Stockmarkets are collpasing and US bansk are to be nationalised

[ABetaDad]

This may not seem important but the US stock market just hit the level it was a decade ago.

Strong rumours that the US is going to nationalise some or all of its major banks over the weekend and Gold has just gone up above $1000 / oz.

How are you planning to cope in a total global financial meltdown?

Does your family income depend on financial markets? Where are your savings? Are the banks safe? What has happened to your pension?. Is your job safe?

How would you survive a Depression like the 1930s. Its not just about house prices anymore this is turning into a global catastrophe and the Govts of the world do not know what to do.

In 20 years of trading markets I have never seen anything like this.

2 well paid safe jobs and public sector pensions here, thank god, I knew being a teacher would come in handy sooner or later

nothing about this in the news though?

Yes dh a civil servant and I'm one on career break and affording it all okay. I really feel for all those people who are in a dire situation.

We have had half of our savings in the US (in stock) and half here (in cash). The value of our stock has dropped (although not too bad given that we have always picked ultra boring stocks). The exchange rate drop has meant that the overall pound value is about the same.

We don't plan to have any major events over the next few years (we won't move house or retire), so believe that we have no reason to be particularly gloomy.

Our stocks are safe ones, so will rise again.

I'm just ignoring it, in all honesty. At the moment we both have jobs and mine is completely recession proof so we won't starve!!.

Duckyfuzz - in Ireland they have just put a levy on public service pensions (not sure of the exact details). Nothing is really as safe as you think it is.

I'm feeling quite lucky at the moment. DH and I are naturally quite risk and debt avoidant. So when times were good we didn't make the profit we could have had we been willing to re-mortgage and use the money to play the stock market, but on the other hand we were debt and mortgage free and only had moderate share holdings when things went sour. Luckiest of all we were planning to move back to Dublin where the property prices were even more over-inflated than London and now that property prices there are practically in free-fall we should be able to afford a much better house when we do move. Although that move may be delayed a little because DH probably won't be able to get work over there now.

Dh and I are both public sector with public sector pensions. Our endowment policy on a little part of the mortgage is shot to hell right now but we've got over 30 years to go before retirement so I'm not too panic stricken. We also don't need to move house - thank the lord we were able to move last year. I wish the Bank of England would stop putting interest rates down though - it doesn't seem to be doing anything and it's making me nervous! Savingswise - we don't have much and I'm comfortable with where it is.

Recessions happen in every economy and as history has shown, the recession will end. Both DP and I work in the public sector and so far things have been ok. We sold our house last year before the housing slump and paid off all our debts. We are now renting and are looking to buy so things have worked out in our favour...for the moment - but hey things can change!!

I have a job in a world wide known company (though not many people know what we do!)
People are being made redundant, but not in my particular sector, and it is a small % of the work force.
At the minute, we seem to be doing okay so I think my job is okay for a bit, although nothing is set in stone, so its always a worry given that everytime you turn the news on, companies are getting rid of loads of people. Pension wise, it seems secure. I'm 27 so not drawing it any time soon, so plenty of time for it to recover

DH works in a company that has only just been started! He and his boss (the company owner) install lifts. Obviously I think this is risky as if all the buildings stop then nobody will be installing lifts etc. They have work for a fair while, but we're waiting to see how it pans out.

We have no savings that would make a difference, just a few hundred quid etc, nothing of any great value.

As for mortgage / debt... oddly, we're now paying LESS than we were this time last year, not through re-mortgage but we came off our fixed interest in Jan, and the interest has been reduced three times now. So rather than 5.9% were paying 4.something%

If Dh and I lost our jobs, we'd get rid of the house and move in with my parents. They own their home, neither are working, but they always kept the big family home "just in case" and have enough room for me, DH, DD, my two sisters and their partners to ALL move back in with them iyswim. So we'd get rid of our home and posessions, and start up again when things stop looking so bleak. If the worst came to the worst, that is.

Interesting, I started a similar thread on another board asking if we would ever get to a situation where we would be unable to access our wages because of a banking collapse and how we would all be paid if this happened.

I wonder how we would cope. Apparently all 'savings' under a certain amount are protected, but what if there was a meltdown?

I have no savings but I would wantt o have access to my monthly wage.

That's a good point beanie - we take our wage for granted don't we. I believe public servants in Zimbabwe or Iraq are jolly lucky to see a wage from 1 month to the other

Oh, good lord. Here we go again. Market traders are like toddlers, honestly.

Business writers tell us that "stocks fell due to investors fears about the slowdown lasting longer than expected" - I don't think there's any such rational thought going on.

Stocks fell because some traders went "Yipe! The sky is falling!" And in a steaming horde, the rest followed. These volatile times are characterised by high emotion, panic selling and euphoric buying.

What flipped me out, actually, was contacting my mortgage company to day and being told by the adviser that they'd put all rates with < 25% deposits UP! A full percentage point interest rate drop last week, and they put the rates up!

I know that it's the LIBOR and not the BOE rate that matters, but still.

Anyway, I'm an optimist. In the middle of a crash, prices are historically low. NOW is the time when you must keep contributing to your pensions and investments - because anything invested now is going to have a disproportionately large effect on your total investments.

it's because they are greedy and can get away with it dadonahottinroof. I think that's disgraceful actually (putting the rates up like that). So they FINALLY listen to their risk department, err a few years too late .

What irks me about this whole downturn is that
a) anyone who can get away with it (like utilities, train services) put up their prices because they can (essential services) and
b) we have to stomach it

while everyone else is lowering prices and normal businesses are struggling.

I also think we've got into a nasty fear cycle. Our business is not doing too badly but everyone is taking precautions 'just in case' (which is no bad thing but also fuels itself iyswim!).

Everybody needs to go out and spend, spend, spend. That should get things back on track.

Goodness where I am there are jobs beng cut in the public sector, quite a few are going this does make me a little nervous as so many areas are not safe jobwise. No news of budgets yet for the year to come and wondering if there will be enough to keep people or have to let them go?

I envy those of you that have safe jobs

People may have a safe public sector job but will you get paid?

California almost had to stop paying teachers, policemen, firemen because it ran out of money a few weeks ago.

All public sector employees in California are being forced to take a day off without pay.

Feeling like being a ray of sunshine this evening are we abetadad?

Does anyone think we might go back to the short weeks that we had in the 1970s? I remember hearing about it at the time (I was very young) and thinking how great it sounded to have all that extra free time and wishing the schools would go to short weeks too.

Maybe 'Barter' will come back

Personally I'll be popping out tomorrow to bag a wooly mammoth and lay in a large amount of diamonds - just in case.

If the worst comes to the worst we will go bankrupt.

Would there be a depression like the 1930's with the benfits people can recieve in this country? Would the benfits system collapse? Would the NHS collapse?

I've said for a while we will probably end up with things like they were in the 70's.

There is a recession every 10 years - this one is just a bit late comming.

Things will get stabilise - they always do. And many of my friends are making huge savings on their mortgages at the moment. This will encourage people to spend more and then tbe economy will get back on track.

K999 - are you channelling Gordon Brown?