The Credit Crunch

[Scarlet Pimpernell]

I did read something about it being an "individual" thing as opposed to account thing...so someone with £60k in the bank risk losing £10k, but a couple with £100k in a joint account will not lose a penny...

I wouldn't worry too much...it's just a market "correction" as they were all loaning out money no one acftually had...just move to a one acount type of mortgage - that's the best thing to do...keep a debit and credit, then it becomes knock for knock should the worst happen...

Having said that - Mike B says, it will take one big casualty and then everyone will panic...

It's getting bad in the IT industry. I'm an IT consultant currently working for an education authority and am OK - some of my mates are having cardiacs about their contracts...especially those in Shipping and textiles - it's becoming harder and harder as each day goes by...one mate works for a clothing retailer and is getting very worried too...

[Mike_B]

We're about to find out how good the FSCS 50k guarantee is: Linky

[Mike_B]

I did read something about it being an "individual" thing as opposed to account thing...so someone with £60k in the bank risk losing £10k, but a couple with £100k in a joint account will not lose a penny...

I wouldn't worry too much...it's just a market "correction" as they were all loaning out money no one acftually had...just move to a one acount type of mortgage - that's the best thing to do...keep a debit and credit, then it becomes knock for knock should the worst happen...

Having said that - Mike B says, it will take one big casualty and then everyone will panic...

It's getting bad in the IT industry. I'm an IT consultant currently working for an education authority and am OK - some of my mates are having cardiacs about their contracts...especially those in Shipping and textiles - it's becoming harder and harder as each day goes by...one mate works for a clothing retailer and is getting very worried too...

You're right about it being an individual type of thing, but IMO wrong about the offset mortgage. If the worst should happen, it won't be a knock for knock at all, you would lose the money you were using to offset, and still owe the mortgage. Worst of all worlds. IMO the best thing to do is to use the savings to pay off a big chunk of the mortage outright - then you'll have less to lose, and much less debt to pay too.

[Scarlet Pimpernell]

Just spoke to my Financial Advisor - FSA rules are clear...as far as offset is concerned, it is effectively treated as one account, therefore you only get "stung" for any net debit...

I remember where I heard about it orginally - Mark Preston on Radio 5 Live...where he stated that if the debit and credit (i.e. offset balances and mortgage) are in the SAME institution then your credit's pay any debits and you face just the bill or the balance...

Here is a link where this specific question is answered:

http://www.moneysupermarket.com/community/...and-109902.aspx

EDIT - just noticed the shares are down yet again...almost -200 after the Chancellors rescue package, which just doesn't go far enough. The government will profit out of this in the long term, and if anyone has spare cash now might be a good time to buy some shares in banks for the long haul IMHO...

And anyone who still has an old endowment which will mature within 5 years ought to think again NOW - most are linked to UK managed funds and stocks and will be hit even harder. So that £10k deficit may become £12k!

[Parthiban]

if anyone has spare cash now might be a good time to buy some shares in banks for the long haul IMHO...

That is true, but with banks falling left, right and centre that would be quite a risky gamble..............

[Scarlet Pimpernell]

if anyone has spare cash now might be a good time to buy some shares in banks for the long haul IMHO...

That is true, but with banks falling left, right and centre that would be quite a risky gamble..............

I would say "spread betting" a total of £500 or a £1000 on LloydsTSB, Barclays, HBOS and RBS might b a gamble worth taking...if you can afford it that is...

Hot off the press - the Banks have just dropped Interest rates by 0.5%

[Parthiban]

Hot off the press - the Banks have just dropped Interest rates by 0.5%

Yep I'm not sure if it's a good idea in terms of the economy, but great news in terms of my mortgage :D

[kam05]

Hot off the press - the Banks have just dropped Interest rates by 0.5%

Yep I'm not sure if it's a good idea in terms of the economy, but great news in terms of my mortgage :D

Same here, as I'm on a tracker mortgage this rate cut will help me too.

[Scarlet Pimpernell]

Remember guys - it's a base rate cut - NOT a motgage cut at this stage...

Normally the Mortgage lenders follow the Base rate (and stay + 1.5%ish) - will they this time? All are suffering with profits warnings and new new business now so we'll have to wait and see!!!!!

It's an opportunity for them to see more immediate cashflow, so no doubt they'll act like a CARTEL and lean one way or another together!!!

[Parthiban]

Remember guys - it's a base rate cut - NOT a motgage cut at this stage...

Depends on the mortgage of course, but for me it is a cut - my rate is base rate +0.75%, so if base rate drops, my rate drops :)

[coolrides]

The worst part is it's so hard to predict what's going on with the banks, so where are you supposed to put your money!

Just move it around so that you have no more than £50k with any one bank etc. bearing in mind that many banks/building societies are linked. We have joint accounts so can have £100k with any bank etc. Not earning a lot but prefer 5% net to risk of losing it.

but are you not only guarenteed 50000 in one account and the rest goes bye bye. shoe boxes fill them up and get a safe in your house bolted to wall. lol

[Parthiban]

but are you not only guarenteed 50000 in one account and the rest goes bye bye. shoe boxes fill them up and get a safe in your house bolted to wall. lol

£50k per bank per customer, if joint account £50k each. So therefore £100k per bank in as many banks as you need - obviously there is an upper limit restricted by the number of banks available but I don't know anyone who has that much cash! :P

[legendswraith]

I'd forget the bank investments atm and put your money into canned food and shotguns :D

[Gord]

If you had purchased £1000 of Northern Rock stock one year ago, it would be worth £4.95 today.

With HBOS, you would have £16.50 left of the original £1000

With XL Leisure, you would have less than a fiver.

And if you had purchased £1000 of Seguro Air Lines stock, you would have a measly 49p.

However, if you had purchased £1000 worth of stella one year ago, drank the lot of it, then re-cycled the cans at an aluminium plant for a cash refund, you would have £21.40.

And so, based on the above information, the best current investment advice is to drink heavily and recycle......

[legendswraith]

If you had purchased £1000 of Northern Rock stock one year ago, it would be worth £4.95 today.

With HBOS, you would have £16.50 left of the original £1000

With XL Leisure, you would have less than a fiver.

And if you had purchased £1000 of Seguro Air Lines stock, you would have a measly 49p.

However, if you had purchased £1000 worth of stella one year ago, drank the lot of it, then re-cycled the cans at an aluminium plant for a cash refund, you would have £21.40.

And so, based on the above information, the best current investment advice is to drink heavily and recycle......

I like the way you think

[Gord]

If you had purchased £1000 of Northern Rock stock one year ago, it would be worth £4.95 today.

With HBOS, you would have £16.50 left of the original £1000

With XL Leisure, you would have less than a fiver.

And if you had purchased £1000 of Seguro Air Lines stock, you would have a measly 49p.

However, if you had purchased £1000 worth of stella one year ago, drank the lot of it, then re-cycled the cans at an aluminium plant for a cash refund, you would have £21.40.

And so, based on the above information, the best current investment advice is to drink heavily and recycle......

I like the way you think

GORDON BROWN was visiting a primary school and he visited one of

the classes. They were in the middle of a discussion related to words and

> their meanings.

>

> The teacher asked Mr. BROWN if he would like to lead the

> discussion on the word 'tragedy'.

>

> So the illustrious leader asked the class for an example of a

> 'tragedy'.

>

> A little boy stood up and offered: 'If my best friend, who lives

> on a farm, is playing in the field & a tractor runs over him and kills him,

> that would be a 'tragedy.'

>

> No, said GORDON - that would be an accident.'

>

> A little girl raised her hand: 'If a school bus carrying fifty

> children drove over a cliff, killing everyone inside, that would be a

> tragedy'

>

> I'm afraid not, explained GORDON - that's what we would call a

> great loss'

>

> The room went silent. No other children volunteered. GORDON

> searched the room. 'Isn't there someone here who can give me an example of

> a tragedy?'

>

> Finally, at the back of the room, little Johnny raised his hand...

>

> In a quiet voice he said: 'If a plane carrying you and MR. DARLING

> was struck by a 'friendly fire' missile & blown to smithereens, that would

> be a tragedy.'

>

> 'Fantastic!' exclaimed GORDON. 'That's right. And can you tell me

> why that would be tragedy?'

>

>'Well,' says little Johnny 'it has to be a tragedy, because it certain wouldn't be

a great loss and it probably wouldn't be a bloody accident either!'

[Monster-Mat]

my line of business is quite bubbly at the moment, seems to be lots of money flowing into it.....i suppose i shouldn't complain really

[DJ Wozza]

However, if you had purchased £1000 worth of stella one year ago, drank the lot of it, then re-cycled the cans at an aluminium plant for a cash refund, you would have £21.40.

And so, based on the above information, the best current investment advice is to drink heavily and recycle......

Love it Gord

just tried a can of that new 4% Stella, not for me at all.

Man who is the fountain of knowledge of all things Stella (& most recently Vodka Red Bull :winky:)

what do you think of the 'new' Stella ?

[Gord]

However, if you had purchased £1000 worth of stella one year ago, drank the lot of it, then re-cycled the cans at an aluminium plant for a cash refund, you would have £21.40.

And so, based on the above information, the best current investment advice is to drink heavily and recycle......

Love it Gord

just tried a can of that new 4% Stella, not for me at all.

Man who is the fountain of knowledge of all things Stella (& most recently Vodka Red Bull :winky:)

what do you think of the 'new' Stella ?

Its Inbev's way of trying to change the way people think about the normal stella, wife beater, park bench stuff.

Ive not had any yet, but is it still called stella or just artois ? as i think thay are going to be dropping the name stella artois to just artois as part of the image change :o

Still be good old stella to meeeeee :D

[Paradroid]

I also tried that 4% Stella the other week, and thought it was horrible.

I like normal Stella too, although I've started drinking proper German-brewed beer because I reckon it's a bit more pure (less additives/chemicals). My favourite is Lowenbrau but I can't find it anywhere now, so have switched to Becks.

[Dave-Ellen]

had some good news y/day in that a script I wrote to identify people who are entitled to council tax benefit but are not getting it is to be marketed by a major software house. Deal is I do my bit 4 times a year for £800 and that takes me 1 hour to do (for all 4 extracts)...yippeeeeeeeeeeeeeeeee best thing is can do it from home after a normal days work.

I can then start to recycle Stella cans.............

[Mike_B]

but are you not only guarenteed 50000 in one account and the rest goes bye bye. shoe boxes fill them up and get a safe in your house bolted to wall. lol

£50k per bank per customer, if joint account £50k each. So therefore £100k per bank in as many banks as you need - obviously there is an upper limit restricted by the number of banks available but I don't know anyone who has that much cash! :P

Technically it's not per 'bank' but per banking license. For example, RBS and NatWest are covered under the same license, so keeping £50k in both means you're only protected in one of them. Similarly Banco Santander own both Abbey and Alliance & Leicester, so the same applies. You need to find out which banks own each other and spread your money between groups rather than 'banks'. There are lists of insitutions that come under the same licence around, can't remember where they are off-hand though.

You'd be surprised how many people have cash lying around - sometimes it's just a matter of timing. On another forum I frequent, a guy sold a house and stuck the £200k equity into Icesave while he was finalising buying another one. As of now, that money simply doesn't exist any more - he might get it back at some point, but not straightaway.

[Mark W]

Slightly but related.

I set up savings accounts for my 2 sons when they were born - and my eldest (7 yrs old) now has a reasonable amount saved up - Both my wife and I contribute to it each month and have set up a target of at least £1000 for each year old they are

Intention is to keep going until they are ~21 or so.

My question is - does the protection also apply to children/childrens accounts - I'm pretty sure it must do but its not something that gets mentioned.

[dave1]

Slightly but related.

I set up savings accounts for my 2 sons when they were born - and my eldest (7 yrs old) now has a reasonable amount saved up - Both my wife and I contribute to it each month and have set up a target of at least £1000 for each year old they are

Intention is to keep going until they are ~21 or so.

My question is - does the protection also apply to children/childrens accounts - I'm pretty sure it must do but its not something that gets mentioned.

Yes! If the account is in their own name.

If anyone has any concerns re accounts etc. the first thing to do is ask the bank about it.

[Parthiban]

Technically it's not per 'bank' but per banking license. For example, RBS and NatWest are covered under the same license, so keeping £50k in both means you're only protected in one of them. Similarly Banco Santander own both Abbey and Alliance & Leicester, so the same applies. You need to find out which banks own each other and spread your money between groups rather than 'banks'. There are lists of insitutions that come under the same licence around, can't remember where they are off-hand though.

You'd be surprised how many people have cash lying around - sometimes it's just a matter of timing. On another forum I frequent, a guy sold a house and stuck the £200k equity into Icesave while he was finalising buying another one. As of now, that money simply doesn't exist any more - he might get it back at some point, but not straightaway.

Yep that's a very good point, cheers for pointing it out. Yep we had a fair amount of money in the Halifax after selling a house too, and got a little scared when they collapsed and took it out at the first opportunity, thankfully all seems safe now but makes sense to stay under the guaranteed limits.......