Just been having a discussion about banks and I decided to have a look around at what could happen if Greece goes the No route today.
There seems to be two key things that will happen.
1) Greece will be screwed for some time to come and life there will be unpleasant.
People will adapt and like everywhere else some will weather the economic storm better than others. Those that have stuck to the good old ways will be better that those that owe a lot of money.
2) Everyone with money in the bank will lose some of that money.
An interesting comment at a SciFi writers site, VoxDay;
Remember, a deposit is just an unsecured loan to a bank. So, a bail-in is simply the bank unilaterally telling you that it is not going to pay back a percentage of the loan and will no longer be paying interest on the portion that it will not be paying back.
Why anyone would want to loan to such a borrower without collateral for the paltry amount of interest available, knowing that the borrower can decide at any time how much they want to pay you back (if they want to pay you back at all), is an interesting question to contemplate.
Says it all really and makes me want to contact my employer and get paid in cash. I might try that and see how it goes. In the meantime I get paid just before my bills are due, I set it up that way. I will start to empty my account after the bills are paid and pay everything else by credit card or cash.
In the meantime keep plenty of cash outside your bank and only use it where you need to.
The only downside of this is that our thieving government could devalue the cash in circulation but it won’t happen overnight so you can convert it to something worthwhile. Precious Metals, Prepping stuff, drugs, guns.
Wise words SD, BTW Greece has indeed voted NO, Now think about this WHY has the EU / UK govts REDUCED the amount of protection to UK current and Saving accounts from £85K to £75K?
I think its because when Greece says no and may default on its £233 Billion debts the bankers, money men speculators and traders along with the IMF and ECB are going to want to get their money bank from SOMEONE, and I think that someone is likely to be every other Brit / European with a bank account. I still believe the raid on Cypruses banks was an EXPERIMENT to see how it went down, now they got away with stealing the cypriots savings I think they will levi a tax on everyone else in the EU.
By reducing the cover on accounts the UK govt will have to repay less if the EU snaffles 20% of our money.
I was not aware that the UK Govt. had reduced the guarantee cover to £75K.
The Moneyfacts website is declaring, as of todays date (6th July 2015), that the cover is £85K per person per UK Banking Licence and in Europe it is 100,000 Euros.
In any event we are being dragged into a situation that most of us do not relish by a bunch of reckless individuals who thrive on brinkmanship. The fact that none of these characters can be held responsible or accountable for anything that happens is also frustrating.
What happened in Cyprus was, indeed, totally unfair.
Just as well that I, personally, do not have that kind of cash to lose.
Keep looking after the loose change – you may need it!!
Iaams here is the link to the news
http://news.sky.com/story/1512937/bonkers-move-cuts-bank-guarantee-by-10k
Have been slowly catching up with the world this a.m.
The only thing I would say is that this is a ‘proposal’ and if agreed (i.e. no major dissent) then it will happen on Jan 1 next year (2016).
So I will start to save my medallions and promises.
I’ve been keeping a very close eye on this Greek crisis lately & I’ve withdrawn every spare penny I can out of the bank. The only cash I have in my account right now is enough to pay my direct debits until my next payday in a fortnight.
As for cutting the £85k to £75k, the explanation was it’s the value of the £ when converted into €100k & it’s calculated every 5 years. Personally I reckon that’s rubbish & it’s just incase things do go belly up with Greece. In my suspicious mind, it’s all tied in together & it’s only bad news for the ordinary people like us.