Jim Rogers, who co-founded the Quantum fund with George Soros, has told Bloomberg:
"I would urge you to sell any sterling you might have. It's finished. I hate to say it, but I would not put any money in the UK".
In the short term Sterling will undoubtedly fall further (and many people who short it will make fortunes out of its demise). Indeed Sterling today fell below $1.40 to its lowest point in over seven years, because of concerns about the banking crisis and debt levels.
However, currencies strengths are relative. No other developed country will escape the recession. The Euro will, in the not too distant future collapse as the folly of the "inflexible" high interest rate policy of the ECB is laid bare. The Dollar will also fall as America's economy worsens.
Sterling will rise again.