I'm seriously considering pulling everything back I'm to cash in a safety deposit box. I work for one of the big four and I'm becoming increasingly alarmed by their exposure to a downturn in housing. It looks to me like Europe will freeze up, the banks won't be able to borrow, our bubble will start picking up to the downside and that will be hell on the banks. I'm curious to know what others think re the stability of our banking sector? Is it time to get out?
lol - Kris Sayce was spot on about Australia's rotten property market, and he's also going to be 100% correct about our rotten banking sector ... http://www.moneymorning.com.au/20100910/has-commonwealth-bank-deliberately-misled-investors.html There are many similar articles in Money Morning, i just randomly selected one to illustate...
If we're talking about leveraged property investors, then yeah, unless they wanna sell at the bottom Somehow, the safety deposit box idea sounds fishy. :/
When does the government deposit guarantee finish? I don't intend to leave any significant funds in the bank after that safety net is withdrawn.
Why would you take your cash from an interest earning bank account and put it in a non interest earning BANK deposit box? Why not take it home? They have your money either way in your scenario.
Do you mean this Government Guarantee? http://www.guaranteescheme.gov.au/ Or is there another scheme that protects all depositors?
I never said anything about a bank safety deposit box. However, it's more about moving in to cash ahead of a possible run on deposits than anything else. Read 'shitstorm', published by the Melb uni press(?) to see what happened last time.
I have to agree it does worry me abit, there is a chart showing the big-4 banks and the percentage of there total assets they have exposed to the housing market, its massive CBA is 65% i believe. Westpac was recently selling property securitys so there getting them off there books, wheather thats because there toxic or them just being oportunistic who knows. One alarming stat is Australia private debt which i believe is the biggest in the world (credit card, personal loan, morgage). These bank glitches are fishy too, i smell a rat with that.
yeah take it out. Put it somewhere safe and see what happens. Probably safer in your hands than the banks i reckon. Go with your gut. If your becoming increasingly alarmed then do it tomorrow! I am not at panic stage but have already moved some of my humble account into cash and burried 6 feet deep in a forrest next to some wild mushrooms. We are living in uncertain times and the banks are probably in more trouble than we realize. Pretty scary really. And if we are just trusting that the gov backed savings thing will always be there for us i think we could be in for a rude surprise.
I asked a supervisor in the bank that question the other day, or more specifically "what happens if theres a bank run after that runs out" and got smirked at and a reply of 'that wont happen here.Its different here mate.'
I'm only low level, but I'm astonished by how little the people above me know about banking/finance/economics. That bank manager obviously wasn't around in 2008/2009 when they were running out of $100 notes and had to order more from The rba.
good post & thanks for all input. The amount of fiat/ digital that I hold in a bank is about 10% of my wealth. Many baskets.......... Many eggs.........
It turns out that the guarantee for smaller (under 1 million) deposits is due to expire / to be reviewed on October. The Guarantee for large deposits has been terminated.
