Just a quick question to help my understanding of the current financial crisis.
Most asset classes have taken a hammering in recent weeks. Equities, commodities and for a longer time frame property prices.
My understanding is that many investors are pulling out of other asset classes and placing their money in "cash" at least until the current volitility passes.
My question is does putting your money in "cash" mean on deposit in a bank?
Also many banks are offering attractive interst rates eg. 8% over 18 months. What asset classes are the banks investing in to earn such high returns. Or are they simply lending to other financial institutions caught in the credit squeeze?
Surely there is trillions of dollars of investment searching for a more permanent home at the moment and it is only a matter of time before some asset class comes into vogue and is driven up by sovereign funds, pension funds, individual investors etc.
My own thoughts are that we may see a bubble in the green energy and clean technology sector over the coming years as both US presedential candidates are making noises about energy supply being integral to US national security and for the countries who signed up to Kyoto, Ireland included carbon levies will start to bite.
Most asset classes have taken a hammering in recent weeks. Equities, commodities and for a longer time frame property prices.
My understanding is that many investors are pulling out of other asset classes and placing their money in "cash" at least until the current volitility passes.
My question is does putting your money in "cash" mean on deposit in a bank?
Also many banks are offering attractive interst rates eg. 8% over 18 months. What asset classes are the banks investing in to earn such high returns. Or are they simply lending to other financial institutions caught in the credit squeeze?
Surely there is trillions of dollars of investment searching for a more permanent home at the moment and it is only a matter of time before some asset class comes into vogue and is driven up by sovereign funds, pension funds, individual investors etc.
My own thoughts are that we may see a bubble in the green energy and clean technology sector over the coming years as both US presedential candidates are making noises about energy supply being integral to US national security and for the countries who signed up to Kyoto, Ireland included carbon levies will start to bite.