If Not In A Bank, Where Else To Put Your Savings ?

It seems that the trust in " systems " is dwindling.

A lot of people are now worrying that this Cyprus Affair is in effect a sort of blue print of things to come. In the Euro Zone, that is. Whether true or false, is besides the point. It is the thought that it might be, that will fuel a lot of actions and talk.

Governments have the option of taxing more to fill the coffers. Not the obvious tax, but the one we don't really think about. For example petrol. A significant part of the price of it, are taxes.

Yet in this Cyprus case, it is the people with savings, that the government is in a way taxing. Reminds one of Robin Hood, except that the less wealthy are also included.

But now the conundrum of the average " Joe & Jane ". You know, we who save our money in the bank as opposed to doing fancy stuff in the stock markets ! The last few years of roller coaster rides in the stock market, have curbed the average appetite for that as well.

One option is putting it under your mattress. You may laugh, but I think it is happening. Yet, if you don't trust the banks with your dosh, then putting it in your bedroom will make you stress even more. What about burglars ? This whole issue will surely increase the mattress raiders ?

If you take your dosh out of banks, that denotes that you are worried about the system and more likely the Euro as well. So the mattress option is no good either ! You don't want to be stuck with a king's ransom of non-usable currency.

What is left ? Spending and using it, of course. Why deny yourself most things now, in order to save for that rainy day ? Especially if you are not sure whether someone takes part of it at a later stage. Spending on oneself might be the new " hip " thing to do.

Paradoxically, that might just be what the doctor ordered... Spending some savings to buy more goods and services will spur on the dragging economies. Could this Cyprus-Affair actually be the final & definitive turning point out of this blasted recession ?

Look, I can already hear the laughs and guffaws of the Finance elite. Be my guest, but you know, sometimes common sense beats fancy forecast models...Just saying !

Biggi