Why Gordon Brown Demurs over Deposit Guarantees

The man on the Clapham omnibus may be wondering why Gordon Brown doesn't do for UK savers and wholesale lenders what the Irish did for funders of their leading banks this week.

Ireland
GDP: EUR 180bn
Debt: EUR 40bn (22% GDP)
Financial sector liabilities guaranteed: EUR400bn (2.2x GDP, 10x Debt)

UK
GDP: £1420bn
Debt: £614bn (43% GDP)
Financial sector liabilities (p T70 of first document): £6,000bn (4.2x GDP, 10x Debt)

The six trillion pound put? It's hard to see it. Of course, the bus-traveller is already heading down to his local Irish bank satellite branch, hard earned savings in hand (lest we forget, savings globally are always "hard earned"). That should start to reduce UK bank sector liabilities, we just have to find a way of liquidating assets to pay him. EuroTARP anyone?