Financial Fall-Out

Discussion in 'The Lounge - Off Topic' started by Rover977, Sep 23, 2008.

  1. postman

    postman Byte Poster

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    Governments around the world insure peoples savings so the majority of people will lose nothing (€100,000 in Ireland and £35,000 in the UK - per person).
     
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  2. Rover977

    Rover977 Byte Poster

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    I appreciate the need for a well functioning financial system, and there is the possibility that the MBS's (Mortgage Based Securities) that will be purchased with the $700billion will in the future become saleable again, and even make a profit for the tax-payer in the long run, once the financial system has re-stabilised. This would obviously be a desirable scenario. Lets hope it works out that way.

    I think what angers a lot of people is that the banks and finance companies are just a little bit TOO quick to foreclose on people. If they were more willing to re-negotiate terms so business owners could stay in business throughout a difficult period, or home-owners experiencing difficulties could stay in their homes rather than being re-possessed, then they would probably get more sympathy from the public when encountering difficulties themselves.

    As regards ordinary savers losing out I would definitely not want to see that happen - this is the sort of thing the governments of the various countries are justified in spending money to avoid.
     
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  3. Bambino1506

    Bambino1506 Megabyte Poster

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    Bradford and Bingley (UK's 8th largest mortgage lender I believe) was close to going tit's up as shares slumped and customers rushed to withdraw savings, is now being nationalised.


    UK taxpayers are footing the bill for another sub-prime mess then, great.
     
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  4. wizard

    wizard Petabyte Poster

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    I don't think they are going to go tits up, I'm sure that it'll be nationalised like Northern Rock was.
     
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  5. Bambino1506

    Bambino1506 Megabyte Poster

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    Reread my post, thats exactly what I said.
     
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  6. wizard

    wizard Petabyte Poster

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    Sorry just skimmed it, concentrating on watching the Singapore GP :D
     
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  7. Bambino1506

    Bambino1506 Megabyte Poster

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    No worries dude :biggrin
     
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  8. mickaveli2001

    mickaveli2001 Byte Poster

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    I've always believe McCain will be next the next president of United States, but even he wont control the economy if he is, and it's only going to get worse. I think here in the UK, the FSA will need a good shake up, and bad lending has been one of many primary factors of why we're in this situation. I mean is it good for someone to have a mortgage they can't afford to pay back? or even if they sort some of that out, the fact that every ad on TV starts off with "having trobule finding a loan?" If you have trouble getting acceptance from major banks in getting a loan then there's a good reason, but there's so many companies available that were giving people loans that shouldn't have them in the first place. Unemployment rate will definitly increase as housing market falls and employee's of Barrat, Macfarlane homes and so on are paid off, or other skill trade workers have less work or have to work for less money. I have no idea how it will work, but the Iraq war certaintly doesn't help matters, the amount of billions spent, and that will continue getting spent will eventually lead to more debt. It was said by someone around 5 years ago that the US economy will collapse within a decade
     
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  9. Rover977

    Rover977 Byte Poster

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    I have quietly been watching B&B over these past few weeks, wondering whether to withdraw my ISA accounts with them. I have quite a bit invested and I am wondering if I should close down the accounts and put them in a mutual building society like Skipton/Yorkshire/Nationwide/Dunfermline or in the NSI.

    Some people say your money is safe as the govt will 'nationalise' the failing banks - but what if another bank goes, then another - they are all in the same market after all.

    I ASSUME 'mutuals' are safe - but there are no share prices to check with these, unlike with the banks, so its harder to know what state they are in. I was surprised that Skipton raises as much as 34% of its mortgage funds from borrowings from the money markets, so they are not totally in the clear either.
     
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  10. Rover977

    Rover977 Byte Poster

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    I was amazed to speak to a plumber recently who had been laid off and could not find work. He had to go to Glasgow (80 miles away) to get a job.

    It wasn't that long ago I recall seeing programs on TV about how much money could be made by plumbers due to the shortage. Professional people were giving up careers to train as plumbers.

    If the USA economy collapses I think we'll all be in trouble.
     
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  11. Bambino1506

    Bambino1506 Megabyte Poster

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    Most financial people seem to be saying nationwide are one of the safest. If I had any savings I would be moving them there tbh.

    We've got home insurance (contents) with B&B and I am wondering whether I should look into taking the policy elsewhere.
     
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  12. wizard

    wizard Petabyte Poster

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    I would consult an Idependent Financial Advisor before making any decision on what to with the money you have invested.
     
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  13. sunn

    sunn Gigabyte Poster

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    I get your point postman, but £35,000 (~$74,000 CDN) isn't a lot especially if you have considerably more saved. Anyway, I'm not saying the bailout is right (I don't really know) but there's more than just one side to the story. :blink
     
  14. dmarsh
    Honorary Member 500 Likes Award

    dmarsh Petabyte Poster

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    What if you have a business account ? The £30k limit suddenly seems rather ridiculous, there was a proposal to increase it to £100k, I'n not sure whats happened to this. Whats more you are only covered upto £30k per banking organisation, not per account. With many banks being owned by the same parent company its possible you could have multiple accounts and still lose a significant amount.

    New money laundering rules make it harder to open accounts, but now people have to struggle to open multiple accounts here there and everywhere. I'd rather be concentrating on other things than a bizare money shuffle mandated by a crap banking system poorly regulated by the FSA and government.
     

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