Money in the bank? Shares?

[joe-90]

Just to add to Joe's point, if you've got money sit on it and wait for the market to crash, you'll be able to buy property at a fraction of the value it was before the crash. When the market recovers, and it will, the whole principle of the stock market (which is basically all we have left to drive our economy), is designed around the process of value fluctuation, your property portfolio will also start to rise in value. The economy will start to recover and so the cycle continues.

There are those that will say that it is morally wrong to buy property at that point but those 'investors' are the ones who are restarting the economy. If NO ONE bought anything, then we'd have no economy.

Where are you going to keep this money? When the banks fail - it'll go down the pan. Money will be worth the paper it's printed on - it won't buy you a house. Only a house will be worth a house.

 

[joe-90]

Was it an accident that Mervyn King came on the TV and said that we are facing a crisis at least as bad as the 1930's depression? Maybe even worse!
I doubt it. He was told to get out there and prepare the country for the 'perfect financial storm'. He knows there is NO SOLUTION. Twelve banks downgraded overnight - including those owned by the taxpayer.

Is that Mervyn King's idea of 'talking up the economy'? Telling the world that the UK is bust? Would you lend money to the UK? Isn't it time to simply stop the borrowing and live within our means - however bad that might be? Debts don't get paid by borrowing more and more money. It can't go on indefinitely - anyone can see that much. So when are we going to start paying it back? We need to stop borrowing before we can start paying - that's obvious.

However, the big problem is that to pay it back we need to export goods and services. The problem with that is that most of our customers are in Europe - and Europe is in a state of collapse. A Europe that is bust CANNOT buy our goods so our economy will NEVER improve - only get worse.
No need for an economics degree to work that one out.
The bad times haven't even begun yet. Wait for the riots on the streets and the looting to resurge.
We've lived in an oil fuelled bubble for the past 70 years - but it's just about bust now. It won't be pretty - and we may not all survive it - at least financially. Savings, pensions, shares etc will be lost forever.

Good luck - you are going to need it.

Joe-90.

 

[enyam]

The sun as still risen this morning though Joe.

 

[joe-90]

But it will soon look out onto a whole different world.

 

[joe-90]

The rating agency Moody's say they've down-rated British banks because it has concerns that the government won't (read can't) bail them out this time.

Smell the coffee guys. When they crash next (as they surely must) the ratings agency doubt that the government can save them - so anything you've got as savings will be in doubt. You may lose the lot. If you think I'm wrong - argue with Moody's - not me. Too big to fail? Nothings too big when you consider a whole country can fall.

Always wondered what Mick Moody did for a living.

 

[Nige F]

[The market HAS crashed, and is in recession, and has been for a while. Growth markets of 0.1% means that there is no growth. That number meant someone farted.

The latest injection means that a pound is worth 10p, thus devaluing the economy. Hence million dollar notes being worth pence.

It`s worth 5 p. or a shilling pre decimal £1 will buy you pretty much what 1/- would in the 60`s .- extrapolate that to the min. wage now and you`re no better off - BUT in the 60`s you had a decent house to live in ( the ones that Joe hates so much ) and the best bit - loads of work and the prospect of bettering your life by grafting and living frugally @ the same time That`s what my family did and those life lessons are their best legacy to me . But then we were always simple country folk

 

[anobium]

The rating agency Moody's say they've down-rated British banks because it has concerns that the government won't (read can't) bail them out this time.

Smell the coffee guys. When they crash next (as they surely must) the ratings agency doubt that the government can save them - so anything you've got as savings will be in doubt. You may lose the lot. If you think I'm wrong - argue with Moody's - not me. Too big to fail? Nothings too big when you consider a whole country can fall.

Always wondered what Mick Moody did for a living.

Common Joe, Moodys didnt get it right when Lehmans went bust, why should we believe them this time.
On the 17th March 2008 Moodys affirmed Lehmans AI rating and said the outlook was stable.
6 months later Lehmans filed for bankruptcy.
The blind leading the blind.

 

[RedHerring2]

Moody's have been suspected of behaving dishonestly in the past.
As a, basically American organisation, who's to say that it isn't behaving dishonorably again?
As mentioned before, it is to the US's benefit that the Euro and the Pound are less desirable than the Dollar.

 

[ABCwarrior]

I agree with Joe too- if the whole system collapses I'll still have a house, if they then try and take that from me through no fault of my own I'll burn it down making sure the insurance has lapsed. No one will have it....
Lets face it our economy is totally screwed. Money used to represent value, it now represents debt.
This is what happens when successive governments allow private banks to issue the nations currency. All these chinless toff politicians are on the bankers payrolls, just look at Blairs cushy "job" at JP Morgan when he got off the sinking ship. All just keep blaming the previous governments and making it sound like a political problem, the problem is the private banks that have the whole world by the nuts- except those "axis of evil" ones, you know, the ones that don't play the "globalisation is good" game, and control their currencies keeping the World Bank and IMF at arms length.
If we could just tell them to F off and wipe the slate clean, then keep them out for good. Usury used to be forbidden by most religions. Money lenders and Goldsmiths eh? Richest F'ers on the planet and do nothing but enslave the rest of us.

Watch this, you'll be amazed if the football and soaps don't distract you first....

http://www.youtube.com/watch?v=JXt1cayx0hs

 

[snico]

The rating agency Moody's say they've down-rated British banks because it has concerns that the government won't (read can't) bail them out this time.

Smell the coffee guys. When they crash next (as they surely must) the ratings agency doubt that the government can save them - so anything you've got as savings will be in doubt. You may lose the lot. If you think I'm wrong - argue with Moody's - not me. Too big to fail? Nothings too big when you consider a whole country can fall.

Always wondered what Mick Moody did for a living.

Moodys have been wrong quite a few times. They have not downgraded them because the fear a collapse, they have downgraded them because they think the government wont help them out like they have in the past.

The major banks and building societies are doing fine, apart from the RBS who will prob end up being nationalised. Dont believe everything these credit reating agencys say, majority of the time they actually get it wrong.

 

[joe-90]

You just aren't getting it. The down-rated banks are exposed by their lending to Greece/Ireland etc and the other collapsing states. They won't be bailed out because the UK is bust. When they collapse this time they'll take your savings with them.

 

[Brigadier]

I do get pee'd off when union leaders like Bob Crow (on £150k, btw), call for strike action unless "we invest in the public services" during times of austerity.

So, we've got no money, so let's ringfence public sector jobs.
And, if and when we do have money, there'll be no need to cut public sector jobs.

They might as well just state they want guaranteed employment from 18-60, with a decent pension at the end, or they're all out on strike.

 

[securespark]

Strike? I'm out! Light me a brassiere.

Or should that be brazier?

 

[Blasphemous]

I look forward to your statement on how/why the whole world economy didn't go down the pan Joe. If I am wrong and you are right, there will no internet for you to respond but at least we'll all know.

 

[joe-90]

It's been artificially propped up. It's not been sorted because it isn't sortable.

The bottom line has nothing to do with greed but the price of oil.

When oil prices rise - the cost of everything rises which means people world-wide buy less.

It's only just begun.

Google Peak Oil if you are interested.