News - government savings g/tee - what do you think ?
Discussion
On the other hand, if people think that their money is safe, there is not likely to be a run on any one bank in the same way as northern rock - so it reduces the risk of another bank collapse without (hopefully) too much outlay...
Serious question - how many people have more than 35k in savings? I have no idea. But then I'm poor and so are all my mates.
Edited to add as I missed the point of the question - the government will just print more, thus devaluing the money itself, probably meaning that you'd be as badly off as if you'd lost half of it...
Or the country will just collapse and we'll see ludicrous inflation...
Serious question - how many people have more than 35k in savings? I have no idea. But then I'm poor and so are all my mates.
Edited to add as I missed the point of the question - the government will just print more, thus devaluing the money itself, probably meaning that you'd be as badly off as if you'd lost half of it...
Or the country will just collapse and we'll see ludicrous inflation...
Edited by Fatboy on Wednesday 1st October 22:00
I read a piece in the FT yesterday that seemed to suggest that as the effect of just one saver losing their deposit in a bank failure could have a catastrophic effect generally (as it could precipitate a general run) there is, in fact a de facto 100% guarantee- none of the NR, B&B, HBOS savers have actually lost anything, the government have ensured that at least.
So in effect I, the taxpayer, am already underwriting a whole load of people who were financially savvy enough to accumulate lots of cash but not quite enough to diversify. I can think of one or two other things I would rather spend my hard-earned on if I'm honest...
So in effect I, the taxpayer, am already underwriting a whole load of people who were financially savvy enough to accumulate lots of cash but not quite enough to diversify. I can think of one or two other things I would rather spend my hard-earned on if I'm honest...
anonymous said:
[redacted]
"They won't let it happen and see, they've sorted it".Now, if we want to know the totality of what might be the liability that will end up with taxpayers and how far into the future?.
Not sure anyone has yet provided that figure.
"Stuff" being passed, of what "value"?.
I know you asked *if* the scheme is called upon, but my thinking is that that situation is unthinkable.
If any significant bank was allowed to go bust then pretty well everyone would try to pull all of their money out of every bank. Society would collapse.
We (wife and I) have a fairly signifcant amount in deposit accounts and ISAs and I'm pretty cool about it (for the reason above) but wifey is wobbly about it and last week we split our largest single cash holding into a separate institution. We still have £30K on our own mortgage and a similar amount on another house we part-own - I've kept those as they're cheap lines of credit but very seriously thinking of paying them down now.
If any significant bank was allowed to go bust then pretty well everyone would try to pull all of their money out of every bank. Society would collapse.
We (wife and I) have a fairly signifcant amount in deposit accounts and ISAs and I'm pretty cool about it (for the reason above) but wifey is wobbly about it and last week we split our largest single cash holding into a separate institution. We still have £30K on our own mortgage and a similar amount on another house we part-own - I've kept those as they're cheap lines of credit but very seriously thinking of paying them down now.
In short the idea is that all the other banks have a whip around. It's never actually been tried.....like so much else it's all a confidence trick. Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff