Censorship of question about the credit crunch

On the Sunday Extra show Martin was asked about the credit crunch and answered that he has dropped his advice that the collapse of a bank would be ........infeasibly, unlikely to unlikely. The show was then cut off and fast forwarded to the next safer question. What we missed is on the website. Where Martin said the situation is very scary and that if more than one bank went then we would be serious trouble.

Conspiracy theorists may say that a call from a big bank, maybe LloydsTSB, who advertise in the break of the show, came in. Or maybe the government did not like his comments.

The fact is that from the 1st April 2008 the rules change and there is a capped limit of £4billion for all banks on what savers will get. With a tiny bank like Northen Rock well excedding this figure then any talk of full compensation upon a collapse of a bank is nonsense. Those who want to avoid the risk should remove their investments before this date. But where to put it?

Building societies have to invest at least 50% in homes and even if there is a housing market crash, these homes would be worth something. Local societies tend to have a high ratio in homes, some of the larger ones e.g. Britannia have a lower figure in home and so offer more risk. BTW I belive a housing market crash is likely.
The Telegraph list banks that has higher levels of toxic debt. I would also look with concern at banks with a high level of loan to deposit ratios HBOS 177p Alliance & leicester 173pc I cannot get an exact figure for Santander (Abbey) but Spanish banks are on average 173
http://eldib.wordpress.com/2007/09/29/avoiding-panic-portuguese-bank-close-fund-spanish-banks-hurt-by-rumours/
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/18/cnukbanks118.xml
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Replies

  • This might put Santander (Abbey) top of the risk league based on loan to deposit ratio.
    http://www.recruitspain.com/SpanishMortgageCrash.asp
    “Spain’s mid-cap banks have some of Europe’s lowest core capital ratios (6.12pc) and the highest loan-to-deposit ratios (182pc)."
  • MSE_MartinMSE_Martin MoneySaving Expert
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    Trust me there was no conspiracy theory, just a technical glitch (and a very annoying one at such a crucial time).

    You'll find my view on the credit crunch impact on banks in teh

    Are your savings safe article.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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  • MothballsWalletMothballsWallet Forumite
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    marie: to be fair to our Martin, he's mentioned the change in his policy to say that bank collapses are now "unlikely" in his main articles and (I think) his blog a little while ago now.

    It was a really annoying technical glitch: just a glimpse of what can happen when we all have to switch to digital...
    Always ask yourself one question: What would Gibbs do?

    I live in the UK City of Culture 2021
  • setmefreesetmefree Forumite
    851 Posts
    I think it ain't a question of Banks collapsing, it's more a case of the Banks finally realising that they are just as vunerable as anyone else.
    what i do believe is that we are going into a depression more than a recession, and regardless of status it's time for all to tighten down the hatches.
  • MSE_Martin wrote: »
    Trust me there was no conspiracy theory, just a technical glitch (and a very annoying one at such a crucial time).

    You'll find my view on the credit crunch impact on banks in teh

    Are your savings safe article.
    Could we have something about it in next week's show?:beer:
  • MSE_MartinMSE_Martin MoneySaving Expert
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    Sadly its difficult at the moment as the programmes are themed and we've lost the sunday show - so we're back to just wed which are tight.

    However I am doing a credit crunch special on GMTV next week
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • elantanelantan Forumite
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    why did you loose the sunday shows i honestly thought they were a great idea ..ok i didnt watch them as i am always in bed on a sunday till mid afternoon and dont have the slightest idea how to work the thingamejig....but i'm sure plenty watched it
    march 2011-july2019 8 years and 4 months ... or 100 months and counting
    "what would you do if you knew you couldn't fail.... enjoy the adventure" " to my own self be true"
  • Sue-UUSue-UU Forumite
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    Sorry to hear that Martin, I'd just got into the swing of the Sunday programmes too. Still, thanks for letting us know about GMTV, I'll keep a look out for it..

    Sue.
    Sealed Pot Challenge 001 My Totals = 08 = £163.95 09 = £315.78 10 = £518.80 11 = £481.87 12 = £694.53 13 = £1200.20! 14 = £881 15 = £839.21 16 = £870.48 17 = £871.52 18 = £800.00 19 = £851.022021=£820.26[/SizeGrand Totals of all members (2008 uncounted) 2009 = £32.154.32! 2010 = £37.581.47! 2011 = £42.474.34! 2012 = £49.759.46! 2013 = £50.642.78! 2014 = £61.367.88!! 2015 = £52.852.06! 2016 = £52, 002.40!! 2017 = £50,456.23!! 2018 = £47, 815.88! 2019 = £38.538.37!!!! :j
  • jo_b_2jo_b_2 Forumite
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    elantan wrote: »
    why did you loose the sunday shows i honestly thought they were a great idea ..ok i didnt watch them as i am always in bed on a sunday till mid afternoon and dont have the slightest idea how to work the thingamejig....but i'm sure plenty watched it

    The Extra shows were just a trial by Channel 5 and only commissioned for 3 weeks. :(

    Edinburghlass has made a brilliant suggestion, on another thread, that everybody who'd like them to return on a long-term basis should email Channel 5 and ask. :D
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