Cash is the King...

SilverDJ said:
https://www.infochoice.com.au/news/...covered-by-the-governments-deposit-guarantee/

This is probably a more official list somewhere.
Click to expand...
66rounds said:
https://moneysmart.gov.au/glossary/australian-government-guarantee-on-deposits
Click to expand...

Thanks guys. It's unlikely these institutions e.g. La Trobe Financial would go bust in the newer future but these are uncertain and to a certain extent unchartered territory with the covid impact. Good to know are is a garantee even though your money is doing f**k all in the bank
 
SilverDJ said:
The politicians have their money in the banks too, they aren't going to let their own cash vanish
Click to expand...
No, they don't. When Greece was in trouble most politicians kept their money in Switz Bank leaving ordinary people to struggle/the person was permitted to withdraw 80 euro a day.

SilverDJ said:
I'm not saying keep all your cash in the bank, that's actually dumb because you should have a good lot in gold. Just don't be delusional about it.
Click to expand...
I'm not keeping more than 10% cash in the Bank-this is the merely insurance.

SilverDJ said:
Thinking that your guaranteed cash in the bank will suddenly vanish is delusional.
Click to expand...
As I've said it is not delusional-it can happen and it has happened in the past in some countries!
 
66rounds said:
It won't disappear bud, it'll be locked up behind withdrawal limits for the common folk just like has happened countless times overseas.
Click to expand...

Which is why I've been saying forever that you should always have ample cash outside the system, mostly for reasons not to do with remote possibility banking withdrawl limits. Power failures, banking systems issues, hacking, network issues, and just simply individual stores going down etc are the major and vastly more plausible scenarios that can and have actually happened.

Of course those that are important won't have to face such limits. By locking it up that way, it'll remain in system but restricted to where they want it to be spent. No bullion transactions for you. No cash purchases for you. I often keep my accounts empty. Wages go in, bills get paid, rest is withdrawn same day.
Click to expand...

For most people that's just not practical, as all sorts of things automatically come out the accounts. In fact when you have cash withdrawl limits, this is how the economy kicks ticking over, electronic banking.
 
SilverDJ said:
Which is why I've been saying forever that you should always have ample cash outside the system, mostly for reasons not to do with remote possibility banking withdrawl limits. Power failures, banking systems issues, hacking, network issues, and just simply individual stores going down etc are the major and vastly more plausible scenarios that can and have actually happened.



For most people that's just not practical, as all sorts of things automatically come out the accounts. In fact when you have cash withdrawl limits, this is how the economy kicks ticking over, electronic banking.
Click to expand...
Practical enough for me. I don't care if their fake economy needs my deposits or not.
 
StewyD32 said:
Thanks guys. It's unlikely these institutions e.g. La Trobe Financial would go bust in the newer future but these are uncertain and to a certain extent unchartered territory with the covid impact. Good to know are is a garantee even though your money is doing f**k all in the bank
Click to expand...

The provisions for a 250K guarantee are in place but needed to be activated by APRA. This is where the guarantee becomes murky and confidence is diluted.

Your currency is doing less than F@#K all in the bank, it's devaluing from inflation! With Q.E and governmemt stimulus packages at every turn...it's going to be worth F@#K ALL in no time.
 
buy gold now, when inflation goes up followed by interest rates then dump the gold to pay off the mortgage. the gold held it's value so it should pay off more than inflated dollars earned later.
 
StewyD32 said:
Thanks guys. It's unlikely these institutions e.g. La Trobe Financial would go bust in the newer future but these are uncertain and to a certain extent unchartered territory with the covid impact. Good to know are is a garantee even though your money is doing f**k all in the bank
Click to expand...

The devil is in the detail.

The Commonwealth Deposit Guarantee should it be called on does not mean that if a Aust bank / ADI / financial institution (approved and regulated by APRA) went bust that depositors could rock up to the RBA / APRA the next day and get their money back in full. The guarantee comes into play post the liquidation of the bank / financial institution. The liquidator recovers as much money as they can from what is owing to the bank and then distributes those funds to creditors of which depositors are. If there is a shortfall between what you receive from the liquidator and your bank a/c balance (at time the bank went bust), then the Govt pays you the balance.

The liquidation of a bank will take a very long time. An example was "Pyramid Building Society" in Geelong. It's collapsed in 1990 and it took till 2005 for depositors to receive final payments which amounted to $0.51 on the dollar. Pyramid was small beer compared to one of the Big 4 or larger regional banks...imagine how long the liquidation of a large Aust bank would take, cos that's how long it will take depositors to get their money back with the Govt Guarantee.
 
Oddjob said:
Pyramid was small beer compared to one of the Big 4 or larger regional banks...imagine how long the liquidation of a large Aust bank would take, cos that's how long it will take depositors to get their money back with the Govt Guarantee.
Click to expand...
Operation was very successful,but the patient has died....
With this Govt Guarantee are you assured,that your grandkids can at least get 50% of your money....
 
Those in the banking sector know the Govt guarantee is BS. Dudd and the Black Swann assumed the public wouldn't read the legislation and just take their announcement at face value....and it did have the desired effect and calm bank depositors who were starting to withdraw large sums of cash from banks / ATM in the few days leading up to the weekend announcement by the the Dudd Govt.
 
Despite all the MSM bagging on cash, it seems people want it and the RBA are happy to create it. (this is base money on the RBA's books)

Untitled-1.jpg
 
Last edited:
Oddjob said:
Those in the banking sector know the Govt guarantee is BS.
Click to expand...

Yes it is BS. Government guarantee is just a more palatable way to say the major banks will always get a bailout and therefore there is no need to worry about your account vanishing. Politically they could never say that, so they just made up some BS to calm everyone down.
 
Perhaps having a few spare dollars is the ticket; there's nothing worse than seeing a bargain and not having that cash to buy. :eek:;)
 
You must log in or register to reply here.
Back
Top