Are you leaving your money in the bank?

.OrgOwner · 09-26-2008, 6:27 AM

For those of us lucky enough to have some savings how do you feel about having your hard earned money in the bank during these very uncertain economic times? With banks falling over it has to make people a little nervous. Is the best practice just to get further in debt perhaps?

setanta · 09-26-2008, 7:14 AM

Money still in the bank (nervous shake) Im with the RBOS so far it seems to be holding up well. I think the larger institutions will merge if they have any problems but will come out on top after the chaos
Still have this little panic thought in the back of my mind though that I should withdraw it and stick it under the matress, until the panic is over

.OrgOwner · 09-26-2008, 7:37 AM

Exactly the point, you can't be the only one thinking of sleeping on their cash these days. If people start to withdraw funds in large numbers then where is that going to take us?

setanta · 09-26-2008, 9:28 AM

Thats what brought down Northern Rock here even though the analysts said it was a safe bank

steingar · 09-26-2008, 11:13 AM

If things get that bad your money will be worth no more than the paper it's printed on. They probably won't, but they'll be bad for awhile.

DragonRider · 09-26-2008, 11:21 AM

If we all took our money out of the bank, they would all fail. Economy and banking is built and thrives on us...consumers....faith in the banks. Most banks, even the good ones, do not actually have the cash available to disperse to all of it's investors. Once you put your hard earned cash in the bank, they take that money and loan it out to the community, which is why we earn interest etc. I am hoping, that it will be safe and consumer confidence will not go any lower. I have zero faith in George Bush and our government, but there aren't a whole lot of other choices out there to go with? Wait and see is about the only choice....or the mattress option!!

bettingpython · 09-26-2008, 11:33 AM

Ehhhh, sure why not. See there's already a bailout plan it's called FDIC. Of course it would have all failed had. JP morgan not bought WAMU the FDIC account would have been fully depleted.

ryoung1 · 09-26-2008, 1:54 PM

There's plenty of blame to go around but panic is the last thing we need. I know everyone is thinking about it, but I sure hope not too many act on that urge to withdraw what they have in the banks. It's very fragile at this point.

bettingpython · 09-26-2008, 2:10 PM

Many banks have cut off interbank lending, world banks are signifigantly decreasing the lending to US banks. The first time buyers program for new home buyers that do not have the traditional 20% down for a FHA mortgage has been taken off the table. Money lending requirements need to be rewritten. Our economy was artificially pumped up by speculation in the market place and now cities are experiencing gas shortages because everyone is getting paranoid and filling up more frequently and buying up extra gas. The up side of decreased futres specultion is that we are seeing gas prices drop here locally its down 40 cents locally in the past week I just filled up for 3.29 gallon today, monday it was 3.69 a gallon. If we panic supply and demand will cause infltationary price increases.