“Bigger Systemic Risk” Now Than 2008 - Bank of England
Sam Woods’s speech last week suggest that banks and building societies are most likely unconcerned with the risk these new borrowers bring to the system.
In May, the British households borrowed £1.7 billion in May, higher than the £1.4 billion that forecasters expected and the £1.438 billion borrowed in April. This rapid growth of consumer credit will pose a risk to banks when the economy falters and borrowers struggle to repay the loans.
These warnings from the Bank of England and the PRA just serve to remind us that there is little in the financial system which is not exposed to the highly speculative and risky lending practices of those charged with looking after our savings and investments.
Even if some banks are listening to the warning cry of the regulators, the level of debt in the financial system in the UK and most western countries is completely unsustainable.
Ultimately all of the above means that your personal finances and your savings held in deposit accounts are at risk. The risk is that when authorities move to bailout the next bank who enjoyed the punch a bit too much, your savings may be confiscated in bank deposit bail-ins.
Why do we like physical gold and silver? Because when you buy it in the right way, you own it outright.
When you own physical gold and silver coins and bars which is allocated, segregated and in your name, it cannot suffer a 'haircut' or be confiscated by bankrupted financial entities. Bullion coins and bars are yours and carry no counter party risk if you take insured delivery or store in the safest vaults in the world.
Bank tackles lenders balance sheet trickery - FT Adviser
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Gold Prices (LBMA AM)
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