funny how these c--ksuckers who preach about sovereignty being obsolete go the the American citizen, rather than the UN for their f--king bailouts 300 billion, for citibank alone
National Savings has no chance of default since it's government owned (besides, the service is so poor it takes days or even weeks to make withdrawals). You have to remember with bank runs, the alternative needs to be more palatable. Where else will people put their cash? If anything there will be a run *into* National Savings and the big 4 banks. I'm also wrestling with how negative to be on the pound. On the one hand the fundamentals and outlook are horrific - on the other it has collapsed 50 handles in 3 months and the bear case is now widely known. I have a fair bit of my assets in Yen and dollars, but being a UK citizen I can't get completely short the pound without taking huge risk since my living expenses and tax liabilities are in sterling. My plan is just watch and wait - so far its settled into a trading range 1.46-1.55. Selling at the top of the range, and being prepared to short even more if it gets to 1.65 and 1.75 (the latter would be the short sale of the century IMO) is my admittedly rather unsatisfactory plan at the moment.
If the pound falls another 30% and the Uk goes into a depression, you may find the public mood changing quite markedly. People think with their wallets first, and their principles second.