The savings trick every Australian needs to know: Barefoot Investor reveals his simple trick to protect yourself from a bank meltdown
- Scott Pape shared advice on how to keep your money safe
Barefoot investor Scott Pape has revealed his simple trick that Australians can use every day to keep their money safe during a recession.
The financial investment expert insisted that there was a surefire way for residents to protect their savings in the event of the collapse of the big banks.
It comes after worried resident Jenny wrote to Babi asking how safe her money really was.
Barefoot investor Scott Pape has revealed his simple trick Australians can use every day to keep their money safe during a recession.
This comes after Jenny, the resident in question, wrote to Mr. Papi asking how safe her money really was (Stock Image)
Its concerns about the stability of banks stem from the collapse of Silicon Valley Bank and Signature Bank in the US over the past two weeks.
A new report from top economists suggests that as many as 190 other banks in the country could follow suit.
The domino effect has fueled fears that it could have major economic ripples around the world and plunge the world into a recession similar to 2008.
“With yet another bank failure in the US, it’s starting to feel like 2008/2009 all over again. How safe are our banks and our money in banks?” Jenny wrote.
Babe reassured Jenny that her money would be safe in the bank thanks to the financial protection that was in place.
He revealed that the Australian government set up the financial claims system in the aftermath of the global financial crisis in 2008.
This system is designed to provide economic security in the unlikely event that a bank, credit union, building society, or general insurance company fails.
Babi indicated that an amount of up to $250,000 will be protected in one account.
He revealed that residents can protect the rest of their savings by following his very simple trick.
“So, if you have more than $250,000, you should consider distributing it to various institutions, so you are covered by the scheme,” he wrote.
“Don’t worry, the money in our banks is safe,” Papi explained.
SVB Bank, a California bank founded in 1983, was forced to close this week after its ill-timed investments in long-term government bonds saw it suffer huge losses.
Robert Kiyosaki, bestselling author of Rich Dad Poor Dad, who predicted the collapse of Lehman Brothers in 2008 helped exacerbate the global financial crisis, has warned Credit Suisse may be closer to collapse.
The US bond market is in “serious trouble” after SVB collapsed on Friday followed by Signature Bank on Sunday.
In 2008, similar collapses of overextended US banks and subsequent massive taxpayer-funded bailouts precipitated a GFC that had profound effects around the world, including in Australia.
The collapse of SVB – and the fragility of other small US banks after days of panic selling in stocks – has raised fears of a repeat of 2008.
“The problem is the bond market, and my prediction, which I called Lehman Brothers years ago, is that I think the next bank to go is Credit Suisse, because the bond market is crashing,” Kiyosaki told Fox News.
The collapse of SVB – and the fragility of other small US banks after days of panic selling stocks – has sparked fears about a repeat of 2008.
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