis in a sense that lots of people are buying houses and these people will not be able to afford the mortgage when the interest rates rise.

I can see a crisis in a sense that lots of people have lots of debts, they live on a lie, and these debts are ever increasing fuelled by the banks.

I can see a crisis with the UK which faces many coming problems from aspects of the population, which will make themselves apparent in the coming years.

However the banks have been stress tested and ordered to hold reserves for a rainy day so i don't see a crisis there.

Besides from a personal viewpoint the 2008 crash had hardly any impact on me and neither will the next one. My family lost everything in 03.

BTW, you haven't been watching that economist magazine video have you?

gadgetmind

Paul_1977 wrote: »

Besides from a personal viewpoint the 2008 crash had hardly any impact on me and neither will the next one. My family lost everything in 03.

I'm just an ordinary punter, but every single big drop in the last 25 years has given my investments a boost.

OK the next might see me fighting my neighbours over who gets to eat the fattest rat, but no investment strategy other than bullets and beans would address that one.

Percie_2

I.m unable to post links, so please google
'UK fund manager predicts stock market plunge during next recession'

and
'The next financial crisis – not if but when'

and then please tell me where to invest money safely. Thanks.

gadgetmind

Percie wrote: »

Iand then please tell me where to invest money safely. Thanks.

Well, ignoring people with vested interests is always a good start.

Paul_1977

Put it in an HSBC bank account, they are the safety bank.

edinburgher

Gold and beef jerky, luxury beef jerky?

Spidernick

Paul_1977 wrote: »

Put it in an HSBC bank account, they are the safety bank.

A Swiss one might even save you some tax!

coyrls

Percie wrote: »

I.m unable to post links, so please google
'UK fund manager predicts stock market plunge during next recession'

and
'The next financial crisis – not if but when'

and then please tell me where to invest money safely. Thanks.

From your first article:

He concluded: “We are in the first stage of this downturn. It is too early to see what will happen – a change of this magnitude means the darkness and mist is very great”.

From your second article:

The situation will stabilise if there is a return to sustained growth (leaving aside its environmental consequences). But this is not expected.

So that's clear then. And no mention of 18 months in either article.

Ryan_Futuristics

There are always commentators predicting the next crash ... Do a Google search and put any year you want next to it - e.g.: market crash 2012

I always sing the praises of Neil Woodford, because he only seems to talk sense - and of course his track record backs him up ... Here's his take on these issues from an article today:


“The US, UK and Europe followed Keynesian policy in an attempt to insulate their economies, but as a result it has created more debt and deflation ... We have had a recession, but in trying to drag ourselves out of it we have created even more debt. I believe that in the future the response of policy makers will be seen as a fundamental error.”

The actions of the Federal Reserve, the Bank of England and the European Central Bank – namely to pump markets up with quantitative easing – has resulted in a distorted investment environment, in which Woodford says it is impossible to compare and contrast asset classes.

“Finnish sovereign bonds now have negative rates, Nestle has negative rates on its corporate bonds and Unilever is offering 0.5% on a seven year bond – these rates are telling one story, but equity prices are telling another,” he explained. “If I had to bet on one being wrong I would say the equity prices are, and that we are due a major market correction. But I said that in 1999 and the stock market rallied for a further 18 months. When I think about the investment environment I would say it is as challenging as the economic environment. The risks are greater than they were three or four years ago, it is a very difficult situation for fund managers.”

Woodford: Passive Funds Won't Deliver

http://www.morningstar.co.uk/uk/news/134354/woodford-passive-wont-deliver.aspx