With the global credit crunch everywhere in the media this week, money has never been more on our minds. The instability of the markets, the appearance of entities like “toxic” debt and complex futures has taken the specialist financial mechanisms of the stock markets and given them mainstream visibility. As the shockwaves ripple through our society, it raises questions.
Answers is a great place to satisfy your curiosity, as we have a wealth of financial experts participating on the site, from Unbiased.co.uk, to Moneyfacts and Impartial.co.uk. So while we’d never claim to being suitably knowledgeable in this field, we’re more than happy to turn our blog over to those who are. So without further ado, here are four great answers on what seems to be the root of all current evils: money.
What banks or building society’s are likely to survive the credit crunch?
Best Answer by Darren from Moneyfacts:
“All banks and building societies will survive the credit crunch. However, some are choosing to merge to put themselves in a stronger position. If in the unlikely event the worse should happen, then the Government would step in, just like they did with Northern Rock.
Turmoil in the financial markets; naturally makes consumers worry about the safety of their savings but unless they have more than £35K with a savings provider then there is no need to fret.
The Financial Services Compensation Scheme, covers 100% of the first £35K, per person, per deposit taking institution. Therefore, if you ensure that you don’t have more than this limit with any one provider, if in the unlikely event the worst should happen, you will get all your money back.”
To see more on how the situation varies from institution to institution click here…
With the economic fall is now the perfect time to buy stock?
Best Answer by Unbiased.co.uk
“It is amazing how investor sentiment invariably leads people to buy when the market is high and therefore stocks are relatively expensive and sell when the news is bad and values have fallen.
September 2008 sees the FTSE 100 in the UK at the same level around 4800 as it was in April 2005 and June 2002 –with intervening highs of 6721 in Oct 2007 and a low of 3567 in Jan 2003. To view any one moment in the market as perfect is to miss the point — accepted wisdom is that timing contributes a mere 2% to the successful returns from an equity based investment portfolio whilst asset allocation contributes a massive 92%! (”Other” factors e.g global disasters etc make up the other 6% ).”
To read more on the opportunities that exist to take advantage of investing, read the rest of the answer here…
Oil is skyrocketing, therefore should green energy stocks go up or down?
Best Answer by Unbiased.co.uk
“Oil (and therefore gas) prices have been very volatile in recent months. They are a mature technology, so there is unlikely to be any ground-breaking innovation in this area. Green energy stocks on the other hand, as your long list suggests, are in many different technologies and are not fully developed.”
To find out whether there’s a correlation between oil and green stocks, read more here…
What other fees are included in a mortgage APR?
Best Answer by Impartial.co.uk
“The APR is supposed to be an accurate method of calculating the cost of borrowing including all fess and should include the following:
1. Discount Points
2. Origination Points
3. Pre-paid interest
4. Loan Processing fee
5. Underwriting fee
6. PMI
7. Application fees”
Read the full question here…
For more great answers from Impartial.co.uk, Unbiased.co.uk and Darren from Moneyfacts check their Answers profiles.
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