In a world of my own

Saturday, October 25, 2008

Apparently, there have been some rumours that a certain local bank (starts with D and ends with S) may collapse.

This morning, I was eating breakfast when my mum asked me whether she should withdraw money from a certain investment that she and my brother made with the bank at the start of the year.

I kept assuring her that Singapore is relatively safe and not to worry. She took out the investment pamphlets and 'contract' and I took a look at it. It was some triple yield fund thing and the money put in was not little. 100% principal protection at maturity. I kind of feared a little. I do believe that the investment that she had made was the kind where you put the money in there and what the bank does is take others who put their money in the same fund and invest in shares.

So how? Should she take out the money? I really don't know. Anything could happen. Banks may collapse anytime. Especially is rumours continue to spread that the banks may collapse, and everyone starts to withdraw their money, then the bank will.... I really don't know what's gonna happen this financial crisis.

- Bank run??
by snoopy_lim @ 9:43 AM