guarantee only as good as the guarantor

Government bank guarantees..are worth the paper they are written on...about 1c...

But it gives everyone a warm fuzzy feeling....

If their was a colapse in the economy, so bad that the banks could not honour the deposits....where would the government get the money to pay back the depositors...
i may as well give the same guarantee....it means nothing if the crunch came... but the government charges the banks a levy for the privelege