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HovelinHove

Cantona's Plan Was Silly, But There Might Be A Way

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Everyone withdrawing their savings at once was never going to work. Too risky for individuals, and we don't actually want the banking system destroyed...it serves a useful purpose. However, at the moment they don't understand that they are a service that is easy to provide at much lower costs than they currently charge, and they need to be shown who's boss (us, their customers), and I believe there is a way to do this effectively with low risk to your own wealth (with a potential upside) and without destroying the system.

If you haven't read the article in the Telegraph about Zopa, I recommend you do. Also, go their website ZOPA. It seems like a great idea to me, and is gaining traction. You choose the level of risk, and you can spread your money across groups of borrowers and levels or risk. You don't have to put much in. To me it seems like the modern day equivalent of a building society and is simply trying to be nothing more than the middle man between the saver and lender without making excessive profit. There is no way I would move all my savings to Zopa, but I'd be prepared to risk £500.

If every saver moved £500 (or say 5% of their cash savings) to Zopa (or some other credit union type organisation) on the same day, that would send a very serious message to the banks without bringing them down, or risking getting mugged (except possibly, but hopefully not, by Zopa). If the campaign were to repeat this once a month until the banks gave way to a fixed list of sensible demands (smaller margins between saver and borrower rates financed by bonus caps and payback of past bonuses possibly) then I think it would work.

What thinks you? Please respond to the poll and if enough of you say you'd go for this, I will start a campaign with the first day of withdrawl being end of January. Of course, for it to be successful would rely on a large number of people on this site using social networking tools to inform people.

Edited by HovelinHove

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Everyone withdrawing their savings at once was never going to work. Too risky for individuals, and we don't actually want the banking system destroyed...it serves a useful purpose. However, at the moment they don't understand that they are a service that is easy to provide at much lower costs than they currently charge, and they need to be shown who's boss (us, their customers), and I believe there is a way to do this effectively with low risk to your own wealth (with a potential upside) and without destroying the system.

If you haven't read the article in the Telegraph about Zopa, I recommend you do. Also, go their website ZOPA. It seems like a great idea to me, and is gaining traction. You choose the level of risk, and you can spread your money across groups of borrowers and levels or risk. You don't have to put much in. To me it seems like the modern day equivalent of a building society and is simply trying to be nothing more than the middle man between the saver and lender without making excessive profit. There is no way I would move all my savings to Zopa, but I'd be prepared to risk £500.

Correct me if I'm wrong but doesn't Zopa have to put your funds into an underlying bank at the end of the day? It can't possibly have all the payment systems and links to SWIFT etc. So all you'll do it take your money out of one part of the banking system and put it into another part. The reality seems to be that there are only a few banks including the Bank of International Settlements and the Central banks - as long as there is liquidity other banks can always borrow money from them!

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Interesting, although wouldn't you (somewhat ironically) risk overloading Zopa's website / services on that day?

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Correct me if I'm wrong but doesn't Zopa have to put your funds into an underlying bank at the end of the day? It can't possibly have all the payment systems and links to SWIFT etc. So all you'll do it take your money out of one part of the banking system and put it into another part. The reality seems to be that there are only a few banks including the Bank of International Settlements and the Central banks - as long as there is liquidity other banks can always borrow money from them!

I thought the mass of Indian micro loans were supplied and dealt with by Indian banks...80% of the loans made by banks. and they were having a default problem.

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I lend on Zopa. Couple of things - first is that it's not for everybody as requires monitoring with risk of late payments, credit/default factors etc, second is that the segregated bank accounts are held at RBS so not sure your plan quite comes together yet.

Edit: Didn't see post above ^

Bugger...didn't think of that. Still, it would have a big impact on the other banks, and ultimately force them to become more competetive to get the money back.

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What's needed is a new bank with strict new ethics, started by a philanthropist billionaire.

Combined with strict regulation, all the others would be forced to follow the money.

Bill Gates is the only candidate I can think of, and :

1. I don't think he'd be up for it.

2. He'd have to apply his Gates Foundation head to it and not his Microsoft head, or it'd be no better than the rest.

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What's needed is a new bank with strict new ethics, started by a philanthropist billionaire.

Combined with strict regulation, all the others would be forced to follow the money.

Bill Gates is the only candidate I can think of, and :

1. I don't think he'd be up for it.

2. He'd have to apply his Gates Foundation head to it and not his Microsoft head, or it'd be no better than the rest.

Why do you need a new bank? There are a couple of them with strict, customer written ethical policies out there.

Bill Gates? Ethics? :lol:

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I don't think it would work this time. No celebrity endorsement or second bite of the cherry.

We need money and the liquidty it gives just to function. People won't notice a mass transfer as it won't affect their everyday lives - it's immaterial, quite literally. What we need is real protest on the streets (and if thats not feasible as the authorties will shoot us/them down) then we should appendage ourselves to the next wave of fuel protest. My thoughts would be to have a national car break down day. You'd only require a few thousand cars to 'break down' in strategic locations to cause absolute mayhem across the entire country. Bear in mind that this would have a devastating effect on supplies food/fuel etc etc and would take months of pain to rebalance but the message would be clear and unaminous.

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Correct me if I'm wrong but doesn't Zopa have to put your funds into an underlying bank at the end of the day? It can't possibly have all the payment systems and links to SWIFT etc. So all you'll do it take your money out of one part of the banking system and put it into another part. The reality seems to be that there are only a few banks including the Bank of International Settlements and the Central banks - as long as there is liquidity other banks can always borrow money from them!

Zopa holds lenders' funds in an RBS account while waiting to match borrowers. Once matched the money is moved out of the RBS account and into the borrowers' bank accounts.

The main difference between Zopa and a bank, is that Zopa is a match-maker (broker) and not a lender itself. Like smaller banks (eg. Egg) it has to use the underlying payment systems of the main banks in order to operate.

We all need payment systems. I would like to see banks move to more of utility-style model where the fees are clear for the simple services we all need.

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Why do you need a new bank? There are a couple of them with strict, customer written ethical policies out there.

Bill Gates? Ethics? :lol:

Are there?

Which ones?

My feeling is that if they were truly ethical they'd be a better deal than the rest so would quickly grab huge market share.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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