Should we take our savings out?

Discussion in 'Opinions, Beliefs, & Points of View' started by LetItGo, Oct 11, 2008.

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  1. LetItGo

    LetItGo Staff Alumni

    Im seriously wondering if this global financial train wreck can be stopped.

    If momentum is now going to carry us over the precipise and into free-fall.

    Can they stop it? I mean the entire system is based on insanity anyway.

    I tell you, another massive plunge on the markets and....

    My main concern right now is my mum. I dont have any savings, but she does, should I be suggesting she take it out?

    PM Rudd keeps telling us our banking system is among the best, they have already taken steps to guarantee 20k in personal savings, now its going to rise.

    But that surely doesnt matter if America goes under?

    Is it time to starting pulling out money and stocking up on instant noodles and vegetable soup yet?
    Last edited by a moderator: Oct 11, 2008
  2. aoeu

    aoeu Well-Known Member


    That is the worst thing you could do! Leave your money in the bank. A run on the banks is a BAD thing.

    All accounts are guaranteed by the government, and they will be paid regardless of the financial shape of the bank.

    Look even at the Great Depression in the US. There were no mass starvations. No one dies because of depressions in industrial nations. Panic behaviour is reeeeallly bad. Honestly, the economy is fucked... Someone got the bright idea of lending money to people who don't pay back loans, and now we all have to suffer the consequences. But your mother will be fine.

    As an aside, I get the impression that if everyone ignored market crashes, nothing bad would come of it. As it is, people tighten up spending and this further damages the market, causing a nasty cycle.
    Last edited by a moderator: Oct 11, 2008
  3. LetItGo

    LetItGo Staff Alumni

    But what exactly is this guarantee based on? where will it come from? the reserve? see this is the problem, there is no transparency on how the system works. If America's Federal Reserve ends up down shit street, I dont know what effect it has on ours. I dont have a clue...and neither does 99.9% of the population. Now the treasury is predicting massive falls in commodity prices, Australia's economy is heavily based on commodities.

    I want the system to fail, I want the system to reset, its the only chance we have of building something thats sustainable. Ill survive, and I need to make sure my mother is taken care of...although hey if we end up in hyperinflation, what she has becomes worthless anyway.
  4. Eric

    Eric Well-Known Member

    It's the worse you could do. The worst thing people can do is remove their money from banks in such crisis.
  5. aoeu

    aoeu Well-Known Member

    The system won't fail. Period. The government has access to vast amounts of debt, and the banking system is the most important thing to prop up. Life savings aren't the concern if the federal government can't save the banks; anarchy is.

    Oh, and with the latest American bank failure, Washington Mutual, another bank is guaranteeing their deposits. There is a loooot of financial cushion everywhere. Australia is small, too, so it's a much smaller issue.

    And, hyperinflation will not occur. Australia would probably be invaded if they started printing bills... But they wouldn't, because the country would be destroyed by that.
    Last edited by a moderator: Oct 11, 2008
  6. LetItGo

    LetItGo Staff Alumni

    I think thats the ultimate question for me.

    Can we contemplate a new way of living things that involves a "reasonably smooth" transition period, or do we have to bring the fucker down and start from scratch? Its not like those at the top of the pyramid are likely to go voluntarily.

    So what happens if we ride this out? business as usual? back to running the asylum?

    Are we not smart enough to seek a better way? Why are we putting up with a system that condemns people to a lifetime of debt, fucks the planet over, kills thousands of innocent people too "grease the wheel".

    I just think humanity is better than this, I think our potential is greater.
  7. Esmeralda

    Esmeralda Well-Known Member

    Take out your money, put it in a shoebox, buy 20 years worth of toilet paper and hold on for dear life. Just kidding. CHILL out, smoke a bowl and this too shall pass. And if it doesn't, fuck it.
  8. LetItGo

    LetItGo Staff Alumni

    I dont have any weed :sad:
  9. Random

    Random Well-Known Member

    Is it wrong of me not to give a damn?
  10. Esmeralda

    Esmeralda Well-Known Member

    Aww...Tell your dealer I said he sucks.
  11. HappyAZaClaM

    HappyAZaClaM Guest
  12. Esmeralda

    Esmeralda Well-Known Member

    I don't get it. Liquor, drugs and HBO sounds like a pretty sweet life to me. I fucking LOVE how we are a "capitalist" country and yet the good 'ole US and A bails out any freaking failing company they can get their hands on. You say hypocrisy, I say Democracy!!!
  13. HappyAZaClaM

    HappyAZaClaM Guest

    uh...that's U S OF A....just...thought I'd point that out. not that it's
    really a big deal or anything. United States AND America just doesn't
    have a nice ring about it. so, if I am maikng too much of this, please let
    me know, because well, far be it for ME to be telling someone else how
    to use proper grammar. but I gues the point I'm making here is that,
    well. come to think on it, I don't even know who the hell you wuz a talkin
    to here. lemme go back and check the posts here because well..I
  14. JohnADreams

    JohnADreams Well-Known Member

    Competition in the highest levels of the modern capitalist system:
  15. aoeu

    aoeu Well-Known Member

    It might be noted that the banks that failed so far have had their stocks wiped to zero and their assets forcibly moved to other banks. Pure capitalism does not work; the Great Depression demonstrated this nicely. The bank bailout is a stopgap measure to keep more banks from failing: if the banks fail, the currency is worthless and the economy grinds to a halt.
  16. Boratz

    Boratz Well-Known Member

    Bad joke. One Cookie idiot.
  17. XXXXX

    XXXXX Antiquities Friend

    Dunno how the banking system works in Oz, but if their is a Govt Guarantee (of AUD20k?) per Bank, then spread the money between a few banks. If feeling very worried keep a month (or 2?) of expenses monies in cash at home.

    If you run out of banks to spread the money around, then buy Government Bonds.

    Obviously the above all relies on the Oz Govt not going broke and refusing to meets it's guarantees. If that happens you want to already be invested in lead and guns, as the Aussie Dollar will be worthless and with no money available the problems in Oz will be somewhat greater than money alone.

    Not to say that any Govt could not say "we don't have the money now" and the guarantees and debts (Govt Bonds) will be repaid over the next few years (or so?) but that is very different from saying "Yer money has gone".

    As a rough guide, if yer can't spell the name of the bank's head office(Parent Company) or put your finger on it's country of origin on a map - then take yer money out, no matter how high the interest rate.

    Obviously it is not a good thing if everyone takes their money out of a bank - it is a self fulfilling prophesy, but times like these you have to look after no.1. In any event buying Govt Debt means the Govt can choose to use your money to prop up a bank - and without you taking all the risk.
  18. Esmeralda

    Esmeralda Well-Known Member

    The whole bailout stinks. Just like the government bailed out Amtrak and the Airlines, it discourages competition. The whole idea of Capitalism is that if you are shitty at running a company, your company fails and someone else who can do a better job at it will succeed.

    Lemme get this straight, banks were shady and stupid enough to give out loans to people who couldn't possibly pay them back. Those banks failed (ya think?) So our government steps in and says, "You think YOU guys were shady and stupid? We can top that!" So they take over all these loans that any other normal, successful bank wouldn't touch with a 10-foot pole, Wall Street hits the toilet, people's 401ks are pretty much worthless, and they all lived happily ever after.
  19. aoeu

    aoeu Well-Known Member

    Well, stupidity aside, what's to be done -NOW- that those loans have been defaulted upon? The damage has been done, and the government has gone into full-on damage control. If all of those loans were defaulted upon, and all those people were evicted, the price of houses would fall 70% overnight - and then all the loans on homeowner's equity for people who aren't subprime would also be defaulted upon... All banks would then fail. Then guns, bullets, and dried rations are the order of the day.

    And I suppose that banks are going to be regulated on this front from now on, though I doubt they'll ever be stupid enough to try it again.
  20. XXXXX

    XXXXX Antiquities Friend


    I am afraid you are somewhat optimistic on that one :tongue:
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