| Which of you silly debt slaves..... on 15:24 - Sep 28 with 1032 views | solomon |
Would this be like northern rock all over again? People queuing up to get their money out of the banks? Wouldn’t that be catastrophic again? how would the masses be convinced it’s a good move? I’d bet it would be impossible to convince them otherwise? |  | |  |
| Which of you silly debt slaves..... on 16:32 - Sep 28 with 960 views | Pendejo |
| Which of you silly debt slaves..... on 15:24 - Sep 28 by solomon |
Would this be like northern rock all over again? People queuing up to get their money out of the banks? Wouldn’t that be catastrophic again? how would the masses be convinced it’s a good move? I’d bet it would be impossible to convince them otherwise? |
I believe that the Greeks passed a law preventing people from emptying their accounts just before applying some sort of stringent rate, one of my employees used to moan about it all the time. |  |
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| Which of you silly debt slaves..... on 16:45 - Sep 28 with 932 views | MonkeyAlan |
| Which of you silly debt slaves..... on 16:32 - Sep 28 by Pendejo |
I believe that the Greeks passed a law preventing people from emptying their accounts just before applying some sort of stringent rate, one of my employees used to moan about it all the time. |
No one can stop you getting your own money out to say, buy a car? Pay a lump sum of your mortgage etc That's what savings are for, to save for something! A holiday, a new kitchen. Not everyone wants the banks loans. I would say they would have a problem even with new laws. Because if l wanted money out to buy a car l blo0dy well would. If l trashed my car tomorrow and knew l had the money to spend a few thousand on a new one, l can't see how they could refuse you using your own money. |  | | |
| Which of you silly debt slaves..... on 16:50 - Sep 28 with 927 views | StokieBlue |
| Which of you silly debt slaves..... on 15:24 - Sep 28 by solomon |
Would this be like northern rock all over again? People queuing up to get their money out of the banks? Wouldn’t that be catastrophic again? how would the masses be convinced it’s a good move? I’d bet it would be impossible to convince them otherwise? |
Why would people do that and where would they put the money when they had it?
Negative rates on savings would mean that you pay the bank to keep your money secure and risk-free (up to certain limits).
Negative rates on mortgages are interesting. It's down to whether the banks want to pay to secure their money essentially risk-free (government bonds) or lend it out with the risks associated with that at either a flat or slightly negative interest rate.
SB |  |
| Avatar - IC410 - Tadpoles Nebula |
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| Which of you silly debt slaves..... on 17:16 - Sep 28 with 883 views | BanksterDebtSlave |
| Which of you silly debt slaves..... on 16:50 - Sep 28 by StokieBlue |
Why would people do that and where would they put the money when they had it?
Negative rates on savings would mean that you pay the bank to keep your money secure and risk-free (up to certain limits).
Negative rates on mortgages are interesting. It's down to whether the banks want to pay to secure their money essentially risk-free (government bonds) or lend it out with the risks associated with that at either a flat or slightly negative interest rate.
SB |
If I have it right Stokie low/negative interest rates are meant to stimulate the economy and thus increase inflation. Inflation is needed to inflate away the massive level of government borrowing post financial crash/Covid. But can inflation occur without a growing economy/consumer confidence?And if it can this will effectively destroy the value of savings .
And/or...debt deflation!
https://en.m.wikipedia.org/wiki/Debt_deflation
Maybe all of the above....my authoritive sources suggest our economy is screwed but genuinely interested in your take on things. Gardening is more my thing!
Edit....surely the whole point of negative interest on savings would be to stimulate spending...if the confidence to spend is not there then surely deflation would follow. So is this the last throw of the dice before deflation? [Post edited 28 Sep 2020 17:20]
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| Which of you silly debt slaves..... on 17:23 - Sep 28 with 864 views | hampstead_blue |
Invest in shares. Cash is useful but has very limited benefits. |  |
| Assumption is to make an ass out of you and me.
Those who assume they know you, when they don't are just guessing.
Those who assume and insist they know are daft and in denial.
Those who assume, insist, and deny the truth are plain stupid.
Those who assume, insist, deny the truth and tell YOU they know you (when they don't) have an IQ in the range of 35-49.
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| Which of you silly debt slaves..... on 17:27 - Sep 28 with 849 views | StokieBlue |
| Which of you silly debt slaves..... on 17:23 - Sep 28 by hampstead_blue |
Invest in shares. Cash is useful but has very limited benefits. |
Not exactly a risk-free strategy.
SB | |
| Avatar - IC410 - Tadpoles Nebula |
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| Which of you silly debt slaves..... on 17:58 - Sep 28 with 810 views | J2BLUE |
| Which of you silly debt slaves..... on 16:50 - Sep 28 by StokieBlue |
Why would people do that and where would they put the money when they had it?
Negative rates on savings would mean that you pay the bank to keep your money secure and risk-free (up to certain limits).
Negative rates on mortgages are interesting. It's down to whether the banks want to pay to secure their money essentially risk-free (government bonds) or lend it out with the risks associated with that at either a flat or slightly negative interest rate.
SB |
IIRC Japan did something similar and sales of safes went up massively. |  |
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| Which of you silly debt slaves..... on 17:58 - Sep 28 with 809 views | Kropotkin123 |
Yeah, it is bit of a slap in the face BDS. Massive amount of asset protection from governments all around the world at the moment, which is a must or huge numbers of people will have issues.
Problem with this is in the long term assets, such as housing, won't get the corrections they need. Leading to greater inequality between those that have assets and those that don't.
As someone who is saving, I've gradually been moving more and more of my money into dividend investments. Lots of safe companies paying 3-4% on dividends. In the long term, I'd expect some minor growth too. I have a very small holding in a couple of growth stocks too.
*Recommending it depends on the liquidity of savings though. Stock market can go up and down and all that normal advice. [Post edited 28 Sep 2020 18:01]
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| Which of you silly debt slaves..... on 18:07 - Sep 28 with 784 views | Kropotkin123 |
| Which of you silly debt slaves..... on 17:27 - Sep 28 by StokieBlue |
Not exactly a risk-free strategy.
SB |
True, but you a risking a potential loss versus guaranteed loss. So if you have the liquidity then your hand is forced. Other options would be to hold the money in a different asset class that would go up with inflation such as gold (if you are confident in your security) or property (if you have enough, aren't at risk of losing you job and if the banks are willing to lend). | |
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| Which of you silly debt slaves..... on 18:13 - Sep 28 with 763 views | StokieBlue |
| Which of you silly debt slaves..... on 18:07 - Sep 28 by Kropotkin123 |
True, but you a risking a potential loss versus guaranteed loss. So if you have the liquidity then your hand is forced. Other options would be to hold the money in a different asset class that would go up with inflation such as gold (if you are confident in your security) or property (if you have enough, aren't at risk of losing you job and if the banks are willing to lend). |
"True, but you a risking a potential loss versus guaranteed loss."
Yes but you need to factor in the scale of potential loss, you can't just balance the equation in the way you have, one has total potential downside, the other doesn't. In the end capital growth be it by coupon or dividend is a function of risk. This all comes down to how risk adverse or not the individual is willing to be.
Gold would only be a suitable hedge against inflation if the US also goes negative which it might. It's also worth noting that it's far from a perfect correlation between rising inflation and rising gold prices.
All your points are valid but all are caveated by the risk the individual is willing to accept.
SB | |
| Avatar - IC410 - Tadpoles Nebula |
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| Which of you silly debt slaves..... on 18:51 - Sep 28 with 716 views | hampstead_blue |
| Which of you silly debt slaves..... on 17:27 - Sep 28 by StokieBlue |
Not exactly a risk-free strategy.
SB |
There is no such thing as 'risk free' investing.
Cash is getting hammered by inflation, and will be for a long time yet.
I've never held cash. Always used a credit line instead.
As for negative rates, if you have an appetite for risk then borrow to invest. | |
| Assumption is to make an ass out of you and me.
Those who assume they know you, when they don't are just guessing.
Those who assume and insist they know are daft and in denial.
Those who assume, insist, and deny the truth are plain stupid.
Those who assume, insist, deny the truth and tell YOU they know you (when they don't) have an IQ in the range of 35-49.
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| Which of you silly debt slaves..... on 19:13 - Sep 28 with 681 views | Kropotkin123 |
| Which of you silly debt slaves..... on 18:51 - Sep 28 by hampstead_blue |
There is no such thing as 'risk free' investing.
Cash is getting hammered by inflation, and will be for a long time yet.
I've never held cash. Always used a credit line instead.
As for negative rates, if you have an appetite for risk then borrow to invest. |
Not even an emergency fund? | |
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| Which of you silly debt slaves..... on 20:38 - Sep 28 with 567 views | britbiker |
| Which of you silly debt slaves..... on 17:23 - Sep 28 by hampstead_blue |
Invest in shares. Cash is useful but has very limited benefits. |
I was lucky to inherit a small sum a couple of years ago. I left it in ssvings sccounts for a while earning 2% on average in year one then didly squat lsdt year (thus a minus when inflation is factored in).
In march I 'selectively gambled' in tge stock market via 20k in an ISA. In 3 months the investment has grown 4k. I have tried to maintain ethical investments. Hydrogen start up companies. Hydroponics, selective health companies etc.
I was lucky that I could buy during a crash and expect that some of the gains will drop if the covid situation worsens. But im not looking short term.
Earning nothing in a safe bank account was driving me mad. |  | | |
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