js.b1 wrote
Rod Speed wrote

particularly if say the spanish govt just decided to not allow
withdrawals for what purported to be a timed withdrawal restriction

That is an unknown...

It may be covered under the UK FSCS.

I doubt it would be in that particular situation.

It might be once the purported withdrawal
restriction time expired and they extended it etc.

It may come down to a political problem, re confidence in foreign
banks and UK state saying "you can collect now, we collect later".

I expect they would try to weasel out of that if they could and
that technical difference between a withdrawal restriction and
the bank actually going bust may be enough to weasel on at
least for a while.

Otherwise the global system would simply implode, it relies on
confidence, without it banks will not even talk to one another.

It didn't implode in the days before there were any deposit guarantees by
govt.

History may show the political & economics decisions 1975+ were a
disaster,

Yes, time will tell, particularly if Greece does withdraw from the euro
and that ends up being a complete yawn for everyone except Greece.

in part because they were not with regard
to a system which was inherently flawed.

The trouble has always been with that 'inherently flawed' line is
that those who run that line cant explain why it clearly works for
for the US etc. And they don't even have the option of NewYork
just returning to its own currency again when the **** hits the fan.

Not just the Euro, but everything from credit
to housing supply constriction to education.

Doesn't explain why some operations like the US have made theirs work.

Corse they did have to have a civil war when on group tried to bail out...

Gov't failed in their first remit which is to protect the people
from themselves re bubbles. Mr Magoo (Greenspan) failed.

We havent worked out how to avoid bubbles. We have worked
out how to avoid full great depressions when they inevitably
burst. There were lots of full depressions in the century before
1929 and only very severe recessions since then.

The the spanish etc may consider that they have got worse
than they got in the great depression this time around.