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How will this USA debt default business effect us in UK?

(4 Posts)
BoyMeetsWorld Sun 13-Oct-13 11:44:58

If things do come to the worst (I know everyone's hoping they won't) & the US defaults, does anybody understand what the impact will be on the UK in layman's terms?

In particular, I'm concerned and don't understand - will our savings be safe? Or is there anything we can do?

What other things could we expect to experience? Unemployment? Increased prices? I'm completely lost with it all....

debtcamel Sun 13-Oct-13 12:04:34

Well the worst would be major rises in interest rates, bank failures, equities (and hence our pensions) trashed, banks stop lending to SMEs and so unemployment, mortgage lending dries up, house price crash - basically like 2008 crash but 100 times worse.

Hopefully the two sides couldn't be so stupid as to let that hapen ...

... could they?

But your savings should be safe if you are below the FSCS limit of 85k per bank.

BoyMeetsWorld Sun 13-Oct-13 14:51:26

Lol yes definitely way below that! What would happen if the banks were in trouble though, would it mean we couldn't access our money?

& would the interest rates be huge enough that people in the uk couldn't pay their mortgages?

So confusing...

SantiagoToots Sun 13-Oct-13 18:07:35

If there's a bank freeze, you'd be better off having 200 tins and 50 bog rolls than worrying about the mortgage!

I for one will be buying a few more tins/rice/pulses this week.

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