Terminator X

iTrader: (7)

Just concerned about savings generally seeing that RBS, Barclays etc are all looking rocky

Did the Govt increase the protection levels?

TX.

SunnySideUp

£50,000 I think it remains at.

Mr Darling has not let any UK Saver suffer yet, sleep easy.

Thanks for my Icelandic money, Labour Government

Dedrater

Me too

Gotta love them anti terror laws

SunnySideUp

I got 'most' of it out before the whole thing collapsed - but had my ISA stranded

Labour came good and gave me every single penny back

Spooky Mulder

Pete,

even for you that is a little naive - Mr Darling has commited around £500bn on UK Savers (and non-savers) behalf which is around £15,000 per economically active head in the UK.

So not a lot then

I am sure it will help close the Savings Gap which was the number one concern of this Government five years ago.

Petem95

Yeah my Icesave savings were also rescued by 'crash' Gordon from those Icelandic terrorists! Only good thing Labour has done for me

As mentioned all savings insured to £50k, but the way things are going £50k might only buy a loaf of bread in couple of years if the government starts 'quantitive easing' which is likely now as Liebour have sneaked through the revoking of an old law which states the bank of England have to say if they're expanding the money supply... now they dont..

SunnySideUp

£10 Trillion Note due off the presses in 2010?

Terminator X

iTrader: (7)

Why does printing more money spell trouble? Vaguely remember it at school via economics ...

TX.

SunnySideUp

It devalues every £ in circulation.

Petem95

Because it devalues the currency. Roughly if you think there are a finite number of assets in the UK, but suddenly there is more money in circulation, then there is more money chasing each asset so each asset will be worth more (in numerical terms - but each £ is worth less really).

Zimbabwe have been doing this so are a good case study....

Terminator X

iTrader: (7)

Why would we print more money then if it's not a good idea

TX.

SunnySideUp

Makes everyone feel richer and gets them spending

Dedrater

Lets burn more money, which will increase the value of the £.

God I'm good

dpb

Dont have to , Gordan will just sequester what we have

Petem95

They'd do it to try and stop deflation, as if we get deflation people generally stop spending (as things just keep getting cheaper....) and that slows the economy even more.

It's a very risky stratergy however, but the UK is utterly screwed now - looks like the credit rating of the UK is going to be cut - nobody want to invest here as we're swapped with debt.

dpb

Yep,weve swapped a once prosperous country under the torys for a road to hell

Brit_in_Japan

Define "looking rocky". There's an important distinction to be made between the value of a business and the deposits which it holds and manages.

If you are a shareholder then things aren't looking great, RBS et al have lost a huge percentage of their share value over the past 24 months and there is a genuine possibility that some may yet be taken 100% into state ownership. If that happened then existing shareholders, including may tens of thousands who work for those banks, might get little if anything for their shares.

However depositors really don't need to worry, there is de facto a promise from the govt that no-one would lose anything if any bank did get into difficulties, the Iceland affair demonstrates that.

Terminator X

iTrader: (7)

^^ Shares recently worth £4 down to 10p or less.

TX.

Brit_in_Japan

So if you're a shareholder you've already lost 97.5% of the value compared to peak. That's worse than a bit dodgy.

If you're a depositor then don't fret, the govt. couldn't let any of the big high street institutions go under as it would cause financial instability of seismic proportions. Full nationalisation would happen if that looked to be on the cards.

JPF

iTrader: (1)

LMAO....yeah a prosperous country that had schools falling apart, hospitals closing and a railway infrastructure divided up in to bits so some twits with lots of money could make lots more at the expense of train users....oh and not forgetting the loss a large part of our industry.....also don't forget who the real friends of the big wnkers, oh sorry bankers are...as a hint they were blue....things may be sht now but I remember being so relieved as was the country when the last lot got kicked out of power.

JPF

iTrader: (1)

Oh sorry yeah back on topic, yes savings are protected.

Matteeboy

Savings may be protected but I can imagine that it would take a huge effort to actually get the money back if a bank collapsed.

JPF

iTrader: (1)

Isn't the idea of government protection to avoid that? do you mean for the individual or the government to get the money?

Matteeboy

For both.

Can you imagine thousands of customers suddenly wanting their £50k back?

It would be a nightmare.

JPF

iTrader: (1)

Yeah true wouldn't be fun, but how many people have that amount saved in one bank account? and how many of those with the same bank? guess its a good illustration of how the government had to step in with the banks.

EddScott

It is the last ditch effort from a desperate government to stave off financial ruin. Not just here but anywhere.