Unfortunately the same goes with any investment these days . You invest in the foreign banks , your funds covered to 1000,000 , again this is not 100% guaranteed. What happens in a black swan event , all the banks are interconnected if one fails, 5 or 6 will fail , Gov/EU cannot afford to bail them out as well as the Depositors . The banks that are "too big to fail" will will be made whole first and then what ever is left over will be paid to the rest, which could be zero .
You also have the issue of a 'Bail In' where depositor funds can be used to pay for the Bank Debts, all depositors agree to this when depositing the money in the bank , example being Cyprus banking crisis in 2013. Also if a bank goes bankrupt on a Monday you wont get your money lodged into your account on Tuesday , you could be waiting months or even years and best of luck trying to deal with a Bank outside Ireland speaking a different Language.
Pensions are the same. Biggest Ponzi scheme ever, pensions are taking more risks dealing with financial investments they do not fully understand with your money to ensure better returns , lots dont work out and pensions loose billions overnight . This in turns makes the pension providers take more risks such as the problem with the UK Bond Marked back in 2022 that nearly bankrupted a lot of Pension Companies. Also young people investing in Pensions now wont have enough young people to help pay their pension when they retire.
Also the banks have to deal with the Commercial property time bomb, banks have given out large loans for commercial property which are now either hugely under performing or the purchaser of the commercial property have walked away and are not repaying the loans.
Regards, Jumper1
