Someone wrote on this forum a few weeks ago that the Icelandic Banks were experiencing problems.On the strength of that I took our savings out and put them into UK institutions.
You are guaranteed up to 50 grand savings under their UK banking licence. People who took out less than that made the situation worse - as with Northern Rock. Everyone blames governments and bankers, but most of this mess is the fault of private individuals either borrowing more than they can pay back or panicking when they are completely 100% unaffected.
Mortimercian - that's all very well but when the only information you have is from the media, the money is your savings, you are retired and non earning and therefore have no chance of replacing those savings then I defy you or anyone else not to "panic". In fact I wouldn't call it panicking rather than looking after ones self rather than the system that is serving us so poorly.
Council tax possibly to rise though in some places as local authorities invested in Icelandic banks due to their 15% interest rates, I'm not sure you can blame savers for the demise of the icelandic system.
Sorry for being dumb but where has all this money gone ?? It can go into thin air. Its like when Elton John asked the owners of Watford where did the premiership money go to ?
[cite]Posted By: lancashire lad[/cite]Mortimercian - that's all very well but when the only information you have is from the media, the money is your savings, you are retired and non earning and therefore have no chance of replacing those savings then I defy you or anyone else not to "panic". In fact I wouldn't call it panicking rather than looking after ones self rather than the system that is serving us so poorly.
Have to agree with you there mate. If I had been in the same position I'd have done what you did.
There's no way I'd risk my savings just to help prop up a financial institution.
I think its something to do with being allowed to lend money you don't have, even by a fraction of percent, once the money backing that lending is pulled out, crash bang and down it all comes.
But how do you guys feel about all of us taxpayers underwriting a foreign governments guaranatee (first 20k?) which was reiterated a few days ago and has now been reneged on. Why should British money be used to bail out a foreign treasury?
[cite]Posted By: lancashire lad[/cite]Mortimercian - that's all very well but when the only information you have is from the media, the money is your savings, you are retired and non earning and therefore have no chance of replacing those savings then I defy you or anyone else not to "panic". In fact I wouldn't call it panicking rather than looking after ones self rather than the system that is serving us so poorly.
You are very wrong, sorry.
If people are getting their information from the media then there is one rock solid fact that they should be aware of: the goverment underwrite up to £50k. If people have more than this in a single institution then they are correct and sensible to move anything above that out to protect their investment. If it is less then they are, frankly, ignorant people that have made the whole thing worse for everyone. The system hasn't served us poorly - it's pure selfish stupidity that's driving this. I don't mind someone looking after themselves, but if them "looking after themselves" doesn't reduce their risk one iota and makes things worse for everyone else then you are blaming a "system" because it's easier than point the finger at the stupid.
I've had this conversation with my old ma, too. She didn't get it either and has contributed to the whole cluster and cost herself money by shuttling her money around pointlessly. Oddly she thinks that she knows better than me on these matters.
[cite]Posted By: lancashire lad[/cite]Mortimercian - that's all very well but when the only information you have is from the media, the money is your savings, you are retired and non earning and therefore have no chance of replacing those savings then I defy you or anyone else not to "panic". In fact I wouldn't call it panicking rather than looking after ones self rather than the system that is serving us so poorly.
You are very wrong, sorry.
If people are getting their information from the media then there is one rock solid fact that they should be aware of: the goverment underwrite up to £50k. If people have more than this in a single institution then they are correct and sensible to move anything above that out to protect their investment. If it is less then they are, frankly, ignorant people that have made the whole thing worse for everyone. The system hasn't served us poorly - it's pure selfish stupidity that's driving this. I don't mind someone looking after themselves, but if them "looking after themselves" doesn't reduce their risk one iota and makes things worse for everyone else then you are blaming a "system" because it's easier than point the finger at the stupid.
I've had this conversation with my old ma, too. She didn't get it either and has contributed to the whole cluster and cost herself money by shuttling her money around pointlessly. Oddly she thinks that she knows better than me on these matters.
What you say is correct and fine in theory.
Let's look at the reality though. LL is retired and loses his dosh say, hypothetically £30k, which is his retirement nest egg. How long will it take for him to get reimbursed and what is he meant to live on in the interim?
Not strictly the same I know but a moratorium was put on the reclaiming of unfair penalty bank charges in July '07. The Courts have ruled the charges are unfair yet people still aren't allowed to get their money back and the banks still impose penalty charges!!
LL acted absolutely properly when you look at how the real world works.
[cite]Posted By: lancashire lad[/cite]Mortimercian - that's all very well but when the only information you have is from the media, the money is your savings, you are retired and non earning and therefore have no chance of replacing those savings then I defy you or anyone else not to "panic". In fact I wouldn't call it panicking rather than looking after ones self rather than the system that is serving us so poorly.
[quote][cite]Posted By: Mortimerician[/cite][quote][cite]Posted By: lancashire lad[/cite]Mortimercian - that's all very well but when the only information you have is from the media, the money is your savings, you are retired and non earning and therefore have no chance of replacing those savings then I defy you or anyone else not to "panic". In fact I wouldn't call it panicking rather than looking after ones self rather than the system that is serving us so poorly.[/quote]
You are very wrong, sorry.
If people are getting their information from the media then there is one rock solid fact that they should be aware of: the goverment underwrite up to £50k. If people have more than this in a single institution then they are correct and sensible to move anything above that out to protect their investment. If it is less then they are, frankly, ignorant people that have made the whole thing worse for everyone. The system hasn't served us poorly - it's pure selfish stupidity that's driving this. I don't mind someone looking after themselves, but if them "looking after themselves" doesn't reduce their risk one iota and makes things worse for everyone else then you are blaming a "system" because it's easier than point the finger at the stupid.
I've had this conversation with my old ma, too. She didn't get it either and has contributed to the whole cluster and cost herself money by shuttling her money around pointlessly. Oddly she thinks that she knows better than me on these matters.[/quote]
That is garbage though. Icesave savers only had from £16,500 - £35,000 protected by the UK Govt (up until about 24 hours before they went pop when it was put up to £50K by which time many people would have switched). The Icelandic Govt guaranteed the first £16,500 and have since turned round and put 2 fingers up to every one outside Iceland. The fact that the UK treasury has since stepped in and offered to cover this element too was never clear but what was clear was that the Icelandic Govt would never honor their guarantee as they simply could not afford to whether they wanted to or not. As such most people with less than £50K in there would have been very sensible to take their money out. Especially given the bank was only 63% self funded and relised on the money markets for the rest, which given that they were downgraded to CCC by fitch a day or two before their collapse meant that they were going down the tube no matter what people did with their savings as no other insitution woul dhave lent to them!
I'm no expert but surely anyone putting their money in an overseas bank in a country that was having the difficulties they were having is taking a big risk - 15% interest rates, big inflation, etc and must have been either incompetent or motivated by greed (too good to be true high returns)
[cite]Posted By: razil[/cite]I'm no expert but surely anyone putting their money in an overseas bank in a country that was having the difficulties they were having is taking a big risk - 15% interest rates, big inflation, etc and must have been either incompetent or motivated by greed (too good to be true high returns)
Yes, you are no expert - evidently! Hindsight is a wonderful thing.
OK, at the time money was withdrawn 35k was protected. He's contributed to the misery of others and is blaming third parties for it. Pulling me up on the 50k is semantics (and irrelevant it was 50k when they went tits up) - but I SAID CLEARLY whatever the limit was at the time. I'll try to go slower.
If LL desperately needed some of that cash to live on, then fine he should have taken what he needed to live on and left the balance.
What gets on my taters so much is that he's sitting there blaming the system and actually it's people like him that have put other people like him in the shit, when in fact he probably never needed to in the first place. Some family that had more than 50k and sat tight will have lost a good portion of their nest egg because of this sort of thing.
I've got nothing against blaming the system for all your faults and I've nothing against idiotic ignorance, I just think that you have to pick one or the other and accept that your own selfish actions are f**king some other poor soul. Personally I'm not happy doing that (although I'm totally confident that I'll make a mint out of this whole caper simply by keeping my nut screwed on).
[cite]Posted By: Mortimerician[/cite]Some family that had more than 50k and sat tight will have lost a good portion of their nest egg because of this sort of thing.
[cite]Posted By: Off_it[/cite][cite]Posted By: razil[/cite]I'm no expert but surely anyone putting their money in an overseas bank in a country that was having the difficulties they were having is taking a big risk - 15% interest rates, big inflation, etc and must have been either incompetent or motivated by greed (too good to be true high returns)
Yes, you are no expert - evidently! Hindsight is a wonderful thing.[/quote
Comments
(I would have done the same)
You are guaranteed up to 50 grand savings under their UK banking licence. People who took out less than that made the situation worse - as with Northern Rock. Everyone blames governments and bankers, but most of this mess is the fault of private individuals either borrowing more than they can pay back or panicking when they are completely 100% unaffected.
http://news.bbc.co.uk/1/hi/business/7658908.stm
http://news.bbc.co.uk/1/hi/uk/7660741.stm
can't see my one on the list though.
Have to agree with you there mate. If I had been in the same position I'd have done what you did.
There's no way I'd risk my savings just to help prop up a financial institution.
I am absolutely gobsmacked at this. Why don't they invest the money in the country they are in beggars belief.
Sackt he lot of em. I understand Investing the money I do but do it in England.
You are very wrong, sorry.
If people are getting their information from the media then there is one rock solid fact that they should be aware of: the goverment underwrite up to £50k. If people have more than this in a single institution then they are correct and sensible to move anything above that out to protect their investment. If it is less then they are, frankly, ignorant people that have made the whole thing worse for everyone. The system hasn't served us poorly - it's pure selfish stupidity that's driving this. I don't mind someone looking after themselves, but if them "looking after themselves" doesn't reduce their risk one iota and makes things worse for everyone else then you are blaming a "system" because it's easier than point the finger at the stupid.
I've had this conversation with my old ma, too. She didn't get it either and has contributed to the whole cluster and cost herself money by shuttling her money around pointlessly. Oddly she thinks that she knows better than me on these matters.
What you say is correct and fine in theory.
Let's look at the reality though. LL is retired and loses his dosh say, hypothetically £30k, which is his retirement nest egg. How long will it take for him to get reimbursed and what is he meant to live on in the interim?
Not strictly the same I know but a moratorium was put on the reclaiming of unfair penalty bank charges in July '07. The Courts have ruled the charges are unfair yet people still aren't allowed to get their money back and the banks still impose penalty charges!!
LL acted absolutely properly when you look at how the real world works.
Oh dear
You are very wrong, sorry.
If people are getting their information from the media then there is one rock solid fact that they should be aware of: the goverment underwrite up to £50k. If people have more than this in a single institution then they are correct and sensible to move anything above that out to protect their investment. If it is less then they are, frankly, ignorant people that have made the whole thing worse for everyone. The system hasn't served us poorly - it's pure selfish stupidity that's driving this. I don't mind someone looking after themselves, but if them "looking after themselves" doesn't reduce their risk one iota and makes things worse for everyone else then you are blaming a "system" because it's easier than point the finger at the stupid.
I've had this conversation with my old ma, too. She didn't get it either and has contributed to the whole cluster and cost herself money by shuttling her money around pointlessly. Oddly she thinks that she knows better than me on these matters.[/quote]
That is garbage though. Icesave savers only had from £16,500 - £35,000 protected by the UK Govt (up until about 24 hours before they went pop when it was put up to £50K by which time many people would have switched). The Icelandic Govt guaranteed the first £16,500 and have since turned round and put 2 fingers up to every one outside Iceland. The fact that the UK treasury has since stepped in and offered to cover this element too was never clear but what was clear was that the Icelandic Govt would never honor their guarantee as they simply could not afford to whether they wanted to or not. As such most people with less than £50K in there would have been very sensible to take their money out. Especially given the bank was only 63% self funded and relised on the money markets for the rest, which given that they were downgraded to CCC by fitch a day or two before their collapse meant that they were going down the tube no matter what people did with their savings as no other insitution woul dhave lent to them!
Yes, you are no expert - evidently! Hindsight is a wonderful thing.
OK, at the time money was withdrawn 35k was protected. He's contributed to the misery of others and is blaming third parties for it. Pulling me up on the 50k is semantics (and irrelevant it was 50k when they went tits up) - but I SAID CLEARLY whatever the limit was at the time. I'll try to go slower.
If LL desperately needed some of that cash to live on, then fine he should have taken what he needed to live on and left the balance.
What gets on my taters so much is that he's sitting there blaming the system and actually it's people like him that have put other people like him in the shit, when in fact he probably never needed to in the first place. Some family that had more than 50k and sat tight will have lost a good portion of their nest egg because of this sort of thing.
I've got nothing against blaming the system for all your faults and I've nothing against idiotic ignorance, I just think that you have to pick one or the other and accept that your own selfish actions are f**king some other poor soul. Personally I'm not happy doing that (although I'm totally confident that I'll make a mint out of this whole caper simply by keeping my nut screwed on).
Yet LL is the stupid one???
Yes, you are no expert - evidently! Hindsight is a wonderful thing.[/quote
nerr...
:P