On first glance this sounds like a good thing

[Grumpmeister]

And then you realise just where the money to protect these savings is going to come from. You are going to be taxed to the hilt to protect your savings folks.

Prime Minister Gordon Brown has told the BBC that he will do "whatever it takes" to protect people's savings.

Legislation to guarantee bank deposits up to £50,000 - compared with the current £35,000 - is expected shortly.

He declined to offer an unlimited guarantee, as has happened in Ireland, but pointed out the government had not let any UK depositor lose out.

He pointed to actions over Northern Rock, HBOS and Bradford & Bingley to show how they protected savings.

[Nick]

I want a gun

[Barman]

I want a gun

Nope they rather cleverly banned guns, knives and any other weapon you might use to defend yourself... 

[Uncle Mort]

The problem is confidence. By guaranteeing savings there is less likely that there will be a run on a bank. It's that run that ultimately destroys the bank as they need the liquidity given by savings to keep going.

If we 'don't panic' then we're not 'doomed'

(As Capt. Mainwaring might say)

[Bar Wench]

But I don't want to pay to save peoples savings!

[Snoopy]

Then you are like me and a great many others. Meanwhile the Government will put on a condescending voice and tell us that "You don't understand"

[Bar Wench]

I understand perfectly. I've done my research the last few days and to be frank I can't see anyway that I can be damaged by banks going bust. In fact I think it would be a good thing. Get things back on an even keel.

[Uncle Mort]

You get paid cash in hand then?

Suppose it's your employers bank that goes bust - where would you be then?

[Snoopy]

I understand perfectly. I've done my research the last few days and to be frank I can't see anyway that I can be damaged by banks going bust. In fact I think it would be a good thing. Get things back on an even keel.

I agree but as Gordon the Moron will tell you again and again ~ "It's Global - You have to understand that"

[Bar Wench]

You get paid cash in hand then?

Suppose it's your employers bank that goes bust - where would you be then?

Claiming benefit! 

[Barman]

It would be interesting wouldn't it...

Imagine if all the old people in 'homes' that are forced to pay for their care because they have more than 6d in savings were to lose the lot in a banking collapse... 

HMG would have to pick up the cost of their care...

But where exactly would their savings have gone...?

Some bastard must have them somewhere... 

[Bar Wench]

Thing is they don't actually exist do they. It is only digitally or on paper. There is more "money" in the economy than actually exists.

[Snoopy]

It would be interesting wouldn't it...

Imagine if all the old people in 'homes' that are forced to pay for their care because they have more than 6d in savings were to lose the lot in a banking collapse... 

HMG would have to pick up the cost of their care...

But where exactly would their savings have gone...?

Some bastard must have them somewhere... 

A point I made some days ago ~ Somebody has all this money .... it hasn't just vanished. Find it, take it back and the problem is solved. Of course that assumes it ever existed in the first place.

[Barman]

It would be interesting wouldn't it...

Imagine if all the old people in 'homes' that are forced to pay for their care because they have more than 6d in savings were to lose the lot in a banking collapse... 

HMG would have to pick up the cost of their care...

But where exactly would their savings have gone...?

Some bastard must have them somewhere... 

A point I made some days ago ~ Somebody has all this money .... it hasn't just vanished. Find it, take it back and the problem is solved. Of course that assumes it ever existed in the first place.

Soooo... if everybody took their money out (not from the bank of squeaky floorboard obviously), the BoE would have to print more money...?

Printing money = hyper inflation...

A bit like Zimbabwe then... 

[Bar Wench]

It would be interesting wouldn't it...

Imagine if all the old people in 'homes' that are forced to pay for their care because they have more than 6d in savings were to lose the lot in a banking collapse... 

HMG would have to pick up the cost of their care...

But where exactly would their savings have gone...?

Some bastard must have them somewhere... 

A point I made some days ago ~ Somebody has all this money .... it hasn't just vanished. Find it, take it back and the problem is solved. Of course that assumes it ever existed in the first place.

Soooo... if everybody took their money out (not from the bank of squeaky floorboard obviously), the BoE would have to print more money...?

Printing money = hyper inflation...

A bit like Zimbabwe then... 

Exactly! Which is why the government are rushing to prop them up. Because if confidence is lost and everyone withdraws their money there won't be enough. Leading to widespread panic and civil unrest.