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Britain Defaults On Its Debt


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http://news.bbc.co.uk/1/hi/business/8455089.stm

A technical glitch has led to 8,000 National Savings & Investments (NS&I) Income Bond holders failing to receive their interest payments in January.

The government-backed institution said that it was writing to all those affected and said they would be paid "as soon as possible".

those pesky technical glitches, eh? :ph34r:

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...and said they would be paid "as soon as possible".

Why does this not read "and said they would be paid by close of business today"?

How difficult can it be to credit an account?

Edited by Timm
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Strange how these things always seem to happen when something significant is happening.

In the particular example of an exchange, there might be perfectly non-conspiratorial reasons for the correlation. If the volume of trade increases due to big price movements, the load on the servers goes up, and they are more likely to fail.

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Does anyone seriously think that states don't routinely default on debts? If you lent the British government money to fight the First World War you would still be waiting to get your cash back. And by the time the Second World War was paid off the money being used was worth a tiny fraction of what was borrowed.

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2 things:

(1) high street financial institutions' IT systems are usually a bit dodgy

(2) public sector equivalents are probably worse

no conspiracy - just mild incompetence

Edited by Si1
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NS & I once had a glitch when I bought some Premium Bonds. They took the £30k twice. I was surprised my bank account allowed a -£27k balance but when I saw the charges I realised they were just rubbing their hands with glee.

NS&I have recently f*cked up in my favour. I tried to buy more than £30,000 worth of PBs and they rightly cut me back to the £30K limit, but they miscalculated so I'm sitting on around £30,600 worth of PBs. ;)

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NS&I have recently f*cked up in my favour. I tried to buy more than £30,000 worth of PBs and they rightly cut me back to the £30K limit, but they miscalculated so I'm sitting on around £30,600 worth of PBs. wink.gif

Of course you realise that if you win the £1m prize it will crop up that the holding is £30,600? They will say that the winning premium bond number was one you shouldn't have been given and void the win.

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Guest absolutezero

2 things:

(1) high street financial institutions' IT systems are usually a bit dodgy

(2) public sector equivalents are probably worse

Just to clarify and highlight a point: You don't actually know if the public sector anything is any worse than the private sector.... You're just assuming it is, "probably".

When it comes to bashing the public sector without actually checking the ground you stand on, you just can't help yourself, can you?

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A technical glitch has led to 8,000 National Savings & Investments (NS&I) Income Bond holders failing to receive their interest payments in January

.. the technical glitch presumably being that it is technically impossible to pay depositors their rightful interest when you have sustained £2bn more withdrawls than deposits.

Treasury forced to inject £500m into NS&I : - http://www.thisismoney.co.uk/news/article.html?in_article_id=496668&in_page_id=2&in_page_id=2&expand=true#StartComments

Edited by Sledgehead
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.. the technical glitch presumably being that it is technically impossible to pay depositors their rightful interest when you have sustained £2bn more withdrawls than deposits.

Treasury forced to inject £500m into NS&I : - http://www.thisismoney.co.uk/news/article.html?in_article_id=496668&in_page_id=2&in_page_id=2&expand=true#StartComments

Makes you wonder if you're any better off with NS&I than in a high street bank or chucking it under the mattress. For those of us with index linkers, Gordon has already decided to remanipulate the way the RPI is calculated on top of it's already dubious integrity, and now they develop a technical glitch for as long as it takes to ensure the treasury cheque doesn't bounce.

Not exactly confidence inspiring, is it?

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.. the technical glitch presumably being that it is technically impossible to pay depositors their rightful interest when you have sustained £2bn more withdrawls than deposits.

Treasury forced to inject £500m into NS&I : - http://www.thisismoney.co.uk/news/article.html?in_article_id=496668&in_page_id=2&in_page_id=2&expand=true#StartComments

Good find, I'd missed that. Our fiscally incompetent leadership have, at a time when bank-killing deflation is supposed to be threatening, managed to turn the former cash cow of NS&I bonds into a drain on government finances?!

Good grief.

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