Closing down my Lloyds TSB account

They have just bailed Lloyds TSB and a couple of the other big names out to the tune of millions. They are calling it nationalising.

If everyone pulls out all their cash, then the whole system will fold. The banks will be forced to close.

I can understand your sentiment DOA, and the situation is serious, but this is just going to turn into a mad panic. This country is pretty well placed to weather the storms because we have some pretty heavy duty rules in place. Things may get a tad wobbly, and the pension funds and stock market could well hit zero, but money in ordinary current or savings accounts should be okay.

The situation in Argentina was dreadful, but at that time the rest of the world weren’t involved. Because the current crisis has hit the American dollar, the rest of the world is also placed in a precarious position.

The Western economy is founded on sustained growth, but growth cannot be sustained forever. At some point the “growth” has to slow down or stop, and then everything goes into recession.

I just did a trawl and found this article, it wasn’t the one I read some time ago, but it pretty much explains the current situation even though this was published a year ago.

http://business.timesonline.co.uk/tol/business/economics/article2719227.ece

Sorry if this is not telling any of you anything new.

@dead_on_arrvial wrote:

Well pete….

Its funny you should talk about small business loans and overdrafts…..

I know of at least 5 small business that lost there bank overdrafts this week. There a few that have been turn down for bank loans too.

If your in trouble with your mortgage, the banks will help you by running up has many charges as they can and then take your home away.

What does surprise me is why the government feels banks will be more “willing” to lend out cash to hight risk small businesses after losing billions on similar loans?

The problem we all face on a personal level is if our banks fail over nite.

You could’ve woken up on pay day and found your bank was bankrupt.

This means your wages are locked up for the next 6 months until you can get your claim paper work sorted out.

The only cash you have in the house is a few penny’s in the kids piggy bank.

You can’t fill up your car, your debit card is void, but don’t worry your car insurance is void too. ( Your direct debit didn’t get paid this month.)

Your company don’t have a working account any more, there bank closed too. (So you cant get paid next month has well).

The only food you have in the house is a tin of bake beans, (but don’t worry your gas, water and electric direct debit didn’t get paid too so you can’t cook anyway).

You could ask your wifey for a small loan, but she’s in the same boat too.

You can’t go down the dole office and ask for “help” because of the government benefit rules.

And don’t worry if the house burns down, its not insured any more and worthless anyway.

I know what your thinking……. all that money you saved in your high interest account will save you. Wrong under the government rules its 50k compensation per bank, not account. With only a few banking groups, the chances are your account in the building sociality is part of the same banking group.

So within 28 days of your bank going bankrupt, your sitting in a dark cold room eating cold bake beans.

Feels me with confidantes just thinking about it…………….

The government doesnt feel the banks will the government says the banks will. The problem was with inter bank loaning not loaning to firms or individuals and as the government money is bailing out the two banks the government says you will the other banks dont have much choice but follow along or lose business and the money is a loan which will be repaid with interest. This is a rescue package and the banks wont fail overnight.