Financial Meltdown (The World)

avatarless · Post by **avatarless** » 23rd Oct, '08, 00:56

Holy Sh!t! The EUR/USD has fallen 20% in 3 months! I've heard a theory that the euro benefited from speculation funded by dollar borrowing over the past several years, and now this trade is unwinding. Can any bankers here confirm this? For how long and how far will the trend continue? Given the credit situation, this could continue for some time, no?

Morrolan · Post by **Morrolan** » 23rd Oct, '08, 06:28

another day, another bloodbath coming...

Fat Bob · Post by **Fat Bob** » 23rd Oct, '08, 07:06

I'm just about to pay ZAR80k from SGD.

Dinosaur · Post by **Dinosaur** » 23rd Oct, '08, 11:52

BFG wrote:Even so, PK, you can get 6-7% offshore, instant access and no-tax in IoM, CI etc. I have yet to see that level of interest in any account here unless, of course, I'm missing something.

That's fair comment BFG. Can you still get 6 to 7 percent now? Are there minimum requirements?

Though I do get a little nervy about Channel Islands - I don't know - a bit too close to the UK for me.

BFG · Post by **BFG** » 23rd Oct, '08, 15:52

They weren't Icelandic banks , Lichty. CI/IoM branches of UK banks/institutions.

As to the amount - we are/were comfortable. That's what I am worrying about...

BFG · Post by **BFG** » 23rd Oct, '08, 15:55

phuketkaren wrote:
BFG wrote:Even so, PK, you can get 6-7% offshore, instant access and no-tax in IoM, CI etc. I have yet to see that level of interest in any account here unless, of course, I'm missing something.
That's fair comment BFG. Can you still get 6 to 7 percent now? Are there minimum requirements?

Though I do get a little nervy about Channel Islands - I don't know - a bit too close to the UK for me.

We just got a statement - 6.4%. I think the minimum was GBP50k or so - it was a long time ago!

I guess any financial institution anywhere is shaky....

Fat Bob · Post by **Fat Bob** » 23rd Oct, '08, 16:01

PK: what do you mean "a bit too close to the UK"?

If you're worried about the UK tax man finding out about what you are earning, then yes, you are right, the UK taxman will find out what interest you are earning anywhere in the EU and any other places that follow the EU rules (the Channel Islands and Isle of Mann, for instance). So then you have to worry about whether he's going to tax you or not.....all depends on how much you earn in interest or other UK sources of income.

Your income has to be above £7k/year, even as a non-resident.

If you're worried about when you move back to the UK (if that is your final plan) then the tax year before you move, take all the money from the near-UK or EU-ruled bank and put it in the Cayman Islands/Bermuda/Singapore.

Simple.

azzam · Post by **azzam** » 23rd Oct, '08, 16:03

Gosh, so many dollars, so much to worry about.

BFG · Post by **BFG** » 23rd Oct, '08, 16:09

Fat Bob wrote:PK: what do you mean "a bit too close to the UK"?

If you're worried about the UK tax man finding out about what you are earning, then yes, you are right, the UK taxman will find out what interest you are earning anywhere in the EU and any other places that follow the EU rules (the Channel Islands and Isle of Mann, for instance). So then you have to worry about whether he's going to tax you or not.....all depends on how much you earn in interest or other UK sources of income.

Your income has to be above £7k/year, even as a non-resident.

If you're worried about when you move back to the UK (if that is your final plan) then the tax year before you move, take all the money from the near-UK or EU-ruled bank and put it in the Cayman Islands/Bermuda/Singapore.

Simple.

As Singapore and the UK have a reciprocal tax arrangement, all the cash that I have put offshore has already been taxed. The interest goes into another account. So far so good...

Dinosaur · Post by **Dinosaur** » 23rd Oct, '08, 17:27

Fat Bob wrote:PK: what do you mean "a bit too close to the UK"?

If you're worried about the UK tax man finding out about what you are earning, then yes, you are right, the UK taxman will find out what interest you are earning anywhere in the EU and any other places that follow the EU rules (the Channel Islands and Isle of Mann, for instance). So then you have to worry about whether he's going to tax you or not.....all depends on how much you earn in interest or other UK sources of income.

Your income has to be above £7k/year, even as a non-resident.

If you're worried about when you move back to the UK (if that is your final plan) then the tax year before you move, take all the money from the near-UK or EU-ruled bank and put it in the Cayman Islands/Bermuda/Singapore.

Simple.

No, don't get me wrong. UK taxman and Singapore taxman (where I was working until end of last year) know where I am and UK tells me I am non-resident , and I'm all paid up with IRAS

. My Channel Islands "nervousness" is purely emotional and without any fact basis - as I have no assets, earnings from UK or EU it seems crazy to me that I should put money somewhere halfway round the world where I don't have any intention going back to in the future (even if I had to leaveThailand for some reason). I'm also not sure "officially" if I could bring in "untaxed earnings" (potential Channel Islands interest or other offshore) into Thailand on the type of Thai visa I'm here on - it do get a bit complicated sometimes.

BFG · Post by **BFG** » 23rd Oct, '08, 18:39

PK you have a PM...

Fat Bob · Post by **Fat Bob** » 23rd Oct, '08, 21:28

Ah, emotions! Always a good thing to use when you think about money!

Hmmm....bet a credit card account or even a current account in Channel Islands/Isle of Mann where you can withdraw cash at the ATMs in Thailand.....not sure if it would work on a long term, but maybe.....maybe not!

avatarless · Post by **avatarless** » 23rd Oct, '08, 22:17

Another question for the bankers on this board:

We are currently experiencing a dollar rally and deflation. At some point, all that money the Fed is printing has got to make it's way into the real economy and reflate everything. Sterilization schmerilization. What are the forward indicators I should be watching for? The credit markets are finally thawing, but I don't see anything resembling an increase in the velocity of money- quite the opposite. Will reflation come from the demand side for commodities or from the resolution of the CDS market... ? I really have no idea... Thanks in advance.

Aliya · Post by **Aliya** » 23rd Oct, '08, 22:53

Gosh look what happened 100 years ago...

http://en.wikipedia.org/wiki/Panic_of_1907

Fat Bob · Post by **Fat Bob** » 24th Oct, '08, 05:47

avatarless wrote:Another question for the bankers on this board:

We are currently experiencing a dollar rally and deflation. [blah blah] Thanks in advance.

You're asking the very people that helped put us into this mess for more advice? Are you nuts? See my post above!

Aliya, saw that too......interesting. So really we're just correcting to 1907 times then?

avatarless · Post by **avatarless** » 24th Oct, '08, 09:41

FB,

They're more likely to know than not. Hank Paulson, who led GS in creating structured debt instruments, began shorting the very same instruments in 2006. It can't be a coincidence that in the same year he also left GS to take a job running the US Treasury Dept! He knew precisely what was going to happen and so do some of the members of this board!

Aliya · Post by **Aliya** » 24th Oct, '08, 09:48

Gosh I saw Greenspan on the tellie this morning admitting he had placed too much faith in the various financial institutions not to get themselves into the shite. Interesting he has admitted this, does this mean he is the fall guy and will resign soon?

Burbage · Post by **Burbage** » 24th Oct, '08, 09:50

Has greenspan not already gone?

Aliya · Post by **Aliya** » 24th Oct, '08, 09:54

Well he also said that the subprime mortgages were worthless which was a worry given the financial bail out is to in effect buy these off FM and FM. He did basically insinute that FM and FM were to blame for the subprime mess.

avatarless · Post by **avatarless** » 24th Oct, '08, 09:55

Greenspan has been gone for years. Easy Al, they called him, for all the money he printed. I guess you've gotta him a little credit for having the integrity to admit he was wrong.

Dinosaur · Post by **Dinosaur** » 24th Oct, '08, 10:22

BFG wrote:PK you have a PM...

Went into PM and it said I had a new message but it had been withdrawn from BFG. Can you resend it? Cheers

Addadude · Post by **Addadude** » 24th Oct, '08, 11:44

azzam wrote:Gosh, so many dollars, so much to worry about.

That would mean I have very few worries then...

slinky · Post by **slinky** » 24th Oct, '08, 11:50

avatarless wrote:Greenspan has been gone for years. Easy Al, they called him, for all the money he printed. I guess you've gotta him a little credit for having the integrity to admit he was wrong.

Fat lot of good it does anyone now that the damage is done though

Dinosaur · Post by **Dinosaur** » 24th Oct, '08, 17:58

phuketkaren wrote:
BFG wrote:PK you have a PM...
Went into PM and it said I had a new message but it had been withdrawn from BFG. Can you resend it? Cheers

BFG thanks for yours. I just took a look at a Channel Islands account online. Yeh it's interesting - the rates are only a bit higher than we're getting in Singapore for GBP and not so flexible with what you can take out and where. I think we might have probs with terms and conditions, application forms - jeez, I'd forgotten about all this stuff you get in the EU, UK. Copy of utilities bill - are they kidding? in Thai???

BFG · Post by **BFG** » 24th Oct, '08, 19:13

PK - send them a Thai utility bill - just for a laugh....

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