Thursday, 4 December 2008

The silent type

Just spotted this lightweight, heavily anicdotal piece about how the public are reacting to risk:

Where Safety-First Investors Are Putting Their Money

Figures released this week by the Bank of England suggest we could be seeing the beginnings of another bank run – as depositors head into the safest investments they can find. Except this time, the consequences could be a whole lot nastier. Because it’s not just one bank that has lost the trust of its customers. It’s the entire British banking industry....

No queues are forming outside any branches. No CEO memos are being read out to anxious customers. But, behind the scenes, depositors have started fleeing for the exits…

I’m reminded of a conversation I had with a friend two months ago. He was telling me he’d just that day transferred the bulk of his money into his wife’s account. Not only that, his mother and his sister had done the same.

“I’ve engineered my own mini bank run,” he told me. “I’m not proud, but it’s worth it for the peace of mind.”

What are you doing to protect your money?

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