Why won't the UK government protect ALL of your savings?
As news that Gordon Brown has increased protection for savers to £50,000 per institution is released it seems as though calls for 100% protection of savings have been ignored. This has prompted many to ask why the authorities are not able to guarantee all savings and what they may fear?
While on the surface it may look as if Gordon Brown is not prepared to help, in reality it would not be sensible to guarantee all savings, even in the current crisis. The pressure that this would place on the public purse would be enormous, at a time when money is thin on the ground to say the least. The move from £35,000 to £50,000 is as good a vote of confidence in the UK system as you might expect because in reality that is what it is. It makes no difference if the figure was raised to £100,000, £200,000 or even £1 million, it is the fact the authorities have indicated to the markets that while caution is the watchword the long term future of the UK financial sector is safe.
In reality there are more important things the government could be doing with any extra funding such as offering liquidity to markets, etc.
Share this..
Related stories
Has Barack Obama got his revenge on Gordon Brown?
Just 12 hours ago the UK government was openly suggesting that Gordon Brown's visit to the White House, the first EU PM to visit the new president, was the perfect opportunity to make political headway and reinvigorate the Labour vote in the UK. Whether the US authorities have taken umbrage with this or they are out for revenge after a number of comments emitting from the UK authorities angered US...
Read MoreShell Forecourt Delivery Strike Set To Go Ahead
The last few months in the UK has seen an increasingly bitter battle between the Unions and an array of businesses resulting in a number of crippling strike actions. Next on the list seems to be Shell, with last ditch talks to avert a strike from drivers employed by their fuel delivery contractor falling flat. A four day strike is planned for some time over the next two weeks unless the arbitrat...
Read MoreScottish leaders ignore collapse of Flyglobespan
Despite the fact that Scottish Parliament leader Alex Salmond has been championing all causes Scottish over the last few months, neither Mr Salmond or his political opponents took any time out in yesterday's Parliamentary questions session to discuss the issue of Flyglobespan. This reflects very badly on the Scottish parliament which is to all intents and purposes an arena to discuss all things Sc...
Read MoreLloyds TSB finally take over HBOS
Even though the ink is still wet on the Lloyds TSB and HBOS merger agreement this brings to an end one of the most controversial and long-running takeover battles in recent UK times. What should have been a fairly swift rescue bid for HBOS has dragged on for many months and recently went to court when a group of Scottish business people decided to take action against the merger. Many management ho...
Read MoreInsurance fraudsters find understanding with general public
Insurance fraud is not taken as a serious offence by many Britons, a new poll reveals.According to ITV, who conducted the survey for its new Fiddles, Cheats & Scams series, only one in four people would report such a scam if they came to find out about it.Moreover, a similar number expressed "sympathy" for some of these fraudsters, while 56 per cent said that they "could understand" why some peopl...
Read More