Do you think the market will crash?

WTF?_2

Doozergirl wrote: »

If Northern Rock did go under it would be due to all the panic stricken idiots pulling their money out. :rolleyes:

What will happen though is that it will get bought out by someone else and all the panic stricken idiots will say 'told you so' followed by 'I only paid a tenner for my house and I've made a fortune; I'm really clever, me'

It's just emerged (on BBC News24 this afternoon) that they tried to sell themselves to another bank before this crisis but that fell through - hence they had no choice but to go to the BoE in order to stay in business.

Plus NR share prices had been dropping quite rapidly on the stock market in recent weeks and other banks wouldn't trust them enough to lend to them so clearly those 'panic stricken idiots' getting their life savings out aren't the only ones who don't have much faith in the bank. :rolleyes:

Guy_Montag

Doozergirl wrote: »

Well, I will now know when the crash comes because everyone will be screaming and commiting hari-kari.

What is wrong with having your own mind, I have no idea. I need to watch more ITV

Oops I meant to quote you, not thank you. But you're a lot of fun, so the thanks will do for that.

I wasn't commenting on whether it's right to panic, merely that, it's better to be the first to empty your account (or stock up on bread/water/fuel) than the last.

nelly_2

http://forums.moneysavingexpert.com/showthread.html?t=553176

Guy_Montag

!!!!!!? wrote: »

It's just emerged (on BBC News24 this afternoon) that they tried to sell themselves to another bank before this crisis but that fell through - hence they had no choice but to go to the BoE in order to stay in business.

Plus NR share prices had been dropping quite rapidly on the stock market in recent weeks and other banks wouldn't trust them enough to lend to them so clearly those 'panic stricken idiots' getting their life savings out aren't the only ones who don't have much faith in the bank. :rolleyes:

Rumour has it the BoE &/or the FSA blocked the sale.

daisyroots_2

ian13 wrote: »

Do you think the housing market is likely to crash? Given the reaction to the Northern Rock crisis, it seems that people may be loosing trust in the financial boom.

So is it a good time to sell up and downsize, sell to rent, or just stay where you are? And is there a good option as to what to do with the proceeds. Maybe savings isn't a good idea after all..?

I don't think the housing market will crash, though there will probably be a "correction" which - unless you want to sell your house and not buy another - is probably a good thing. During the negative equity days of the early 90s, those who sat tight and waited didn't lose out.

If prices level out or even fall, there are enough people with cash sloshing about who know a buying opportunity when they see one, and will buy to let.

Doozergirl

Guy_Montag wrote: »

Oops I meant to quote you, not thank you. But you're a lot of fun, so the thanks will do for that.

I wasn't commenting on whether it's right to panic, merely that, it's better to be the first to empty your account (or stock up on bread/water/fuel) than the last.

Consider yourself repaid the thankyou, lol.

I'm just bored. And grateful I don't have any savings with Northern Rock.
Do you think my Jupiter S&S ISA is alright? (panic)

EDIT: I'm more worried about the bloody house selling actually - I think I'm going insane!

dolce_vita

Doozergirl wrote: »

Do you think my Jupiter S&S ISA is alright? (panic)

quote]

It depends on what it's invested in.

WTF?_2

daisyroots wrote: »

I don't think the housing market will crash, though there will probably be a "correction" which - unless you want to sell your house and not buy another - is probably a good thing. During the negative equity days of the early 90s, those who sat tight and waited didn't lose out.

If prices level out or even fall, there are enough people with cash sloshing about who know a buying opportunity when they see one, and will buy to let.

With regards to people who bought at the tail end of the eighties, on average they didn't see their property recover its value until the end of the nineties.

Bad news if they wanted to move house, trade up or sell for whatever reason in the intervening decade.

Once prices start falling, most people aren't going to jump in and buy in a falling market. And BTL will only make sense again when yield goes above what you can get in a savings account, which could be quite some time.

Doozergirl

dolce_vita wrote: »

It depends on what it's invested in.

I'm sure it's UK Growth!!! :eek:

(Dare I say, it's a long term investment; I don't really count it as money right now. I have no clue.)

dolce_vita

Doozergirl wrote: »

I'm sure it's UK Growth!!! :eek:

(Dare I say, it's a long term investment; I don't really count it as money right now. I have no clue.)

It's a fund which contains some solid large cap holdings such as BP, Vodafone and marks and spencer along with more riskier and volatile holdings.

Should produce a decent return over the long term.