Hi all,
I have been quite pessimistic regarding the global economy for a few years and believe rough times are ahead, so last year moved 50% of my net worth from US equities to cash. Most of this is currently resting in a Northern Rock Demand Online account. My question is: if the UK (or Europe, or the entire western world) sees a recession, a subsequent rise in unemployment and consequently a rise in foreclosures, how badly would Northern Rock be hit? I have heard that the majority of its business is mortgages. Could an ongoing credit crunch adversely affect my savings there?
If we see a bout of deflation for a few years and cash is king, where is the safest place to keep it?
-Paul
I have been quite pessimistic regarding the global economy for a few years and believe rough times are ahead, so last year moved 50% of my net worth from US equities to cash. Most of this is currently resting in a Northern Rock Demand Online account. My question is: if the UK (or Europe, or the entire western world) sees a recession, a subsequent rise in unemployment and consequently a rise in foreclosures, how badly would Northern Rock be hit? I have heard that the majority of its business is mortgages. Could an ongoing credit crunch adversely affect my savings there?
If we see a bout of deflation for a few years and cash is king, where is the safest place to keep it?
-Paul