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Author Topic: Cheeky Banks  (Read 3121 times)

  • Offline shofty

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Cheeky Banks
Reply #15 on: March 28, 2008, 08:57:50 AM
Quote from: Sam
Theres no risk to us. The govt covers our cash.


negative captain, if a bank fails the govt may choose to bail them out, or it may not. theres no law states that they have to.

Northern Rock - govt stepped in to save little people.

Barings Bank - people with lots of money to lose lost lots of money.

Matt
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  • Offline SteveF

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Re:Cheeky Banks
Reply #16 on: March 28, 2008, 09:10:00 AM
Quote from: Dave
this is pretty simple guys - banks make X amount from fees, BACS transfers etc,,, - take away those revenue streams and theyll just find another way to replace them - it isnt in their interests to just sit back become less profitable now is it.

Thanks for simplifying it but the point is they dont do it for free - we pay for it.  Sam missed that.

Technically they are having those revenue streams removed and theres a fair chance that they wont find a direct replacement for them.


And Sam your money really isnt safe at all.  The bank backing in the US is going to cause huge amounts of inflation, combined with a slumping real economy is the worst thing possible for savings.  Because the central bank is printing more cash to back the banks isnt the same as securing the money.  Its the same as securing the banks and lighting the touch paper on inflation.  Devaluing everyone in the USs savings.  Plus its borderline illegal as Bear Stearns is being funded through an intermediary.
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  • Offline Dave

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Re:Cheeky Banks
Reply #17 on: March 28, 2008, 10:20:12 AM
Quote from: bytejunkie
Quote from: Sam
Theres no risk to us. The govt covers our cash.


negative captain, if a bank fails the govt may choose to bail them out, or it may not. theres no law states that they have to.


financial services compensation scheme does actually guarantee deposits up to 33000 - 100% of the first 2000 and 90% of the rest (edit - actually this has been changed to offer more coverage after NR)

Quote

Technically they are having those revenue streams removed and theres a fair chance that they wont find a direct replacement for them.


doubt it very much - the just need to restructure their charges which they will do.
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  • Offline Sam

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Cheeky Banks
Reply #18 on: March 28, 2008, 12:05:35 PM
Quote from: bytejunkie
Quote from: Sam
Theres no risk to us. The govt covers our cash.


negative captain, if a bank fails the govt may choose to bail them out, or it may not. theres no law states that they have to.

Northern Rock - govt stepped in to save little people.

Barings Bank - people with lots of money to lose lost lots of money.

Matt


Positive captain.

As Dave points out we are protected up to 30K or something per bank, so if you have 90K put it in 3 banks and you cannot ever lose a penny.

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  • Offline SteveF

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Cheeky Banks
Reply #19 on: March 28, 2008, 12:18:50 PM
unless the protection (basically printing money) causes inflation, which it will...
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  • Offline Sam

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Cheeky Banks
Reply #20 on: March 28, 2008, 12:29:10 PM
That statement makes no sense SF.
For a start its been there for donkeys and inflation hasnt reached 1000% yet.
And secondly, inflation doesnt remove the protection. You should word your statement more carefully as, "the level of protection falls in real terms over time due to inflation"

I think 30K will be a lot of money for a while to come though, dont you? (Perhaps you dont in which case buy me an ipod).
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  • Offline Mark

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Re:Cheeky Banks
Reply #21 on: March 28, 2008, 12:44:48 PM
Im still annoyed that we arent operating on futuristic credits
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  • Offline shofty

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Cheeky Banks
Reply #22 on: March 28, 2008, 13:19:49 PM
Quote from: Sam
Positive captain.

As Dave points out we are protected up to 30K or something per bank,


only if theyre in the FSCS scheme. and Im willing to bet my lunch that you didnt double protect that you were check the last time you invested money.

edit - it seems regulation by the FSA implies membersip of the FSCS. so were all pretty much covered.

Matt
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  • Offline SteveF

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Cheeky Banks
Reply #23 on: March 28, 2008, 13:36:37 PM
I think inflation will wreck the US and I think itll be a bigger crisis than the recession if Im honest.

Quote from: Sam
I think 30K will be a lot of money for a while to come though, dont you? (Perhaps you dont in which case buy me an ipod).

£300 isnt a lot of money.  If youre paying 30k for an ipod youre stuffed. ;)
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  • Offline Clock'd 0Ne

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Re:Cheeky Banks
Reply #24 on: March 28, 2008, 13:39:32 PM
£300 could be a months shopping for a family of four. Id say its a lot of money, certainly not little enough to be frivolous with. I think a lot of people on this forum would be gutted to lose £300, financially as well as emotionally.
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  • Offline SteveF

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Cheeky Banks
Reply #25 on: March 28, 2008, 14:42:33 PM
True.  I personally dont think £300 is a lot of money but I appreciate that its a lot to someone in India.  If I lost £300 Id be a bit annoyed at myself but dont think it would really bother me beyond kicking myself for being stupid.

I did however assume we were talking about professional people who could afford to spend money picking a high end mobile phone.  The same person spending £300 on food for a family of 4 is never going to be in this market (or this thread).

edit: and frankly people who are fussed about £300 arent going to have enough investment or savings for any of this stuff to make the slightest difference.  People with $30k+ savings are.
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Re:Cheeky Banks
Reply #26 on: March 28, 2008, 14:46:28 PM
stuff India, its a lot of money to me!

Thats 3 months food and would go further if I actually tried to stretch it.

Its also a months rent, and a weeks pay.
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  • Offline SteveF

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Cheeky Banks
Reply #27 on: March 28, 2008, 14:52:13 PM
Do you have enough savings to care about inflation or bank protection beyond the government minimum tho?  If not then youre exempt from the group of people it matters to.

edit: its not even a third of my rent.  It is a months council tax tho I guess...
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Re:Cheeky Banks
Reply #28 on: March 28, 2008, 15:27:09 PM
Not enough savings to worry, but my income is essentially fixed for the next 3 years so if inflation goes silly I have a problem, or at least a pay cut in real terms.

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  • Offline Sam

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Cheeky Banks
Reply #29 on: March 28, 2008, 17:54:37 PM
Quote from: bytejunkie
Quote from: Sam
Positive captain.

As Dave points out we are protected up to 30K or something per bank,


only if theyre in the FSCS scheme. and Im willing to bet my lunch that you didnt double protect that you were check the last time you invested money.

edit - it seems regulation by the FSA implies membersip of the FSCS. so were all pretty much covered.

Matt


Actually I did. I have money in first save and icici and wanted to check they were covered. Please send me $10 by paypal for my burrito tomorrow.
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