Will Scotland break away?

The Telegraph:

Investors have pulled money out of the UK at the fastest pace seen since the financial crisis of 2008 amid fears that Scotland will break away from the Union, triggering a broader political crisis.

Net flows out of Britain hit $27.3bn (£16.8bn) in August, the highest seen since Lehman Brothers collapsed, according to investment advisory firm CrossBorder Capital. Deutsche Bank said on Friday: “A Yes vote for Scottish independence on Thursday would go down in history as a political and economic mistake as large as Winston Churchill’s decision in 1925 to return the pound to the Gold Standard or the failure of the Federal Reserve to provide sufficient liquidity to the US banking system, which we now know brought on the Great Depression in the US.”

The report shows that inflows have “effectively collapsed”, said Mr Howell, adding that only Japan is now seeing money being pulled out of the country at a faster rate.

So far this year the UK has experienced a net $206bn (£127bn) outflow, as money available for financial investment left the country. In 2013, a net $63bn (£39bn) flowed into the nation’s economy.

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