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Guest Steve Cook

How Safe Is Your Cash? A Poll.

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Guest vicmac64

I voted very likely there will be a run on multiple banks because this is the end game of the pyramid scam the banking industry has been playing.

and I voted getting money back as being very unlikely as the banks have virtually nothing put aside for this eventuality - and the UK economy is going down the pan so the govt would in my opinion be unable to honor this pyramid pledge.

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Interested to hear other's opinions on this topic

I think you should clarify the question about the £35K rule.

There are three possibilities:

1. £35K guarantee defaults - everyone looses some/all of their deposits.

2. £35K guarantee is upheld (with/without government assistance) but anyone with more on deposit looses it.

3. £35K guarantee is ignored - as with Northern Rock - and all deposits are underwritten by the treasury.

Of course, the £35K rule does not have a time scale guaranteed, as far as I'm aware. So, even if we see 3... this doesn't preclude bank runs.

Edited by A.steve

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Guest absolutezero

I reckon the £35k rule will be applied. And more besides.

The Government will step in and back up all deposits with taxpayers' cash.

Northern Rock proved that.

It'll be asking for trouble and will end in tears but they can't let people lose faith in the banking system.

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Guest Steve Cook
I think you should clarify the question about the £35K rule.

There are three possibilities:

1. £35K guarantee defaults - everyone looses some/all of their deposits.

2. £35K guarantee is upheld (with/without government assistance) but anyone with more on deposit looses it.

3. £35K guarantee is ignored - as with Northern Rock - and all deposits are underwritten by the treasury.

Of course, the £35K rule does not have a time scale guaranteed, as far as I'm aware.

Guarantee defaults

as the other two options functionally mean that the guarantee is upheld, at least as far as the depositor is concerned. I suspect they would care less who pays them their money as long as they get it. As for payments above 35K. This poll does not seek to address that

Edited by Steve Cook

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I think the £35k will be honoured because the BOE can just 'print' money. Of course we will probably have hyper-inflation as a co-pilot!

Spot on.

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I agree. I think that further runs are unlikely, but if it comes to it, the government will just print their way out. The public will probably never twig that this has already happened.

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I have Premium Bonds and Income Bonds (both, supposedly, "guaranteed" by the Treasury.)

I have less than £35K in any one banking consort.

I sold out of the Stock Market late November.

Slightest sign of a bank run and I shall be joining the queue, even if it

means taking a "sickie".

Edited by PotNoodle

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The only reason there was a run on NR is because the rescue had to be made public. Why would there be more bank runs now the Government/BoE can lend (or more accurately, donate) the banks unlimited funds secretly?

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This 35k thing is an insurance scheme, do you think your car insurance would pay out is everyone wrote their car off on monday morning?

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Guarantee defaults

as the other two options functionally mean that the guarantee is upheld, at least as far as the depositor is concerned. I suspect they would care less who pays them their money as long as they get it. As for payments above 35K. This poll does not seek to address that

:) I share both your perspective and your analytical way of thinking... Someone, being contrary, could argue that the £35K rule was not applied to Northern Rock - as, while it would have been bankrupt without Treasury/BoE intervention, depositors were not held responsible for choosing a bank with a bad business model... One could argue that the £35K (or rather £2K + 90% of £33K - at the time) was not honoured... and an alternative was to 'rescue' the stricken bank first with emergency loans, then by nationalisation.

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Guest Steve Cook
:) I share both your perspective and your analytical way of thinking... Someone, being contrary, could argue that the £35K rule was not applied to Northern Rock - as, while it would have been bankrupt without Treasury/BoE intervention, depositors were not held responsible for choosing a bank with a bad business model... One could argue that the £35K (or rather £2K + 90% of £33K - at the time) was not honoured... and an alternative was to 'rescue' the stricken bank first with emergency loans, then by nationalisation.

Thank you A.Steve

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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