How do you find the safest bank to park your cash?  ...
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     jeff_
Member
Username: jeff_
Post Number: 1
Registered: 08-2007Rating: N/A
Votes: 0
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| | Friday, January 11, 2008 - 04:50 pm: |  
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Hello people,
Long time watcher, first time poster of this forum.
i have been reading with interest for the last few months about the increasing likelihood of a recession in the US, and the possible ramifications for the Australian economy.
I have also read some reports that the sub-prime crisis may be worse that the savings and loans crisis in the late 1980's / early 90's .
Can anyone remember if the Australian banks were affected by this back then?
Currently, i am not in the share market, but wish to make sure that my cash is safe in the bank, until i am ready to get back in. But then, the question has to be asked... which bank?... will be most immune in the case of a severe cash shortage.
i know some of you may tell me i'm overreacting, i really hope i am, but if the worst case scenario in the US was to become reality, i would at least want to be sure my cash is in one of the safest financial institutions, and not in one that has the prospect of collapse.
In short, what do I look for when comparing the banks and credit unions for strength in times of economic downturn?
And no... stuffing cash under the mattress isn't an option, at least not until deflation kicks in!
Cheers,
jeff
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lafee
Member
Username: lafee
Post Number: 748
Registered: 04-2003
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Votes: 0
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| | Sunday, January 20, 2008 - 07:49 pm: |
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Jeff,
As long as it is an Australian bank in a standard account you are government guaranteed.
Cheers Lafee
Don't ask an academic if what he does is relevant
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ohkoolnutz
Member
Username: ohkoolnutz
Post Number: 717
Registered: 10-2005
Rating: N/A
Votes: 0
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| | Sunday, January 20, 2008 - 10:55 pm: |
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Your money is at least as safe as in Zimbabwe:
http://www.jdic.org/depositinsuranceschemes.htm
Australia does not have an explicit deposit insurance scheme. It means the government might bail out the bank but by doing so it must print money and devalue every other currency holder and yourself. This might explain why everybody is buying gold. If all banks fail the 'government guarantee' is only useful as toilet paper.
Even if Australia had an explicit deposit insurance scheme you have to watch that your holdings do not go over the insured limit which usually are in place in these schemes.
---
ohk
Lies, Damn Lies and Technical Analysis
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