An economic collapse ahead?

[crofter]

It is rather funny to see these "coffin dodgers" rushing to withdraw their life savings from Northern Rock ... kind of scares me that I don't ever want to become old and deluded like these sad cunts, so I have decided to never save a penny ever again ... haha that should do it.

[Trumpton]

Seeing all those people waiting outside to withdraw their money made me think that they are the type who really do think the earth is flat.

[Marblehead Johnson]

I agree with you Warren zevon rip.

It's the same sort of panic that the media has caused in the past by saying things like there is the worry of a petrol shortage, so everybody goes out and buys as much petrol as possible and causes the problem!

When the secondary banking market collapsed in 1974 (due to lending by smaller institutions against over-inflated property prices), the Bank of England set up the "lifeboat" fund which all banks contribute to.

There is also protection in place to stop people losing all their savings if a bank was to go "bust" but the chances of that happening in the UK are virtually nil. BCCI was a different case as that was fraud.

[colonel]

A couple with a joint account are protected for up to c?60,000 in that account should a bank default. Most people, therefore, have nothing to fear.

[colonel]

There's one hell of a lesson there. Keep it in little bundles- plenty of baskets and remember that c?31,000 personal limit! Invest in bonds- Government ones called 'gilts' are super-secure: they are guaranteed by the Treasury. If you are a [legitimate] non-taxpayer, remember offshore.

[planeterotica]

When the goverment and the gurus tell you not to panic then that is just the time to panic but its probably to late, i believe the world economy is heading for recession you only have to look at how unstable the markets are at the moment, i sold all my shares back in April and put the money into a high rate interest account but not with the Northern Rock and it has earned me more than it would have done in the markets since April without the sleepless nights, last year i had most of my money in a property fund and it increased by 20% but i believe at the moment cash is King and as Maggie Thatcher use to say you cant buck the markets. As for Northern Rock watch their share price when the market opens this morning and if it continues to fall it will become a takeover target but i doubt if there will be much profit to be made out of it for the small shareholder !cool!