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100% guarantee - Germany
kph100
Posts: 57 Forumite
BBC news just reporting that Germany may of gone 100% savings guarentee.
If so surely UK must follow ?
If so surely UK must follow ?
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Comments
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I suspect that the UK's reluctance to follow suit officially (it already has de facto) is largely down to Mervyn King. He is a professional economist, not a banker, and has a healthy scepticism, if not disdain, for the banking industry. I'm amazed he's survived in the job, given the ongoing love affair between the financial sector and the Treasury and other officials. King apprently does not want to be seen to encourage more of the same greed and irresponsibility that we have already seen by openely acknowledging that all the mistakes of the banks will be picked by the taxpayer as the last resort. The same thinking appears to have caused the reluctance to pass the US bail out bill in some quarters. I have a lot of sympathy with King's view.
As savers we might like the idea of the warm feeling of a 100% guarantee. But we have the option of limiting funds placed with any one licensed institution to £50,000. Any compensation paid under this scheme should ultimately be funded by the banking industry.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
No they don't have to. Get over it.0
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I think that the rest of Europe will go this way in the next few weeks to stop funds being moved out of the country.0
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http://news.bbc.co.uk/1/hi/business/7653317.stm
Although they don't actually say upto what point. She just says that savers will be guarenteed. Is that 100% or not?0 -
I think that the rest of Europe will go this way in the next few weeks to stop funds being moved out of the country.
This would involve assuming that the countries involved can afford to cover it. Germany, yes. Iceland ? Ireland ?No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
Peston says it will likely happen with Uk following suit "within 24 hrs..."
http://forums.moneysavingexpert.com/showthread.html?t=12004070 -
If the UK follow suit, the Icelandics will wobble further!0
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Ireland cannot afford the protection they have given. It would be highly damaging for their credibility for decades should they ever be put in that position. Iceland certainly cannot afford it. The UK cant really afford it either. Although seeing as the UK is almost certainly past the worst now I suppose its worth a gamble.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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All a government have to do to issue a 100% guarantee is to simply print the money if a bank fails and deal with the inflation later.0
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