Friday, Mar 30, 2007
There will be more of these "failures" as our banking system collapses
FT.com: Banking glitch delays salaries
We used to read about teachers, government workers, nurses and the like not being paid in former Soviet republics or in tinpot dictatorships.
Now we are feeling it. Welcome to Bankrupt Britain 2007.
Posted by lvmreader @ 11:58 AM (253 views) Add Comment
26 Comments
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1. Anon said...
Don't be silly! This is a one of glitch. Your comment has confirmed to me that this website is complete nonsense.
2. denzil said...
Crikey lvm don't you think your title and abstract are a little OTT in relation to a fault. The BACS problems is hardly a common occurance and has little to do with tinpot dictatorships or bankrupt Britain but more to do with a technical fault which was quickly identified.
Granted it shouldn't happen but leaping into Soviet republics is a leap of faith no?
3. harold said...
Yes, IVM perhaps a bit OTT with this one. Question is, this 'hitch' means that the bank can use/earn interest on the money - which even for a few hours amounts to tens of thousands of £s in interest. Will this be paid back to inconvenienced workers? Don't hold your breath. Nice work if you can get it.
4. lvmreader said...
OTT? Perhaps.
Time will tell - time to reread about Argentina in 2002. When the banks stopped allowing people to withdraw money.
By closing banks most hours of the day. Or having system "failures".
http://news.google.com/archivesearch?hl=en&rls=GGLG,GGLG:2005-36,GGLG:en&resnum=0&ie=UTF-8&oe=UTF-8&um=1&tab=wn&q=argentina+collapse
5. mrmickey said...
People think it's funny that old people hide money around the house rather than put it in the bank, they've experienced banking crisis first hand and have a healthy distrust of banks. Most people alive now have never experienced a run on the banks or tried to get money from the cashpoint only to find they can only withdraw £20 a day. I agree that this "glitch" appears to be a one off but their does appear to be quiet a few cock ups and frauds effecting peoples bank accounts at the moment. Maybe we are putting way to much trust in the banking system and should keep a bit of cash under the sofa just in case.
6. tyrellcorporation said...
Ahhh but with the real inflation rate at about 10%, money under the pillow would be worth diddly-squat in a matter of a few years. The banks have probably just worked out that keeping the money for an extra few days will earn them £20,000,000 in interest! Easy money! The worst that can happen is that people out this weekend will have to buy Strongbow instead of Magners!
7. mrmickey said...
If you can't get the money out of the bank is worth diddly-squat as well
8. tyrellcorporation said...
I still think that's a tad alarmist!
9. Tara747 said...
harold, good point (post 3). They're maybe using it to cover all those bad debts...
10. paul said...
lvmreader, really.
If this suddenly started happening regularly then you might, perhaps, maybe, forseeably, conceivably, have a point.
But right now your connection between this and bank consolidations and bad debt issues is utter nosense. Stop it!
11. paul said...
Anon, you don't get off lightly either.
a) For not having the courage even to call yourself by a name (doesn't even have to be a real name, remember!) and
b) For attempting to discredit the whole site on the basis that lvmreader posted this when drunk on cheap lager and high on nihilistic thinking.
12. dohousescrashinthewoods said...
Highly alarmist in my view. @Anon, this is not the normal thrust of this site.
Yes, there could be a conspiracy.
Yes, it could be the banks looking to make a pot to cover all those charges they are going to have to pay back (almost believable)
But then again, this is IT. I work in it, I have a lot of respect for it, but it is fundamentally flaky and your average blood-sucking dodgy little IT outfit (Accidenture, E[xtremely]D[odgy]S[oftware], Toilette and Douche, etc.) compounds the issue.
13. mrmickey said...
Oh by the way what about the other "glitch" with 46,000,000 credit card details being nicked, and now only coming to light as much as 5 years later.
14. disciple said...
This could be and most probably is a glitch. However, when things like this happens you take note and watch! Notice the last one was in 1997! A few years later the FTSE nearly sent us into a depression! This was adverted, luckly by the Fed & Bank of England, but all they have done is was put off the depression, creating an even bigger problem in the future.
If this isn't a glitch then in two to three years the same thing will happen again with the markets, they will crash on massive scale, just like 1999 & 2000. Then you will know that 97 anf this one were not glitches but a precursor to a big problem. Pleasde remember Enron, World Com and LCTM which went bad and nearly caused a financial collapse in the western banking system, 1998!
15. lvmreader said...
Gold-Eagle.com: How A US Currency Crisis Can Unfold
Imagine going to your bank (probably online) and wanting to take out say 50k, say half of your cash, so you can go buy say, Yen. The bank tells you, "you are only allowed to take out 5k per month, it's a new law." This would be same situation for a brokerage account.
Sound far fetched????
Argentina did that in about 2002. The Argentine peso collapsed, people wanted to take their pesos and sell for dollars. The Argentine government just told the banks, don't let them pull out their money. Freeze the bank accounts. The peso dropped like a stone and the people with money in the bank... just had to watch... and starve too. There was rioting in the streets of course, for months.
16. disciple said...
conspiracies are always around. We are a Capitalist society for pity sake! We are out to make money and to rule the world. Take a good look at the US! Are there McDs all over the world? Ever heard of the phrase, 'We are becoming Americanised'? Also remember Greenspan and his little essay on the Great Depression, he believed it was the FED that caused it! Looks like they will cause it again.
By the way isn't real inflation the amount of money being printed and entering the financial system? Is it inflation a phenomenom only to paper currency? If this is true then there is another word for inflation and I believe it's more accurate: FRAUD. IE more money is printed than there should be.
How many of us here would love to own your own legal money printing machine!? Well the FED has one. The other great thing about money is it isn't achored to anything! No gold doesn't live here anymore, so how do you know what 'money' is worth? UMMMMMMMM
17. lvmreader said...
MrMickey is right
Von Mises Institute: No Tears for Argentina
"Given that the statement came from government, one may not worry too much about it if this declaration was based on ignorance or an outright lie. " compare this with "The Treasury responded to his warning by claiming that the decline in savings is a result of economic stability. A spokesman said: "The UK's macroeconomic performance, in the words of the IMF, remains impressive. And with a strong and stable economy, the UK is well placed to benefit from the opportunities of globalisation and absorb shocks. " Is it just me or does this sound like Gordon Brown anyone?
18. lvmreader said...
@disciple,
I agree with your sentiment.Except one thing. The US Dollar is backed by something............
19. lvmreader said...
"You can't be 'debt collected' on when you are harder than the would-be debt collecter"
- LVMReader, 2007
20. denzil said...
If it makes you happy lvm post a few more pictures and use few loud fonts it won't ever escape the fact that this is a completely laughable thread.
21. rich said...
lvmreader, I don't mean to cause offence, but would you mind stopping adding images and text effects please?
22. paul said...
lvmreader, put down that can of Red Stripe and step away.
23. pedagog said...
This thread is not 'laughable' or trivial if, like me, you are one of those effected.
Glad I've got a 3k overdraft limit, looks like I might need it.
24. Pedagog said...
sorry 'affected'
25. lvmreader said...
@Paul "Red Stripe"? - please! As a creature of the NeoLabour movement, it has to be some sort of middle class, hard-to-get aperitiff.
Leffe Brun for breakfast
Cherry Beer for Elevenses
Leffe Blonde for lunch
Krug Champage for High Tea
A variety of newer alternative beers to impress the neighbours as we converse around my mewed granite worktops in a suitably upscale sounding neighbourhood.
26. lvmreader said...
All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.
Arthur Schopenhauer