The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[lynchbhoy]

mental man and main st
I would agree with what you are saying.
its a farce. We (taxpayer) need to be getting a GUARANTEED return on our 'gamble'/endorsement (a la insurance policy)
from these banks. They have plenty of cash from times past and once they get over this (looking more likely now that the gov has bankrolled them) they will begin to earn pots more from us.
I'd insist that they pay for the service, whether they use it or not.
but what can we the little people do.
feck all imo.

[nifan]

We the taxpayer would be as well served from banks not collapsing as much as any guarenteed return we might see.

[muppet]

We the taxpayer would be as well served from banks not collapsing as much as any guarenteed return we might see.

The Government had no choice. They had to issue the guarantee or we would have been what Iceland now is.

Saying they could issue it knowing they could never afford to pay up is nonsense. They could end up paying a large proportion of it yet.

The EU commission now complaining about anti-competition laws is like introducing property taxes after an earthquake has levelled the place. Any interference from Europe will shut the Irish banking industry.

The EU says it will not allow any significant institution go under. Even in its entirety Ireland's financial institutions are not significant to the EU.

We could be out of the Euro shortly the way this is going.

[Mentalman]

We the taxpayer would be as well served from banks not collapsing as much as any guarenteed return we might see.

The Government had no choice. They had to issue the guarantee or we would have been what Iceland now is.

While I would agree the government had to do something, comparing our situation to Iceland is comparing apples with oranges - they have been running inflation in double digits for two years now, and their currency has been under almost constant attack from speculators. They were in trouble long before the credit crunch. Had we not been inside the Euro we would have been open to just such speculation, similar to the Soros lead attack in the early 90s where Bertie Ahern had to announce a 10+% rise in interest rates in one day.

I'm not sure the European commission will be in any position to question the government on their policy given what is about to/has happened in Germany & the UK in the past hours, however perhaps if they are seen to charge a nominal fee for this guarantee we the tax payers have given (2 billion as opposed to the commercial charge of 12/15 billion) they would have less grounds for complaint. To say the banks will only pay for this service if they have cause to use it is, IMHO, complete bollocks. If Anglo are to need it, not unlikely, are we the taxpayers to simply fork out milions/billions, a small percentage of which will be paid back?

Let's face it, of the 5 or 6 institutions covered by this guarantee, 2 have been run very prudently, and are never likely to need it. One has been run recklessly, and prompted this action as collapse, according to the market, was almost imminent. The correct action in that case was to do has we have seen in the rest of Europe - the government steps in to take control of the institution, sacks the board, and either nationalises it, or finds a buyer. Instead they have effectively rewarded recklessness, and guaranteed it with our money, at a time when we are looking to borrow 9 billion just to provide the services provided in the state last year. The likelihod is this gamble will work out, however we are in deep shit if it doesn't.

[Donagh]

Donagh,
There is a big difference between builders and developers. Its the developers that have taken the cream over the last decade and the developer that has borrowed hugely and gambled. Builders generally build. There have been a few that developed their own and they are the ones in big trouble now ( McNamaras, Elliots, Pierce)

I know what you are saying luder, I just don't agree. 

[Gnevin]

We could be out of the Euro shortly the way this is going.

is the Euro in trouble ? Why so much doom and gloom surrounds it at the moment?

[Main Street]

is the Euro in trouble ? Why so much doom and gloom surrounds it at the moment?

Looks like you're having a nice time with discovering the wonderful world of them Light Pale Ales 
I don't know but maybe the doom is slightly connected to people having a real fear of not having enough of them Euros.
Maybe something to do with dissapearing savings and pensions and rising unemployment.
Maybee the gloom reflects the level of realistic expectations about impending hardships.

But not to worry about that Gnevin, it's only the poorer people who do the real suffering.
It's happened in England but it can't happen here can it?
300,000 savings accounts closed in England is nothing to worry about, is it?
Not when there is the   rat a tat tat  - Government Guarentee.
And Ireland has -  wait for it -  the  Unlimited Government Guarantee.

They will be telling that fairy story to the children in years to come.
The day they spun the Unlimited Government Guarantee and some people still had hope in it.

[Donagh]

ISEQ down another 5% this morning with the banks taking the worst of the hammering.

[the Deel Rover]

ISEQ down another 5% this morning with the banks taking the worst of the hammering.

The certainly are anglo down to € 2.60 boi to  €3.29 even with the govenrment guarantee it looks people are running scared from the banks 

[gerrykeegan]

Donagh

Are you George Lee by any chance?

[Donagh]

Donagh

Are you George Lee by any chance?

Nah, just considering buying the wife a bank for Christmas 

[orangeman]

Freefall !!!!!!!!!!! What's happening ?

[Billys Boots]

I don't know how many gobsheens have tried to sell me a pension in the last fortnight - do they reckon I'm deaf, blind and stupid?

On second thoughts, don't answer that.

[pintsofguinness]

I don't know how many gobsheens have tried to sell me a pension in the last fortnight - do they reckon I'm deaf, blind and stupid?

On second thoughts, don't answer that.

I got a letter from my bank asking me do I want £15,000 yesterady - I think they probably expect me to pay it back at some stage so I won't be taking them up in their kind offer - but still! I thought there was a credit crunch!

[muppet]

I don't know how many gobsheens have tried to sell me a pension in the last fortnight - do they reckon I'm deaf, blind and stupid?

On second thoughts, don't answer that.

I got a letter from my bank asking me do I want £15,000 yesterady - I think they probably expect me to pay it back at some stage so I won't be taking them up in their kind offer - but still! I thought there was a credit crunch!

I understood it was illegal for banks to solicit customers for loans. But I have heard of it happening alright. There should be immediate prosecution of any institution found in breach of the law. This is where our guarantee, that some think we will never no matter what have to pay, suddenly becomes a monster as our banks think it gives them carte blanche to dish out loans everywhere knowing they carry the taxpayer's backing.

P.S. Mentalman when I said we would have been Iceland I meant that our banking system would have been closed last week as theirs was this week.