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Incredible! A man was allowed to speak on Jeremy Vine who was both informed and cogent today.

Amongst other gems that he got across were:

- that greece's debt were created out of thin air and so who cares if they default

- that the banks should be allowed to fail

- that if people lose their savings then it is the risk the take when they invest; "investments can go up or down"

- That the banks have lent to odious dictators in Africa and then used those loans as an excuse to pump out their mineral wealth, and this is no different to Greece

My god! Good sense on the Vine. I almost choked on my ciabatta. Not only that but he was from Tunbridge Wells too. For a moment I had a Tyler Durden moment, before realising that Jeremy Vine has almost certainly blacklisted my number from rptd attempts to talk sense.

Who was it then? I wish to buy you a coffee.

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Incredible! A man was allowed to speak on Jeremy Vine who was both informed and cogent today.

Amongst other gems that he got across were:

- that greece's debt were created out of thin air and so who cares if they default

- that the banks should be allowed to fail

- that if people lose their savings then it is the risk the take when they invest; "investments can go up or down"

- That the banks have lent to odious dictators in Africa and then used those loans as an excuse to pump out their mineral wealth, and this is no different to Greece

My god! Good sense on the Vine. I almost choked on my ciabatta. Not only that but he was from Tunbridge Wells too. For a moment I had a Tyler Durden moment, before realising that Jeremy Vine has almost certainly blacklisted my number from rptd attempts to talk sense.

Who was it then? I wish to buy you a coffee.

A member of GCHQ inserting a number of memes into the bottom end of the population.

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A member of GCHQ inserting a number of memes into the bottom end of the population.

sorry but were beyond that now. if you had any sense at all you would run to gold as fast as your pants will take you.

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That is one of the dumbest statements I have ever seen on this forum.

Of course savings in a bank are an investment.

Semantics.

Would you call £20 notes stuffed in a mattress in the bedroom an investment?

Most high street lose-ings acounts ARE NOT investments. It's just somewhere to store cash.

In my opinion an investment is where you convert cash to risk in the hope that at a later date you can convert back into cash with a higher value in real terms than when you started.

Most savings in a bank is just storing cash.

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Savings are not an investment.

savings in a bank are always...losings. you cant have both parties beat inflation, the banker AND you.

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savings in a bank are always...losings. you cant have both parties beat inflation, the banker AND OR you.

Small pendant type of correction

Great point btw.

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That is one of the dumbest statements I have ever seen on this forum.

Of course savings in a bank are an investment.

A little harsh, but i have thick skin. Will qualify statement.

My point was, savings are protected so the nominal value in the account is 'safe' up to (whatever limit is) Investments are a gamble and the value is not protected.

So staying with the OP and the part i quoted - no one should accept the loss of their basic cash savings. The government and all FSA regulated banking institutions agree with that.

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Yes, but if you use your 'savings' to 'invest'......

Agreed but stick to the OP. What you have spent time to post is like saying "Iraq didn't have any WMD" to then retort rather unhelpfully "Iraq didn't have WMD but if they did...."

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that greece's debt were created out of thin air and so who cares if they default

They are so desperate to distract the public that they are even letting MCLs ont he air now.

Savings are not an investment.
Savings in a piggy bank, no, saving in a bank, YES. You are paid interest as the bank get to invest your money. The interest is essentially payment for the risk you take of losing your "savings" if the bank screws it up.
That is one of the dumbest statements I have ever seen on this forum.

Of course savings in a bank are an investment.

Why else would you be paid a profit margin!

Some people assume that when they pay money into a bank, the bank puts it into a big Scrooge-Mc-Duck style money Silo and the somehow the ammount of money myseriously gets bigger. The same with pensions. Banks lend the money out at a higher interestr ate than they pay you, or, like pension funds, they invest the money in Shares, Commodities and MBSs.

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That is one of the dumbest statements I have ever seen on this forum.

Of course savings in a bank are an investment.

Savings in the bank are not an investment.

If there is any risk attached to them it needs to be fully disclosed. That way people can decide whether to use mattresses or bank accounts.

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Savings in the bank are not an investment.

If there is any risk attached to them it needs to be fully disclosed. That way people can decide whether to use mattresses or bank accounts.

If there is no risk attached to them then why is there such a thing as the FSCS?

The existence of such a scheme is an admission that your savings in the high street banks are at risk of vanishing into thin air one day.

After all, if there was no risk, then there would be no need for such a scheme!

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That is one of the dumbest statements I have ever seen on this forum.

Of course savings in a bank are an investment.

No, they're not.

£20K in a deposit a/c is one thing.

That same £20K used to buy shares, wine, art, one leg of a racehorse, is something else.

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No, they're not.

£20K in a deposit a/c is one thing.

That same £20K used to buy shares, wine, art, one leg of a racehorse, is something else.

++1

with the OPs misguided belief about what savings are (they are for rainy days not a punt on a risky venture) - is it any wonder that noone believes in saving any more - debt is wealth :(

Edited by olliegog

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++1

with the OPs misguided belief about what savings are (they are for rainy days not a punt on a risky venture) - is it any wonder that noone believes in saving any more - debt is wealth :(

i dont often find i get confused on here i usually get clued up on matters by savy investors economists, could somebody please clarify this,

ive stopped short of drawing all my house fund out of the bank a few times this year already with the state of things,.

but today the alarm bells rang, the radio on site every hour informing the sheeple how bad the economy is and how it directly and indirectly affects us

now ive found since being here this forum tells it like it is a good few months or more befor it goes to the masses.

what to do what to do convert to gold or hollow the matress out.

ive always beleived my savings to be in the bank but i think youd be a little nieve to think your money is not being gambled on the big fruit machine

the garuntee letters on 50k or whatever it is, i all of a sudden started getting these reminders of that cover every month this year and it was with the tsb,

i switched to ing who have been bought out by capital one, i sumise it will be safer thier they for sure have more money having been making it out of thin air for so long as a credit card company.

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That sounds more like a safety deposit box than a bank savings account to me.

Well, you at least get some interest on your savings with most accounts but as the majority offer a rate less than half that of inflation, the difference is not as great as it was.

You'd better hope that the much promised (by some) deflation gets its finger out and starts "comething" double quick.

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the garuntee letters on 50k or whatever it is, i all of a sudden started getting these reminders of that cover every month this year and it was with the tsb,i switched to ing who have been bought out by capital one, i sumise it will be safer thier they for sure have more money having been making it out of thin air for so long as a credit card company.

Isn't it £85K now? Spread it around if you've got more, but check first that more than one of the banks don't fall under the same umbrella. Very hard to be sure if you don't check, e.g. with:

http://www.moneysavingexpert.com/savings/safe-savings#whatcounts

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Oh my! Injin will have a field day with this thread! :lol:

People think the bank look after their savings. They also know that banks give interest on their savings. Do they wonder how the interest is funded? Do they not realise that banks extend credit on their behalf, which will destroy their savings if said debtors default? For some reason, no (for the vast majority of people).

When you deposit money at the bank, you're swapping your money for a promise that they will return it. It becomes the bank's money at the point of deposit. The bank invests it as they see fit and then give you a cut.

Leaving aside the intricacies of fractional reserve banking, the bottom line is - there is always a risk that you won't get your money back.

Up to the insured limit (£85k, IIRC), the government will ensure you get your money back. Depending on how many accounts there are with much more than £85k*, much of this may come from the printing press in the event of multiple bank failures. Debased money is worth less, but you will feel like you have got your money back.

The only safe government** money is in notes/coins. These can be stored in safety deposit boxes, under the mattress, in a safe or wherever. Because of the government regulations (EDIT: giving a false sense of security), people haven't requested non-lending banks to deposit money. As the banks make loads of profit as lending banks, they're not too interested in providing this service either. If you remove the deposit guarantees and explain the risks though, I'm certain plenty would demand a non-lending bank service!

* If they default on large accounts, they should have more money to pay for the small accounts. If there are few large accounts, then there will be little to plunder.

** Arguably, no government money is safe, as they can debase it through printing.

edit: extra bits

Edited by Traktion

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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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