UK GDP declining nearly at Great Depression rates

[Kasz216]

SamuelRSmith said:

NJ5 said:
@kowenicki: So you think the financial sector is out of the woods? No more bad debt waiting to explode and things like that?

This global financial system is so complicated that I don't think anyone can claim that.

Well, the fact that the majority of the UK's banking system is currently under control of the Government offers a little more protection, as savers will feel safer with their money in these banks if they know that the Government can always back that up. One of the big problems was that savers lost their confidence and kept trying to pull their money out of banks - of course, the banks didn't have the money available and that started lots of panic (as large chunks of it was tied up in things like the sub-prime market).

It can't though.  If something were to happen to the banks to cause them to fall where the uk would need to start paying everything themselves.. it'd quickly approach an icelandic meltdown.