Lessons From The Greeks

[Tarrel]

The last 24 hours have presented a vivid picture of what happens in a financial crash.

Banks closed, effectively, until further notice. Cash withdrawals limited to €60. Queues building at ATMs, supermarkets and filling stations. Suppliers, including the likes of BP, saying they won't take credit cards.

Ten of thousands of Greeks are waking up to the consequences of preparing too late, or not at all. Imagine your predicament if you were in Greece and had made no preparations. Only €60 per day available to buy food, fuel, etc. Having to queue to obtain said €60, with no guarantee that there will be money in the ATM by the time you get to the head of the queue. Possible difficulties in obtaining necessary medication, getting to work, travelling to family in need, etc. etc.

All this in a developed European country familiar to many of us.

IMO this is a powerful lesson in making basic financial preps; if possible, holding enough cash on hand to cover a month's worth of routine expenditure. Keeping a decent stock of food, and fuel tanks topped up to reduce the need to use said cash. Keeping oil/coal/wood stores topped up (if relevant) to provide a buffer stock of heating fuel.

Ideally, one should be able to respond to a crisis like this by shutting the door and falling back on the preps until the situation normalises.

If Greece defaults tomorrow and, by any chance, contagion spreads through the banking system to the UK, how would forum members be placed to face a situation like the Greeks faced this morning?