Money And Risk-

[Guest KingCharles1st]

or more precisely- up till now we have thought of money as risk- thereby giving money some kind of meaningful value.

until one takes out the risk element- Ireland, Germany- anybody who wants to chuck in their hand early basically

so thats what will happen by the end of the week

What then does money become. Worthless?

[Mr Nice]

or more precisely- up till now we have thought of money as risk- thereby giving money some kind of meaningful value.

until one takes out the risk element- Ireland, Germany- anybody who wants to chuck in their hand early basically

so thats what will happen by the end of the week

What then does money become. Worthless?

the fact that they are guaranteeing %100 of deposits doesn't really change anything as far as risk goes.

there was never enough money to pay out even the 30k euro guarantee (or whatever it was), so increasing the promise has no real effect other than to calm people down.

the danger now is still what it was before, that tings will get bad enough that the guarantee would have to be called in in large numbers.

as that likelihood seems to be going up by the day, I'd expect the currencies involved to start declining on the world markets as they will be perceived as more and more risky.

[Longinthetooth]

Think about it logically, if circumstances actually arose that the banking system went so pear shaped that all these guarantees had to be called upon, what use would money as we presently know be anyway - now if they paid it in gold!!!

[elalamein]

On the subject of risk and slightly off topic from the actual thread, does the Government guarantee the financial services compensation scheme?

If say 2 institutions went under and there was a call on member firms but this was insufficient to meet the schemes liabilities what happens ??

[roger196]

Think about it logically, if circumstances actually arose that the banking system went so pear shaped that all these guarantees had to be called upon, what use would money as we presently know be anyway - now if they paid it in gold!!!

IMO the 50K ( prev£35K) guarantee will be paid in some form of government stock (anyone with a better name than Brown bonds). This stock will be like War Loan, irredeemable except for approved purposes.