Re: Banking crisis - Short term loan to a director to qualify for 50K guarantee.

PeterSaxton wrote:
On 14 Oct, 08:03, Nick <Nick.S...@xxxxxxxxxxx> wrote:
PeterSaxton wrote:
You can pay less than £100 for a years rental.
Don't you just go to the bank and take the money out?
Actually no you don't. Can I have 1OOK yes sir would you like that in
10s or 20s, its not quite like that.

What is it like?

You have to arrange upfront and often banks don't have that kind of cash.


You would need to enter the information on P11Ds.
Why only do it for a few weeks?
As I explained, I was worried about the possibility of a banking
collapse happening.

Are you not aware of the panic in the banking community? This was not a
business as usual operation. As it is things look a lot rosier today
than they did on Saturday.

There was a drop in share prices caused by some assets not being worth
what people thought they were worth. If there were not enough sensible
people in government and the investment community then your actions
would not have helped you. If there had been blind panic then this
would have lead to the fall of all kind of order, no government could
have paid out on guarantees, money would have been worthless,
valuables would have been stolen, disorder on the streets, riots, etc.

As it was, most people didn't panic and life carried on as normal!
Personally, I went to the bank yesterday and today and paid cheques
in. It all looked pretty normal to me.


It is common that people do not fully understand or appreciate that exceptional things might happen, they think things will carry on as normal, because normally they do.

However throughout history exceptional things have happened, economic disasters, natural disasters, pograms etc. These things don't happen every day but they do happen. Even though unlikely it can still be prudent to seek protection even if only partial. You understand insuring your house don't you?

The source of the concern was not a fall in the stock market but a concern about a collapse of the banking system.


.

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