Should I buy gold now?

Account grant, cash or precious hoard it? The stern is the 25 answers to key questions about the financial crisis.
1. How safe is my money for a German bank?
As safe as in no other country in the world. The deposits are usually far beyond the legal requirements also protected. Moreover, the German financial system in recent decades as an unusually stable. Troubled banks were mostly from other institutions, such as the last SachsenLB by Landesbank Baden-Wuerttemberg. Or the owners are after money shot, as a few weeks ago, the Kreditanstalt für Wiederaufbau (KfW), the IKB with billions based. Pleitegegangen are only smaller private banks, such as BFI or Reith Inger, their investors, however, only partly been compensated.
2. Does the safety of the equipment differences between private banks, and savings Volksbanken?
Hardly. Since 1998, all banks in the EU member of the statutory compensation scheme contributions and must pay into a pot. In bankruptcy cases, the customers that 90 percent of their deposits back, up to 20,000 euros. The German private banks, there is also the Deposit Guarantee Fund in 1976 after the bankruptcy of Herstatt Bank was founded. The Fund ensures the de facto customer deposits to 100 percent. Note: Participation is voluntary, some 220 institutions are involved. A few small banks are not a member. Information about are available at the bank counter or online at deposit insurance. The savings banks and cooperative banks have their own protective devices and are also in crisis situations for each other one. Again, the client funds to 100 percent protected.
3. Up to what amount is my credit in Germany secured?
In a savings bank or cooperative bank is to secure virtually unlimited! Similarly, when private banks, the Savings Deposit Insurance Fund members. While the protection to 30 percent of liable capital of each bank is limited. In the case of Deutsche Bank, the security border but still at 7.6 billion euros – per customer. Even with a small bank with ten million euros are risk capital per customer than three million protected.

4. Foreign banks often offer higher interest rates. Is my money there as safe?

No. These institutions are mostly only the statutory compensation device. Here are the customers’ money only to 90 percent and up to a maximum of 20,000 euros protected. The savings would remain so for a Pleite at least ten percent loss sit.

5. How safe are deposits with German subsidiaries of foreign banks?

Just as surely as in original German banks: Almost 60 subsidiaries of foreign institutions, from ABN Amro and Citibank on the SEB to Ziraat Bank International is a member of the German deposit insurance fund.

6. Which forms of investment is exactly the deposit guarantee now?

Protected funds in the checking account, time and savings facilities, and savings certificates, registered in the name of the client running. This protection is generally not for bonds or certificates, the bank has released (bearer bonds). In case of bankruptcy of the bank, the customer would have his claims during insolvency register.

7. What exactly can the banks actually entrusted with the money they make – and what not?

Greatly simplified: Allowed is everything that the commitments to customers are not endangered. The core task of banks is to provide money to their investors in loans to other customers to convert. Typically, the interest on loans is higher than on deposits. From this interest rate differential lives the bank. Since the term desires of savers and borrowers do not exactly match and sometimes could be a debtor, the bank needs a sufficient equity as a buffer against risk. How much equity should be at least, is the state requirement. With a part of that capital to speculate on the bank’s own account, such as shares, bonds, currencies or commodities. Is this proprietary successful, the Bank makes additional profits. If the speculation wrong, the losses can shrink the equity, and hence the scope for lending.

8. How safe are deposits with building societies?

As safe as other banks and savings banks – see answer to Question 1

9. How safe are money market funds?

Classic money market funds are excluded from the financial crisis is not affected. Problems have, however, those funds, in addition to the normal interest rate securities and asset-called securities, in the jargon ABS (Asset Backed Securities), bought to yield income. As in these papers also ABS resale of mortgage loans can be unsafe borrowers stuck, they have fallen in value. As a result, funds with ABS-upon share of the fund savers since the U.S. real estate crisis losses.

10. As pension funds are safe?

In general, bond funds invest in bonds, government and corporate bonds with high credit ratings. These installations are exempt from the financial crisis barely affected. However, the rating ( “Rating”) of certain debenture holders to be too optimistic. There are also pension funds, the ABS securities purchased. Because this is currently only for junk prices or not can be sold, some fund companies to return the shares set. Investors of such funds, therefore, not currently on their money. When the market calms down, the trading resumed, but possibly at lower levels.

11. Real estate funds are also affected by the crisis?

So far, almost exclusively in the U.S. homes lost value. Corrections are also present in other overheated markets such as Britain or Spain possible. Real estate investing, however, usually in the office buildings and commercial properties. Rents and assessments would then come under pressure if the price decline in the housing to a marked slowdown in America should lead.

12. What happens to the securities in my account, if my bank goes bankrupt?

All shares and bonds, which are not of the bankrupt bank themselves, would not be affected. Securities are provided by the bank only held in trust and custody, not to include in bankruptcy. If the regulator include a financial institution, a customer depot to another. This also applies to all investment fund shares. They form the Fund, the only custodian of the custodian. Although fund companies and / or their parent companies went bust, the fund’s shares owned by the customer, so before accessing the insolvency administrator fully protected.

13. It is now advisable to larger amounts of cash hoarding at home?

No. High amounts of money at home are far more uncertain than repealed in a savings account: The crime statistics that there were last year around 310,000 burglaries, more than 100,000 of them in apartments. And losing cash by the price increase steadily in value – most recently by around two percent per year.

14. What are the effects of the financial crisis for shareholders?

Holders of bank shares must be further price reductions and lower dividends expected. Even if a bank no losses in U.S. real estate lending has probably the last lucrative business with big loans to go back. Less need to worry shareholders in other industries do. The world economy is still intact. The profit expectations of firms are different than in 2000 – is not completely covered. Even a slowdown of the economy, for example due to higher lending rates for companies that do not justify clearance sale for shares. Totally excluded, the never. Recovers the psychology of panic in the form of the upper hand, it comes to the crash. One consolation: Stock prices have been falling after each course in the past 150 years recovered. Usually in less than ten years.

15. What stock markets are particularly vulnerable?

Those who have known before the U.S. credit crisis were relatively overpriced – and it until today. These include especially the Chinese, Japanese, and partly on the Indian stock market. Not exactly cheap are also American stocks, especially technology shares.

16. Government securities are safer than savings?

It depends on the states, the bond offering. Argentine government bonds, for example, also from German banks have been sold, three-quarters of its value lost. German Federal Securities, however, such as federal government bonds or Treasury Bills, is the epitome of safety. For interest and repayment of the Federal Republic is straight. Before the German government unable to pay would be expected in the vast majority of other countries in bankruptcy, banks, anyway. It can be said that federal securities safer than savings.

17. Does the financial crisis and the widespread retirement of the Germans – the life insurance?

Virtually none. Life lay extremely long-term client funds, required by law and supervised by the state, mostly in European bonds. A small portion is in equities, corporate investments and real estate investing. If it does actually cause permanent loss of value, is the little bonuses reduced.

18. How safe is the state-subsidized Riester pension?
Very safe. Theoretically, the safest is Riester Savings Fund – see question 12 In the case of the bankrupt investment company invested every cent belongs to the customer. The guarantee that at least the start of pension contributions are still present, only then could not be redeemed, if at the same time as all other Riester providers would be bankrupt. Riester pension insurance is just as stable as life insurance – see Question 17 Stay still Riester savings bank: they are only offered savings and Volksbanken, are equally protected as deposits – see Question 1

19. Does the crisis mean that the interest rates fall or rise?

Hard to say. The Fed last week because of the crisis in its key rate by half a percentage point to 4.75 percent. The European Central Bank had earlier this week announced an increase not completed their sentence, and at four per cent respectively. The interest on house builders in Germany have fallen slightly since July. On the other hand, companies must now pay more if they want to borrow money.

20. Decline in Germany, real estate prices?

No, Germany is one of the few real estate markets in which it has no overheating. For years, prices are stable here, but with regional variations. In the U.S., Britain or Spain, now the air escapes from the bladder.

21. Will it be harder now, a mortgage to get?

In Germany, because homeowners have their real estate buyers not usually purchased for speculative purposes. Banks do not have to fear for their loans and in the awarding of new loans on the brakes come. The from abroad coming trend towards 100-percent financing for buyers with no equity but should be stopped.

22. Should the taxpayer for the mismanagement of public banks pay?

No longer forced to because the so-called Gewährträgerhaftung was tipped by the EU. For Saxony, Rhineland and Westphalia too late: the end of 2005 pumped the country North Rhine-Westphalia almost one billion euros in the already schlingernde WestLB. Distributed in each of the cost of the approximately eight million tax-paying workers in NRW about 125 euros. Well had 230 Euro at the end of 2005, each of the 1.3 million working for the Saxony Landesbank berappen, totaling 300 million euros. With new losses would now be the savings banks and security institutions of the public banks step. The consequences for the citizens who are in euros and cents is difficult to quantify. To offset the losses, the savings would have to either the terms for their customers worse or sponsorship of culture, clubs and communities cut.

23. Will the financial crisis to the economic upswing in Germany kill?
No, but likely to weaken. If the United States following the financial crisis as an engine of global economic failure, then get in Germany sooner or later also the exporters of cars and machinery to be felt. Moreover, including the weak dollar to make.

24. Is it advisable that all savings and disband them to buy gold?

Only those who have a collapse of the global financial system is concerned, this should be done. Some banks and asset managers recommend up to ten percent of your portfolio in gold to invest, in order for times of crisis to be armed. Motto: When everything falls, gold rises in price. In the past five years he has more than doubled. Fans of the precious metal should be borne in mind: Gold raises no interest, and the safe custody in a safe costs money. For the sake of marketability should investors common coins such as the Kruger Rand (South Africa), Maple Leaf (Canada) or American Eagle (USA) choose.

25. What does the financial crisis for people who have no savings, but have debt?

Not too early to look. If the bankrupt bank, the customer is not going on his debts. Then the creditors in the bank queue and report their exposures. The receiver is the outstanding money to the debtors of the bank recover.

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