30 lenders now participating in FLS

[escapeUK]

If I own my house and so does my neighbour and we agree to sell our houses to each other but keep the title deeds on the condition that the money gets repaid in one years time. The house prices will fall and rise but both will still sell for the same...

I lose an asset but have savings...

Money in house prices is savings maybe?

Your examples are absolutely stupid, and I have to wonder if you are either drunk or high?

[minestrone]

Ok let's go over this...



You don't give the bank money, you deposit money in a bank (account).



Banks don't buy houses, they extend credit (not money) to people to buy houses. They don't need your deposit for that necessarily.



The bank has liabilities and financial assets.

I'm trying to present how money flows through the banking system in a karate kid teaching kind of way.

You keep getting a kicking on here because you don't understand wax on has to be waxed off.

[EternalOptimist]

i have cash in hand
i have a current account
i have savings
i have long term savings
i have a car
i have a house

if you add em up, that's how much i have


luckily i dont have any debts

[Robinho]

I'm trying to present how money flows through the banking system in a karate kid teaching kind of way.

You keep getting a kicking on here because you don't understand wax on has to be waxed off.

I "get a kicking" because i have a vague understanding of economics, but most people have absolutely no understanding of economics and get upset when i explain to them they are wrong.

[minestrone]

I honestly have no clue what you are talking about or what this has to do with anything?

Your savings become assets to someone, to think that your money in a house and your money in a bank are different things displays a deep misunderstanding of how banks work.

[Robinho]

Your savings become assets to someone, to think that your money in a house and your money in a bank are different things displays a deep misunderstanding of how banks work.

This has got nothing to do with how the banks work and i am absolutely baffled why you are even bringing it up.

It doesn't matter what your savings are being used for, all that matters is the real value will decline if the government prints money. If you have a house and the government prints money, the value of your house in real terms will remain the same (all other things being equal).

A staggeringly simple concept.

[minestrone]

This has got nothing to do with how the banks work and i am absolutely baffled why you are even bringing it up.

It doesn't matter what your savings are being used for, all that matters is the real value will decline if the government prints money. If you have a house and the government prints money, the value of your house in real terms will remain the same (all other things being equal).

A staggeringly simple concept.

Yes we all save our money in .25 savings accounts.

[Robinho]

Yes we all save our money in .25 savings accounts.

Well i doubt you'll find an account that will beat inflation.

[EternalOptimist]

This has got nothing to do with how the banks work and i am absolutely baffled why you are even bringing it up.

It doesn't matter what your savings are being used for, all that matters is the real value will decline if the government prints money. If you have a house and the government prints money, the value of your house in real terms will remain the same (all other things being equal).

A staggeringly simple concept.

if you consider my wealth

'i have cash in hand
i have a current account
i have savings
i have long term savings
i have a car
i have a house'


they will all vary in value contantly.

some of the variation will be so tiny, it can be ignored.


In the event, the only two worth considering are savings and long term savings imo.
And because I do not understand investment strategy properly, my policy is to keep those two savings levels reasonably low (< 300k) and to spend whats left on great holidays and give it away to the kids

all in my honest opinion

[IR35FanClub]

You do realise that people have savings in their houses?

I have savings in my house, rolls of £20s under the floor boards, and gold bars and a file should the current promisary note/electronic economic system ever collapse!.

Not too much, but enough to pay for transport to a less populated area of the world. A few bags of seeds completes Plan Z. You just have to wait underground with tinned food long enough till all the killing and starvation stops.

I was in the cubs... be prepared ;-)