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Guest grumpy-old-man

another can of worms opened.

remember BOD, this one will 'run & run' :D

well at least we get to see the ending though. :o:ph34r:

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If there is a full-blown deflationary spiral - how do you best hold cash (without a counterpart owing you your money back)?

(Is anything real cash apart from holdalls full of bank notes.)

You want to put your money with the safest borrowers and you want the debt to be short term. So thats why the NSANDI is considered a pretty easy and convenient safe haven. If not you'd put it in 3-month government bonds.

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I think you have to grin and bear it Durch. The only option is to put the cash into 6 or more month fixed bonds but I am not sure whether that is a risky option or a sensible one right now. Instant access might be preferable in this climate.

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One other aspect worth considering is, if more retail banks see runs, keeping your ear to the ground as to which surviving retail banks are seeing the biggest increases in transfered in deposits. Whilst bank runs result in clear losers, there are also winning institutions who end up with a pleasent boost to capital as a result of their mates going tits up.

You want to put your money with the safest borrowers and you want the debt to be short term. So thats why the NSANDI is considered a pretty easy and convenient safe haven. If not you'd put it in 3-month government bonds.

You are my dad and I claim my £5... not that I'm opening an NS&I account on Monday and chucking an emergency £5k in it. No, not at all. Do I look worried after the Bear Sterns events. Ooh no. Hmmm, I wonder what that smell is...

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Crock.

They have already gone under and are now protected by treasury guarantee, 100% of deposit, well over the 30K or so you get in other banks.

As a bonus, the rates are good, they are pulling money out of mortgages, so shafting geared up 2005, 2006 and 2007 speculators coming up the the end of their term.

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If there is a full-blown deflationary spiral - how do you best hold cash (without a counterpart owing you your money back)?

(Is anything real cash apart from holdalls full of bank notes.)

I'd stick it in property if I were you.

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Maybe they'll have an anti-run if the SHTF - people queuing up to put it back in. :lol:

I think this is already happening. Funnily, once again moronic crash Gordon and co muck up big time. The other banks are needing cash bad, but with this daft set up, other banks are now being totally shafted.

But I guess, these other banks are not established in a Mew Labour heartland. Has there been any job cuts yet? They will probably redeploy the staff from mortgages to savings. . .

A disgrace. But it is nice to get something back from my taxes in the form of the interest and importantly at the moment, the increased security.

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:lol:

I know that's a joke. But for the people that think you are serious, remember, I'm asking about a hypothetical massive deflation. Only money for property will be cash in the end, worst case. Won't want to put it in at mortgage-inflated, 'old-prices' at the beginning. Some US property lost 90%+ in the 30s deflation. Japanese property lost 90% in their long, recent (ongoing?) deflation.

I was only half joking. I saw HPC's current favourite Grand Wizard of Economics, Vince Cable, on TV today saying the government should step in to stop repossessions and people being thrown out onto the streets. If repossessions rise I would expect to see greater pressure to do this. Fewer forced sales could mean smaller price falls.

On the other hand....

I wouldn't recommend this because of the obvious risks, but cold hard cash has got to be safest. If money is being vaporised left, right and centre you probably won't be worried by yield over the return of your money. If you have the cash at least you can move quickly to take advantage of any opportunities.

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I was only half joking. I saw HPC's current favourite Grand Wizard of Economics, Vince Cable, on TV today saying the government should step in to stop repossessions and people being thrown out onto the streets. If repossessions rise I would expect to see greater pressure to do this. Fewer forced sales could mean smaller price falls.

On the other hand....

I wouldn't recommend this because of the obvious risks, but cold hard cash has got to be safest. If money is being vaporised left, right and centre you probably won't be worried by yield over the return of your money. If you have the cash at least you can move quickly to take advantage of any opportunities.

If they did that then renters would want a bit of the action if they can't afford the rent.

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If they did that then renters would want a bit of the action if they can't afford the rent.

I can understand that. But in all things politcal, are there enough private renters who vote who could scare the politicians enough to help them ?

Edited by Minos

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Id put it into whichever vehicle gave you the highest long term rate.

if we do enter deflation, interest rates will drop to zero so you wont be able to get them then.

but a nice 30 year bond should get you through the downturn however long it is, and pay out a high yield.

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If there is a full-blown deflationary spiral - how do you best hold cash (without a counterpart owing you your money back)?

(Is anything real cash apart from holdalls full of bank notes.)

I don't really understand your worry. You just need to keep the notes in a relatively secure, sealed, dry environment.

Also don't read the financial and economic history of deflation, if you don't want to be surprised. wren

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Guest Skint Academic
Anyone under 35

Who also have a longer life expectancy than the baby boomers and who have been royally screwed over by Labour.

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Japanese property lost 90% in their long, recent (ongoing?) deflation.

Can you corroborate that figure? I've been wondering how far Japanese property slid, but have been unable to find any credible data.

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You may as well put this thread to bed. The central banks are openly converting turds into fiat currency.

It's already game, set and match on the inflation versus deflation debate.

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You may as well put this thread to bed. The central banks are openly converting turds into fiat currency.

It's already game, set and match on the inflation versus deflation debate.

You would think so but there is bound to be some contrarian nutter around here that has a differing view.

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You may as well put this thread to bed. The central banks are openly converting turds into fiat currency temporary liquidity.

Corrected for you.

It's already game, set and match on the inflation versus deflation debate.

Indeed: We have deflation, whilst suffering the long tail of past inflation.

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Indeed: We have deflation, whilst suffering the long tail of past inflation.

I did say there would be one, free speach rules supreme

Outstanding Timm Outstanding :lol::lol::lol:;)

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I did say there would be one, free speach rules supreme

Outstanding Timm Outstanding :lol::lol::lol:;)

Thank you.

:)

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We have deflation, whilst suffering the long tail of past inflation.

That's the most succinct of the explanations of the debate I've found so far. Excellent summary.

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i was thinking the same...Northern Rock is now the safest bank out there, rates look ok, so i'm opening an a/c next week.

and actually just browsing nsaandi.com, it actually looks really good. aside from the tax-free stuff (i recommend Premium Bonds), you can get up to 5% on the taxable products they offer, instant access and fully guaranteed by the Treasury. THAT'S where you are supposed to put your money.

And if you are one of the inflationistas (don't worry, you're all entitled to your wrong opinion), then you can get 1.35% + RPI tax free on index-linked stuff (2yr or 5yr bonds)...i assume though if you are real believers in inflation you already have your money in it :)

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Who also have a longer life expectancy than the baby boomers and who have been royally screwed over by Labour.

What's it got to do with boomers ? It's about people what are financially under water.

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  • 297 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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