[quote=barnaby33]I wouldn’t bet on the pound rising much soon, at least not in any long term or structural sense. England’s banking problem is almost as immense as Iceland’s. Its a small country, relative to the size of its banking industry. Its currency isn’t a reserve and its banks took even more risks than US banks.

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What does the UK produce that anybody wants?

The City on the Thames benefited from all the oil money as the Arabs, and the Russians, after 9/11, invested via London.

Now that the oil wealth is evaporating and the Middle Eastern countries have budget deficits, I don’t see London rising anytime soon.

As 9/11 becomes of a memory, oil money can again flow directly to New York and to the new money centers in the world (Dubai, Singapore, Shanghai, etc..)

It would be ironic if the UK end up having to beg to join the Euro zone.