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Spikey1

Guarantee Or No Guarantee It Shouldnt Make A Difference

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The 100% guarantee for all current depositors sounds good but im not so sure its enough for the holders to back away from the counter!

If NR does go bust there will be a very lengthy delay before savers will get their money back and during that period of time they will suffer stress, loss of interest and be vulnerable to any crisis in their lives that requires emergency access to their savings.

Because of the above I think that the smarter sheeple will be at the door first thing still demanding their cash because it seems obvious that NR will not last the week or a month if its lucky!

:unsure:

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It will make a fecking great difference.

What the average punter has not figured out yet:(but will happen)

...1)Distressed bank X gets it's assets(savings) withdrawn

2)Distressed bank X share price collapses.

3)White knight comes in to take over at bargain-basement price....and acquire the loan-book(mortgages etc)

4)white knight then consolidates the operation with thousands of job losses,due to "duplication"

5)rinse and repeat with several banks....once the competitive field becomes smaller,the remaining players will then crank up the mortgage rates/reduce the savings rates to improve profitability.

...not good news for anyone with a mortgage.The BoE base rate may stay the same but the margin between base rate and company loan rate will begin to increase sharply.

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It will make a fecking great difference.

What the average punter has not figured out yet:(but will happen)

...1)Distressed bank X gets it's assets(savings) withdrawn

2)Distressed bank X share price collapses.

3)White knight comes in to take over at bargain-basement price....and acquire the loan-book(mortgages etc)

4)white knight then consolidates the operation with thousands of job losses,due to "duplication"

5)rinse and repeat with several banks....once the competitive field becomes smaller,the remaining players will then crank up the mortgage rates/reduce the savings rates to improve profitability.

...not good news for anyone with a mortgage.The BoE base rate may stay the same but the margin between base rate and company loan rate will begin to increase sharply.

And Gordo & Ali say 'now't to do with us' it's market forces at work.

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