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The official "ASX is tanking!" panic thread

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China is doing everything to get US embroiled in North Korea -

North Korea has hit back at threats of "fire and fury" from Donald Trump, branding his warning "a load of nonsense". It also issued an update on plans for a missile strike near the Pacific territory of Guam, saying preparations should be ready in a matter of days.
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The new sanctions on Russia will have positioned Putin behind China to disrupt the US and most likely the rubbish economic numbers that China releases will unravel soon so they need the distraction and disruption and third party to blame.
Even without all that the valuations in the US Markets and in Aus property relative to inflation and wage stagnation would make one want to get out for the moment, or get short :D
 
U think it's worth putting our money (savings) in different bank accounts? what might happen if the asx and world stock markets crashed?
 
grah33 said:
maybe i should split it into cba, anz, and something else. it's not much

but with banks failing, what might happen? maybe they'll restrict how much money we can take out or something..
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Govt guarantee is $250k per major bank, that's all you can do.
I have no sharemarkets investing skills and it's been tanking for a while anyway. It's a bit scary at the moment, better safe than sorry.
 
MrBurns said:
I have no sharemarkets investing skills and it's been tanking for a while anyway.
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Tanking?

The All Ords has been going sideways yes but I wouldn't say it was "tanking" since it's within a few % of the post-GFC high.

That said, it has never regained the high of a decade ago and does look pretty sick compared to the US market in particular.
 
grah33 said:
u mean if i got less than 250 k the bank should let me take it all out if disaster does indeed strike?
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In theory at least the Australian Government guarantees deposits of up to $250K per bank so your money is safe so long as government honors that guarantee and can find the money to pay up.

In practice if some minor bank such as Mystate went bust (hypothetically, I'm not saying they're in trouble etc it's just an example of a relatively small financial institution) then no doubt government could and would pay up.

But if we're talking about one or all of the "Big 4" banks going broke then all hell will break loose in Australia at that point and I wouldn't be counting on any guarantee from anyone. Just about every business in the country would have at least some problems and the economic consequences would be severe indeed. No chance government is going to paper over the cracks if they're really that wide. That's end of the world as we know it "guns and tinned food" type stuff really.

Personally I'm not expecting the big banks to go bust although statistically we're long overdue for a recession. We'll get one at some point and at least half the working age population has no prior experience of such a situation so they're in for a rather massive shock when it comes.:2twocents
 
MrBurns said:
Govt guarantee is $250k per major bank, that's all you can do.
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Mr Burns, you may want to investigate this further. My understanding is the big 4 banks are guaranteed up to $20B each, that does not cover all or even the majority of their deposits.

You will more likely see if the bank was to fail, get 50 cents back in the dollar.

Payouts of deposits covered under the FCS are initially financed by the Government through a standing appropriation of $20 billion per failed ADI
 
What the go if you have an offset loan and the bank has a bail in? Would they not want thier loans covered first?
 
satanoperca said:
Mr Burns, you may want to investigate this further. My understanding is the big 4 banks are guaranteed up to $20B each, that does not cover all or even the majority of their deposits.

You will more likely see if the bank was to fail, get 50 cents back in the dollar.

Payouts of deposits covered under the FCS are initially financed by the Government through a standing appropriation of $20 billion per failed ADI
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This is all I know....

https://www.moneysmart.gov.au/managing-your-money/banking

Government guarantee on deposits
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as your bank, building society or credit union. This means that this money is guaranteed if anything happens to the ADI.

The cap applies per person and per ADI. So if you have $250,000 with one ADI and $250,000 with another, then both of your deposits are guaranteed. If you have more than $250,000 with one ADI then only up to $250,000 is guaranteed.

Some ADIs operate multiple brands or may offer deposit accounts under more than one brand name. However, they are still part of the same ADI. The guarantee covers deposits per ADI, not per brand name. For example, if you have multiple deposit accounts with brands that are owned by the same ADI, the guarantee will only apply to $250,000 of these funds in total. If this concerns you, make sure you know who the ADI is that you bank with.

In the case of joint accounts, each account holder is entitled to an individual guarantee up to $250,000.

The guarantee applies to all ADIs incorporated in Australia, including Australian-owned banks, foreign subsidiary banks, building societies and credit unions. To check which banks are covered by the guarantee see the Australian Prudential Regulation Authority's list of ADIs.

The types of accounts covered by the guarantee are: savings accounts; call accounts; term deposits; current accounts; cheque accounts; debit card accounts; transaction accounts; personal basic accounts; cash management accounts; farm management deposits; pensioner deeming accounts; mortgage offset accounts, either 100 per cent or partial offset that are separate deposit accounts; trustee accounts; and retirement savings accounts.

For more details see APRA's Financial Claims Scheme website.

If you see this seal on letters or brochures relating to your account, you'll know that your account is covered by the guarantee.

This is an example only - you may see it in other colours. Your financial institution does not have to use or display the seal. If it chooses not to display it, that doesn't mean your account is not guaranteed.

See the ASIC website for the rules on how the seal can be used.

If you are not sure whether your account is guaranteed, ask your financial institution.
 
The devil is always in the detail.

Govnuts don't always want to tell the truth.

The above information is correct with exception that each ADi is only guaranteed to an amount, at least someone had some sense within the govnuts, but as it is hard to determine how many cents in your dollars are guaranteed based on a limited guarantee to each ADI (bank), better not confuse the public, cannot have a bank run or worse, more people moving the assets in to property.
 
When will this thread finally come back to life?
Remember the fear of contagion over Greece GDP 195B
Well Venezuela GDP of 404B has just defaulted. Euro is splitting up and Trump is President.
Doesn't anybody care anymore!?:D
 
notting said:
When will this thread finally come back to life?
Remember the fear of contagion over Greece GDP 195B
Well Venezuela GDP of 404B has just defaulted. Euro is splitting up and Trump is President.
Doesn't anybody care anymore!?:D
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Truly amazing how polarities have reversed now that world markets have formed a dependency on palliative care.
 
notting said:
When will this thread finally come back to life?
Remember the fear of contagion over Greece GDP 195B
Well Venezuela GDP of 404B has just defaulted. Euro is splitting up and Trump is President.
Doesn't anybody care anymore!?:D
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Meh, people are still buying cokes, eating salmon, visiting Disneyland, having honey on toast, using ketchup, buying cars, having hot showers, charging phones, flying in planes etc etc etc.

So I am not worried, lol
 
notting said:
When will this thread finally come back to life?
Remember the fear of contagion over Greece GDP 195B
Well Venezuela GDP of 404B has just defaulted. Euro is splitting up and Trump is President.
Doesn't anybody care anymore!?:D
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I know right?

Remember when Greece defaulting was scaring the market all over the world.

Greece is still the problem. Now came more real wars famine and economic blockades in the Middle East, expanding into Africa. There's S.America, Asia Pacific; freaking Russia screwing with American democracy by spending $100k on FB ads...

The new normal or the media is too focus on the spate of sexual assaults and rape by practically every rich and famous white dude it seem.
 
Value Collector said:
Meh, people are still buying cokes, eating salmon, visiting Disneyland, having honey on toast, using ketchup, buying cars, having hot showers, charging phones, flying in planes etc etc etc.

So I am not worried, lol
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That's a very specific list of goods and services you own shares in :D
 
luutzu said:
That's a very specific list of goods and services you own shares in :D
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Yeah it was modelled after my own portfolio if you didn't guess, I could of added more products and services, But I thought that was enough to get my point across, hahaha


"Fidelity Fiduciary Bank" is one of my all time favourite investment songs (not many investment songs exist), and when I sing along to in in the car or shower, I change the words to list the businesses I invest in, corny but I am a bit of a weirdo, lol.

At the 50 second mark is the part where change the words

 
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Value Collector said:
Yeah it was modelled after my own portfolio if you didn't guess, I could of added more products and services, But I thought that was enough to get my point across, hahaha


"Fidelity Fiduciary Bank" is one of my all time favourite investment songs (not many investment songs exist), and when I sing along to in in the car or shower, I change the words to list the businesses I invest in, corny but I am a bit of a weirdo, lol.

At the 50 second mark is the part where change the words
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Yea, to say people still shaves with Gillette's, breaky with Heinz baked beans or Capillano's Manuka on toast while re-watching Star Wars in preparation for the Last Jedi... would go a bit far.

I never realised that that was a song about investing. I've always thought the old banker was there to show how a person who cared too much for money ends up wishing he'd spent more time singing in the rain or something.

Yea, a bit of a weirdo I'd say. But at least you didn't take financial advise from Ebeneezer Scrooge. So there's hope yet.

I remember watching A Christmas Carol every Christmas and once, for only a second, thought he went a bit far with throwing away all the debt. Maybe reduced the interest rate or go through case by case... They're not all Timmy's dad's situation you know :D
 
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