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House Price Crash Forum

Are There Any Safe Uk Banks?


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I think that in the event of a meltdown of the financial system money will be worthless. To acquire food you will have to grow it or steal it.

Was all money in Iceland worthless after their meltdown? No, just Icelandic money. For anyone living in Iceland but with all their money in dollars or Euros, they suddenly became 40% RICHER after the meltdown.

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The FSCS is like Lloyd's List without Names! The good news is that if there were a complete system collapse, the money owed to everyone would be worthless, so the FSCS would be able to cover that.

I think the term "may" here relates to financial losses which may not be covered, mortgage advice stuff, or losses that happened prior to the current rules, so deposits are "safe".

Take a look at the FSCS website. The FSCS is a limited company. Its website says "The FSCS is the compensation fund of last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading we may be able to pay compensation to its customers."

The word "may" is less confidence inspiring than the possible alternative "will pay compensation to eligible customers", and sounds like an escape clause.

Martin Lewis of MSE provoked this response from Yvette Cooper in May 2008: "In the unlikely event a major bank became insolvent the Government would ensure that the FSCS has access to enough immediate funding to pay out depositors in a timely manner, through borrowing from the Government or Bank of England. The FSCS could then levy up to £4 billion per year from the financial services industry to cover the costs of compensation"

I wrote to Ms C's successor Danny Alexander to ask if the current government was bound by this pledge. That was three weeks ago. No reply thus far. I guess he's busy...

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I had a discussion with someone quite senior about this point and he argued that there is a safe asset. People. Bring back slavery, almost full circle.

I tend to think it does not matter where it is.The fact will be that the buying power "worth" of whatever we have will likely be eroded to insignificance.

So buy a house and watch the value plunge.

There is nowhere secure.

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To acquire food you will have to grow it or steal it.

Or stockpile it in advance.

Was all money in Iceland worthless after their meltdown? No, just Icelandic money. For anyone living in Iceland but with all their money in dollars or Euros, they suddenly became 40% RICHER after the meltdown.

Only relative to the rest of the population. They didn't gain wealth, they lost the least. Still better than a smack in the teeth though.

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