grumpy-old-man-returns Posted July 30, 2009 Share Posted July 30, 2009 following the same logic, all bank accounts are unsafe - ISA is a tax shelter, nothing more. yes, but I do not advocate having large sums of money in any bank in the current climate. I don't expect every bank to go down obviously, but which big 3 (or perhaps even 1) will be the eventual winner. fwiw, looks like Goldman Sucks is the stooge......ok, not a retail bank as such, but you get where I am going with this. The disparity between mortgage and savings rates has lead me to secure a better return by paying down the mortgage. I don't think I am the only one doing this ! I agree for those in property that have missed the selling opportunity & have a mortgage, then pay it off as quickly as possible. will we see high interest rates return ? Quote Link to comment Share on other sites More sharing options...
crashologist Posted July 30, 2009 Share Posted July 30, 2009 Buy next year's tinned food Quote Link to comment Share on other sites More sharing options...
Sparkie Posted July 30, 2009 Share Posted July 30, 2009 Oh hell - Gold Bugs please don't hijack....Starter list: Cash in safe and other safe places. Silver and Gold coins (wise component of investment anyway) Silver bars Collectible such as cameras, watches IF you know your stuff Load up Gas and Electric for the next 3 years (you can ask for it back if you move). Prepay other bills. Kids accounts. 'Give' (lend) 3K each to trusted relatives who are not on means tested benefits themselves. Holiday paid in full when booked, not waiting for due date. Get ahead with car and house maintenance that will have to be done anyway. Document all spending that you want the authorities to see as evidence of cash gone. Avoid any audit trail of hidden wealth, e.g. get a friend or relative to buy coins then buy them off them cash in hand. Please feel free to add to the list. The problem for me is I have over £16k in savings and I was made redundant this week, but the DSS can ask to see 3 months bank statements at any point in you claim, so it's too late for me to hide money as it's all linked to my current account. Quote Link to comment Share on other sites More sharing options...
rw42 Posted July 30, 2009 Share Posted July 30, 2009 The problem for me is I have over £16k in savings and I was made redundant this week, but the DSS can ask to see 3 months bank statements at any point in you claim, so it's too late for me to hide money as it's all linked to my current account. You're maybe 4 months ahead of me - 30k premium bonds, 20k bank acc, expecting to be made redundant some point soon. I'd rather not convert the money to anything at risk of theft, but i guess the short answer is that there is nothing i can hold electronically that is not subject to exchange/counterparty risk, that the government would not have visibility of. Not discounting questions of how i'd managed to dispose of that much savings in such a short time.. Quote Link to comment Share on other sites More sharing options...
Sparkie Posted July 30, 2009 Share Posted July 30, 2009 You're maybe 4 months ahead of me - 30k premium bonds, 20k bank acc, expecting to be made redundant some point soon.I'd rather not convert the money to anything at risk of theft, but i guess the short answer is that there is nothing i can hold electronically that is not subject to exchange/counterparty risk, that the government would not have visibility of. Not discounting questions of how i'd managed to dispose of that much savings in such a short time.. Your lucky that you have months to prepare, I have one week. I agree with you gold coins are too risky. I live in rented accommodation, and with savings I get nothing, however if I had no savings and a mortgage, I'd get benefit and mortgage help. As said many times on this site, prudence is punished by this government. Quote Link to comment Share on other sites More sharing options...
Guest Daddy Bear Posted July 30, 2009 Share Posted July 30, 2009 (edited) Getting out of CASH and into ASSETS http://www.guardian.co.uk/business/2009/ju...ings-withdrawal Edited July 30, 2009 by Daddy Bear Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted July 30, 2009 Share Posted July 30, 2009 Getting out of CASH and into ASSETShttp://www.guardian.co.uk/business/2009/ju...ings-withdrawal If you can keep your cash while all about you are spending theirs... Quote Link to comment Share on other sites More sharing options...
ccc Posted July 30, 2009 Share Posted July 30, 2009 Right - so lots of cash will now be tied up in illiquid assets. So how exactly is this inflationary ? Surely the opposite.... I am not saying a high/hyper inflation scenario is impossible. Nothing is. However your latest example doesn't really support your argument. IMO it does exactly the opposite. Quote Link to comment Share on other sites More sharing options...
housepoker Posted July 30, 2009 Share Posted July 30, 2009 Cash is being withdrawn to cover income shortfall or to deposit with retail funds Retail investors are starting to pile back into equity funds at the end of a record quarter for sales, according to the latest IMA monthly figures. ... http://www.investmentweek.co.uk/investment...rn-equity-funds The upshot is that there is less to lend. Follow the money, not housing. HP Quote Link to comment Share on other sites More sharing options...
Dead Spider Posted July 30, 2009 Share Posted July 30, 2009 Sheet , cash is going from the banks to ... um .. hang on .. um .... water resistant bags to Columbia ? um .. other banks ????? Quote Link to comment Share on other sites More sharing options...
Injin Posted July 30, 2009 Share Posted July 30, 2009 Sheet , cash is going from the banks to ...um .. hang on .. um .... water resistant bags to Columbia ? um .. other banks ????? Mattress. Quote Link to comment Share on other sites More sharing options...
Pytyr Posted July 30, 2009 Share Posted July 30, 2009 Getting out of CASH and into ASSETShttp://www.guardian.co.uk/business/2009/ju...ings-withdrawal Getting out of cash and paying off debt. About bloody time too! Quote Link to comment Share on other sites More sharing options...
grizzly bear Posted July 30, 2009 Share Posted July 30, 2009 Cash is being withdrawn to cover income shortfall or to deposit with retail fundsRetail investors are starting to pile back into equity funds at the end of a record quarter for sales, according to the latest IMA monthly figures. ... http://www.investmentweek.co.uk/investment...rn-equity-funds The upshot is that there is less to lend. Follow the money, not housing. HP this is consistent with what i am seeing at work (i work in finance in firm of stockbrokers/IM) even cautious investors piling back into equities, apparently because of low interest rates. Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted July 30, 2009 Share Posted July 30, 2009 (edited) Cash is being withdrawn in record quantities because the great unwashed are now using their savings to pay to keep up their artificially high standard living previously obtained through higher wages. In other words this cash is being withdrawn because of deflationary forces. Houses will continue their onward march to record lows and cash is king. The best way to look at this is Guinness. Good things come to those who wait. Edited July 30, 2009 by D-503 Quote Link to comment Share on other sites More sharing options...
ccc Posted July 30, 2009 Share Posted July 30, 2009 Getting out of cash and paying off debt. About bloody time too! Yet apparently this is hyperinflationary.... Now it may well be, but I just don't get it. Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted July 30, 2009 Share Posted July 30, 2009 Yet apparently this is hyperinflationary....Now it may well be, but I just don't get it. It's not hyperinflationary. People miscall the bottom, buy a house, then spend the next two years talking about imminent hyperinflation to soothe themselves. All the West is facing further deflation and then a long, long period of stagnancy before the next round of insane HPI. It's just a cycle, and those buying now have seriously mistimed this cycle. Quote Link to comment Share on other sites More sharing options...
Injin Posted July 30, 2009 Share Posted July 30, 2009 Cash is being withdrawn in record quantities because the great unwashed are now using their savings to pay to keep up their artificially high standard living previously obtained through higher wages. In other words this cash is being withdrawn because of deflationary forces. Houses will continue their onward march to record lows and cash is king. The best way to look at this is Guinness. Good things come to those who wait. Ok matey. Describe to me how taking money out of the bank and putting it in a safe is a reduction of the money supply. in your own time... Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted July 30, 2009 Share Posted July 30, 2009 Ok matey.Describe to me how taking money out of the bank and putting it in a safe is a reduction of the money supply. in your own time... I said the opposite. The reduction in the money supply is causing people to take their savings out the bank. Quote Link to comment Share on other sites More sharing options...
Injin Posted July 30, 2009 Share Posted July 30, 2009 I said the opposite. The reduction in the money supply is causing people to take their savings out the bank. What reduction? Quote Link to comment Share on other sites More sharing options...
dapperdave Posted July 30, 2009 Share Posted July 30, 2009 He means the reduction in earnings/income is causing a shortfall in personal wealth, which is compensated by spending savings. Quote Link to comment Share on other sites More sharing options...
ccc Posted July 30, 2009 Share Posted July 30, 2009 What reduction? Wages, overtime, bonuses, pensions. That sort of thing. For 99.9% of the population that is all that matters. And until that starts to increase in any great shape or form ? I simply cannot see how any sort of hyperinflation could occur. I may of course be completely wrong. Quote Link to comment Share on other sites More sharing options...
Injin Posted July 30, 2009 Share Posted July 30, 2009 He means the reduction in earnings/income is causing a shortfall in personal wealth, which is compensated by spending savings. Theres no shortfall, ask a banker. Quote Link to comment Share on other sites More sharing options...
Authoritarian Posted July 30, 2009 Share Posted July 30, 2009 (edited) Theres no shortfall, ask a banker. Of course not, its just that all the money has been transferred to the rich via the housing market and now they're sitting on it waiting for everything to collapse. The capitalist economy is performing exactly as it should do. Edited July 30, 2009 by chefdave Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted July 30, 2009 Share Posted July 30, 2009 (edited) What reduction? I'm not getting into one of these metaphysical forays about how money doesn't exist, etc. When lending slows down, the overall quantity of currency units is reduced because of the way usury works. People can't get mortgages. Car makers drop to four days weeks. Wages are cut. Welfare is cut. The economy shrinks. None of these things happen when the money supply is increased. Edited July 30, 2009 by D-503 Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted July 30, 2009 Share Posted July 30, 2009 (edited) He means the reduction in earnings/income is causing a shortfall in personal wealth, which is compensated by spending savings. "In the high street" I do think this is what is happening. Because of those four days week and the slowing down of manufacturing and lending alike, the reduction of the supply of "money" to Joe Public's wallet is causing him to pull his savings out of the bank, because he and Joanne Public refuse to adapt to the new lower standard of living, etc. I agree partly with the poster who points out that there is still plenty of money in the system but that it is simply concentrated in one place (the rich) and they are waiting to buy up houses when they hit the bottom. But then it has ever been thus, and we need to look at how things are for the masses. The super rich have always floated above any trouble. In other words a money supply might have increased for some, but the money supply has been reduced for many. Edited July 30, 2009 by D-503 Quote Link to comment Share on other sites More sharing options...
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