UK banking system on the verge of collapse. Apparently the failure of two major City hedge funds have caused a chain reaction. Most UK banks now can’t satisfy their capitalisation requirements. Millions of accounts have been frozen to prevent a run on the banks. Emergency talks with the BOE now going on. Looks like they’re going to impose exchange controls, to prop up the pound, there is also talk of reimbursing account holders with 10 year government bonds, rather than cash. Experts warned that these bonds would be worth a fraction of their face value in the current market. This could even exacerbate the problem for homeowners stretched on their mortgages, as they wouldn’t easily be able to acces their savings, so driving them into bankruptcy through no fault of their own. Experts are predicting 100,000 job cuts in the financial sector, could potentially be 200,000 if the UK plunges into a deep recession. Britain hasn’t seen an economic crisis of this magnitude since the Norman invasion of 1066, as documented in the Doomsday survey of 1086.
Banking crisis
Banking crisis
We’re all going to die.
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