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**orgagsUpsepsy** · 03-28-2009, 07:03 PM

Doubtful. I would be exceptionally worried for the global economy in such an event however if it did happen. One reason being that Britain hasn't been the only country to have a failed bond auction; Germany had seven last year, and another two so far this year. The same has happened in the Netherlands, and I think Spain and Belgium didn't even bother with auctions, anticipating that they would fail. That said, the day after the bond auction failure, another UK one took place that was 3x oversubscribed.

The other factor is while Britain has a large banking sytem relative to its economy - there were only two bad apples (HBOS and RBS), Lloyds (took over HBOS), Barclays and HSBC are in far better positions. Most importantly HSBC - the largest UK bank hasn't imploded (otherwise we would really be the brown stuff).

The last factor is that inflation isn't willy nilly.

I find it quite interesting that calls for Scottish independence have evaporated recently. Interesting considering that most of the bad apples are Scottish - a Durian part II scenario.

03-28-2009, 07:03 PM	#2
orgagsUpsepsy Join Date Oct 2005 Posts 446 Senior Member	Doubtful. I would be exceptionally worried for the global economy in such an event however if it did happen. One reason being that Britain hasn't been the only country to have a failed bond auction; Germany had seven last year, and another two so far this year. The same has happened in the Netherlands, and I think Spain and Belgium didn't even bother with auctions, anticipating that they would fail. That said, the day after the bond auction failure, another UK one took place that was 3x oversubscribed. The other factor is while Britain has a large banking sytem relative to its economy - there were only two bad apples (HBOS and RBS), Lloyds (took over HBOS), Barclays and HSBC are in far better positions. Most importantly HSBC - the largest UK bank hasn't imploded (otherwise we would really be the brown stuff). The last factor is that inflation isn't willy nilly. I find it quite interesting that calls for Scottish independence have evaporated recently. Interesting considering that most of the bad apples are Scottish - a Durian part II scenario.
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