Worth of FSCS when Govt coffers emptied ?

Albermarle

The consequence of course is that the currency becomes devalued and rampant inflation occurs. You only have to look back to World War II and the German economy

However in this situation , many other countries will be in the same boat, so the currency should not suffer in the same way ?

colsten

Tildaplum said:

The government can issue as much money as it wants to repay as much fscs compensation as it needs to  

FSCS is not funded by Government but by a Finance Industry levy

eskbanker

worldtraveller said:
if the proverbial did hit the fan, at any point in those 2 years (and these were very serious considerations back in 2008/09), you would very likely not be able to move any of your funds out at all if you felt that the bank was potentially at risk. Sure, you'd be covered by FSCS, but would clearly have to wait for funds to be paid out. Just saying, in case you weren't fully aware.

1. Anyone with a 2 year fixed term account is unlikely to be in a hurry to get their hands on their money.
2. FSCS aims to pay compensation within seven days of a bank or building society failing anyway, although in apocalyptic scenarios it may differ....

EdGasketTheSecond

Tildaplum said:

The consequence of course is that the currency becomes devalued and rampant inflation occurs. You only have to look back to World War II and the German economy

I think you might need a history lesson. Germany's hyperinflation occured during the time of the Weimer republic. Hyperinflation was over by the end of 1923 well before WW2.

Tildaplum

Thanks very much and more than happy to accept a history lesson from anyone especially as it contributes such a lot to the discussion