Seth Freedman writes about the government's decision to guarantee all the savings UK savers put in Icesave . Politically, it does seem to be a necessary measure - since no government wants to see the bad headlines that would follow if they didn't do this.
However, strictly speaking, it should be Iceland that should be looking after Icesave. The government has stepped in simply because it seems that Iceland can't meet its obligations.
Seth rightly points out that savers should be more grateful at this unlimited guarantee the UK government has given to UK customers of this foreign bank. Instead, they seem to treat it as an entitlement. The fact is - people put the money with Icesave to get higher interest than from National Savings or UK banks. That higher interest does come with higher risks. They should have realised that.
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