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Topic History of: Stock Market Jitters
Max. showing the last 5 posts - (Last post first)
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Barney |
Recently - meaning the last 15 years or so.
And with the inevitable depression coming our way, there will be many more failures of financial institutions.
Particularly if the property market - property often being a bank's principal security for loans - doesn't quickly regenerate.
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Jo |
Barney wrote:
Bank failures have been common recently.
Really? Which ones? I haven't been aware of any in the UK since the 2008/2009 financial crisis, let alone of them being common since then. |
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Barney |
Bank failures have been common recently.
So it's important to be cognizant of the £85,000 guarantee limit.
Although banks are hardly the place for cash at the moment - with shares currently at a very low ebb.
Opportunities are all around us.
But the trick is to identify which sector will recover the fastest!
Will it be leisure, retail or something like oil...
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Jo |
There will no doubt be people who can take advantage of this situation. What I'm concerned about most is the economic crisis developing into a financial one, e.g. if lots of companies/individuals default on their loans, and banks collapsing. After a run-in with a bogus financial adviser several years ago, I have kept most of my savings in bank accounts, most with one bank, and would get only a small fraction of it back if the bank collapsed and there was a bail-in and confiscation of depositors' savings, something that has apparently been an EU-wide rule (and rule in the UK and other countries) since 2014. Under the rule, savings above 85,000 pounds/100,000 euros per financial institution are forfeit. It was already done in Cyprus in 2013, when depositors experienced huge losses, billions, when banks were bailed in. I had always thought the biggest problem with keeping money in the bank was just not getting a good return and the attrition of inflation rather than the existence of the bank possibly being at risk and threatening one's savings. |
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Barney |
GDP is expected to shrink by 14% in 2020 - beaten only in 1706, just after the Bank of England was founded.
The prediction is for a Q2 contraction of 25% - unheard of in our history, and most of the world's.
Our options are limited to borrowing, taxation and spending cuts - and likely to be a combination of all three.
Brexit has changed too - as most of Europe is suffering also. And it may not be the opportune time to complete our withdrawal.
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