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I R On Savings Have To Rise: V Is Are Skint

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http://www.ft.com/cms/s/3989c9e6-4ccb-11dc...00779fd2ac.html

Financial Times
Cash is even more desirable than ever
By Steve "Stephen" Lodge
Published: August 17 2007 15:39 | Last updated: August 17 2007 15:39
For those running scared of stock markets the good news is that savings rates are their highest in years.
And the latest credit market turmoil could push cash returns higher still
in the short term, say some experts.
“No strings” instant access internet accounts are now offering as much as 6.25 per cent, while one-year fixed-rate bonds are paying up to 6.72 per cent. These are the highest returns from cash since 2001 following the five base rate increases of the past year, says Moneyfacts.co.uk, which monitors saving rates.
But while many analysts believe that base rates could be at or close to their peak at 5.75 per cent,
difficulties for mortgage lenders in raising funds from wholesale markets could force them to improve savings rates further in a bid to bring in more money.

:)

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http://www.ft.com/cms/s/3989c9e6-4ccb-11dc...00779fd2ac.html
Financial Times
Cash is even more desirable than ever
By Steve "Stephen" Lodge
Published: August 17 2007 15:39 | Last updated: August 17 2007 15:39
For those running scared of stock markets the good news is that savings rates are their highest in years.
And the latest credit market turmoil could push cash returns higher still
in the short term, say some experts.
“No strings” instant access internet accounts are now offering as much as 6.25 per cent, while one-year fixed-rate bonds are paying up to 6.72 per cent. These are the highest returns from cash since 2001 following the five base rate increases of the past year, says Moneyfacts.co.uk, which monitors saving rates.
But while many analysts believe that base rates could be at or close to their peak at 5.75 per cent,
difficulties for mortgage lenders in raising funds from wholesale markets could force them to improve savings rates further in a bid to bring in more money.

:)

Precisely what I have just mentioned on another topic.This crisis has nothing to do with sub-prime in this country and everything to do with banks having lent money out they haven't got (no matter that they might be safely collateralised loans)and now the foreigners have got a bit twitchy.

Edited by crashmonitor

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Precisely what I have just mentioned on another topic.This crisis has nothing to do with sub-prime in this country and everything to do with banks having lent money out they haven't got (no matter that they might be safely collateralised loans)and now the foreigners have got a bit twitchy.

This is where our 10 trillion $ debt is:

http://web.worldbank.org/WBSITE/EXTERNAL/D...1805415,00.html

Our banking system is effectively worse than broke--10 trillion $ worse. The cheap money from Japan is getting called in due to risk aversion and a deteriorating trust in Gordon's miracle economy. Our banks have lent it to build our "60 trillion pounds worth of house prices" and all those funny money deals in the City where money appears from the air just because one company merges with another. There is a HUGE banking crisis about to hatch out and it may be related to the censorship of whatever the BoE were going to say this coming Monday.

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This is where our 10 trillion $ debt is:

http://web.worldbank.org/WBSITE/EXTERNAL/D...1805415,00.html

Our banking system is effectively worse than broke--10 trillion $ worse. The cheap money from Japan is getting called in due to risk aversion and a deteriorating trust in Gordon's miracle economy. Our banks have lent it to build our "60 trillion pounds worth of house prices" and all those funny money deals in the City where money appears from the air just because one company merges with another. There is a HUGE banking crisis about to hatch out and it may be related to the censorship of whatever the BoE were going to say this coming Monday.

most of that debt is mortgages, probably accounts for 5tril of that 10tril.

if banks stop lending on mortgages or make it harder, so the net effect is people are paying off their mortgage instead of MEWing more money out. That will contract the money supply and cause deflation!

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Guest Charlie The Tramp
But while many analysts believe that base rates could be at or close to their peak at 5.75 per cent, difficulties for mortgage lenders in raising funds from wholesale markets could force them to improve savings rates further in a bid to bring in more money.

My Bank appears to be on mission to get their Premier Savers to lock in for 6 months or more offering attractive returns.

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We should all withdraw our money on the same day and put the cash under the matress for a couple of weeks just for a giggle. :P

putting it with the nsandi will have the same effect, and at least its not as vulnerable as cash whilst being nearly as safe in terms of being defaulted on. Of coarse you'd have to live with the fact your supporting government spending habits.

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May well go back to how it was when we got our mortgage. You had to put a regular amount in a building society for 12 months before you could apply for a mortgage. In other words you had to save your deposit with them for a year first.

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I have a fair bit of cash with various Building Societies and am now begining to feel a little nervous about what they might be doing with it - and am wondering if I will ever see it again but short of putting the cash under a matress what is one to do ?

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I have a fair bit of cash with various Building Societies and am now begining to feel a little nervous about what they might be doing with it - and am wondering if I will ever see it again but short of putting the cash under a matress what is one to do ?

I have also been a little nervous and shifted 2/3rds of my STM funds from money markets accounts into FDIC insured short term CDs in the US. There were some articles out last week that said the big brokerage houses and banks had been playing with supposedly safe money market money in the derivatives markets and hadn't told anyone. MOst of my UK cash is with NW and my pension is in Scottish Widows and I can't touch that for a few more years!

For the UK might be best not to have too much with any single bank. Not sure if deposits are insured by the government here or not? IN the US you are insured up to $100k per account holder up to a max of $250k with any single bank.

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I have also been a little nervous and shifted 2/3rds of my STM funds from money markets accounts into FDIC insured short term CDs in the US. There were some articles out last week that said the big brokerage houses and banks had been playing with supposedly safe money market money in the derivatives markets and hadn't told anyone. MOst of my UK cash is with NW and my pension is in Scottish Widows and I can't touch that for a few more years!

For the UK might be best not to have too much with any single bank. Not sure if deposits are insured by the government here or not? IN the US you are insured up to $100k per account holder up to a max of $250k with any single bank.

100% of the first 2K and 90% of the next 33K, but can't understand how the FSA could bail out a large Bank from the levies it charges its members.Off the subject,I was wondering RB if that proverb really is from Isaiah or Realist bear.(haven't got a bible and can't google it up)If it was Isaiah it certainly was prophetic.

Edited by crashmonitor

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