.png)
Don’t call me a prophet…and I’ve never liked those that say, “I told you so.”
But when I made these comments weeks ago, I wanted to shine a light on the fact that government guarantees on UK savings of up to £85,000 were thin at best.
The truth is people’s money may not be safe, let alone “guaranteed.”.
Just last month, I saw that the US Federal Reserve had offered an “unlimited” guarantee on savings.
And suddenly, the UK’s Financial Services Compensation Scheme (FSCS) say they will - and need to - review current compensation levels.
We are hearing that the current guarantee of £85,000 may shift to somewhere shy of $250,000 - perhaps.
Apparently, regulators are concerned that the guarantee’s current £85,000 limit covers only about two-thirds of deposits.
Add to that - the level of pre-funding could mean a delay of a week for customers to regain access to their money.
I don’t mean to cause alarm but my view is that a knee-jerk reaction of this kind shows exactly how fragile and unstable the system must be.
If there is one key takeaway from the SVB debacle it must be this - that a single, obscure bank’s demise can send shockwaves across the sector and illustrate its cracks.
Now US regional bank weaknesses are causing a domino effect to ripple through the system. Will the wings of a butterfly create a tsunami you ask?
Central banks’ immediate reaction to review and shore up consumer guarantees is as sure a sign as any - that they have panicked on our behalf – before we need to.
Yet questions remain – such as why was this only done now and why has it been so half baked, and barely announced as little more than a consideration.
Clearly, there has been insufficient preparation and planning and only one message has been communicated – between the lines – with any clarity.
Your money….is NOT SAFE.
#phillipullmann #thefivemasters #digitalcurrency #digitalpound #ukdebtcrisis #ukdebt #debtproblems #thoughtleader
Comments