Today my newspaper headlined with a phrase best translated as "Withdraw cash from ATM machines while you can!". This is bad for three reasons:
- The phrasing scares people
- It is bound to deepen the problem, by encouraging people to withdraw money and worsen the liquidity of the banks.
- It is quite pointless to withdraw (large amounts of) money. If our banks go bankrupt (and if one goes, they'll all go), the value of money becomes questionable. After a few days, it probably will not be worth anything anymore. If you are worried, start hoarding food and water. You can't eat euros.
But then, I wouldn't worry anyway. I'd almost hope everything goes down, just to see how it plays out, in economic as well as in social terms.
Which newspaper are we talking about here?
I just got it from my post box. I will send an email about this, because such pointless headlines should not be used by a (imho) quality paper like NRC next...
Well, that's the media for ya. It's pathetic, indeed if the value of our money sinks to (near) zero, there's no point in having thousands of [your currency] in an old sock under your mattress. It'll never be worth more than what's on your bank account. If you insist on trying to safeguard your money, I suppose the only option you have is invest in something that will hold its value a little longer. Perhaps gold? Your house?
I'm not too worried everything is going to crash. And if it does, so be it, nothing I can do about it.
I think what NRC meant(but I haven't read the article) was that this particular bank might go bankrupt so to keep your money you should withdraw it from the bank.
The main thing people seem to be forgetting is that there is absolutely no point in withdrawing your money from your bank / savings account unless you have more than €20.000 in it (Dutch example) or actually need quick access to it. Because the first €20.000 is guaranteed for 100% by the Dutch Bank (DNB) and the second €20.000 for 90% under the "depositogarantiestelsel" which freely translated is the Financial Services Compensation scheme. Different countries obviously have different figures but very similar systems.
So unless you have more than those figures in your account, there is no need to take it out (presuming you don't directly need it) as you will get it back. When your bank goes bust you can contact DNB (within 5 months of the bank going bust) and after everything gets verified you should get your money back within 3 months.
Also if you have a significant amount above €20.000 do you really think an ATM is going to dispense that kind of cash? Best thing you can do is open a bank account with another bank and split your money up between the banks or building societies so none of them hold more than €20.000 of your money. This is very easy to do over the internet and doesn't require you to stand in lines for hours for an ATM that is most likely going to be empty by the time you get there.
The NRC Next is marketed at students and starters, they assume that their readers will under stand the irony of the title. If a paper as the Telegraaf would publish the same title, there would be more problems...
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