Cash, what to do with it come negative interest rates?

[Sid]

Currency speculation over Brexit?

Plenty of experts on that!

 

[Anymulewilldo]

Stuff it in your mattress, won’t go negative interest in there! I’ve told the wife that the moment it goes negative our joint savings are coming out of the building society and I’m putting that new shed up!

 

[fgc325j]

Land and classic tractors are good shouts........but what if you need the cash back in a hurry ?

My view is that with classic cars/tractors/machinery you need to feel flush and start thinking " i could do with a new Hobby".
I remember back with both the 2000 and 2008 crash, when money got tight, expensive hobbies went out of the window. I know
someone who, pre-2008, made some decent money flogging gee-gees to women who thought it would be a good idea to
start riding. As my friend said " you get one to buy, and then 3-4 of her friends want to join in", but after 2008 - no business
at all.

 

[Devil's advocate]

Remember collecting xmas trees from Arthur Daley type.

His house had a washing line through it & all fan heaters on.

He was drying £10 notes that got wet when his underfoor safe was flooded by faulty washing machine.

 

[davieh3350]

Build an insulated workshop, with plenty of natural light, 3 phase electric and underfloor heating then rent it to me for a modest fee.

 

[Clive]

My view is that with classic cars/tractors/machinery you need to feel flush and start thinking " i could do with a new Hobby".
I remember back with both the 2000 and 2008 crash, when money got tight, expensive hobbies went out of the window. I know
someone who, pre-2008, made some decent money flogging gee-gees to women who thought it would be a good idea to
start riding. As my friend said " you get one to buy, and then 3-4 of her friends want to join in", but after 2008 - no business
at all.

BIG plus for classic cars and tractors is they are GCT free

 

[Clive]

Prepare for inflation which will surely come in a few short years.

few years? - i think its already happening

good reason not to have cash or savings

buy assets

 

[S J H]

Gold

 

[Tubbylew]

How long will we have that option though?

Surely this is the perfect time to ban cash in the name of "public health"

Coronavirus: COVID-19 virus can survive for up to 28 days on mobile phones and banknotes, study suggests

Australia's national science agency CSIRO found coronavirus was "extremely robust" at 20C (68F), or room temperature.

news.sky.com

I'm not sure banning cash will be particularly useful tbh. It would just end up pushing people into gold or virtually unregulated cryptocurrecies, on thing is for certain they'll have to tread carefully to avoid a run on savings accounts, I fear it'll just add fuel to the property boom and the bust will be catastophic when it happens, maybe thats what they want, because at least the money will be somewhere they can tax? Who'd have thought cows may be a better place to put money than the bank. Worlds gone mad.

 

[2wheels]

Prepare for inflation which will surely come in a few short years.

Hi will probably be dead by then

 

[colhonk]

Do you think Mr Brown has anymore of that cheap Gold left he could sell me?

 

[Clive]

Gold

6 months too late !

 

[teslacoils]

Negative rates seem to be used because central banks are desperate and have run out of options, not because they work really well

This.

They have options. But they aren't pretty is they need to get money out of houses / pension pots / early retirees and into things that make us productive. Given the bent for creating jobs that either a) don't use productivity as a metric ie all government jobs or b) create or police rules that make folk less productive, you can see why the graph of house price inflation Vs productivity in the UK is so appalling.

The can has been kicked down the curb as far as it can go now.

 

[4course]

too late for the gee gees they doubled in price during the early summer ,now winter is coming a fair number will be coming back on the market but they will have been ruined by cupboard love and total lack of equine skills by their new owners and thus be worthless so the current owner will hang on thus compounding the problem, its a cycle that happens though got to admit last march I did not expect the furlough effect

 

[mx110]

think I'll invest in a new mattress this ones giving me a bad back

 

[Clive]

The impact of negative interest rates might not be that huge, the aim is to encourage banks to lend more, not to penalise savers and businesses, so they will come with rules to ensure most accounts don't see negative rates (besides, in real terms most bank account interest rates are already negative as they are below inflation). However, no one will get paid to borrow money as banks will still charge fees.
Negative rates seem to be used because central banks are desperate and have run out of options, not because they work really well

deflation is the danger and to be avoided at all costs - its a consequence of printing too much money (a lot has already been printed !)

negative interest rates are a tool to keep people spending and keep inflation writing off debt

 

[7610 super q]

Gold

Always believe in your soul

 

[DrWazzock]

Leave it in the bank. Sweep up worthless assets when the crash comes.

 

[lloyd]

Go to Las Vegas and have the time of your life .

 

[fudge]

I am going to make a substantial donation to the Conservative party. I reckon I would make an excellent contribution to the House of Lords.