What should have happened in Ireland has just happened in EU member state Denmark.
Denmark's first bank collapse since their blanket State guarantee ran out.
Denmark is not in the Euro zone.http://online.barrons.com/article/SB50001424052970204098404576130350689117480.htmlbad news for Amagerbanken's investors and its roughly 700 depositors, whose accounts were worth more than the country's deposit-guarantee limit of 100,000 euros ($135,000). Shareholders and holders of subordinated debt saw their investments wiped out, while holders of senior debt are facing a haircut, or a reduction in asset value.
It leads me to believe that Ireland cannot survive inside the Euro zone.
The CBI is subject to the ECB. Unless the sovereign interests of the citizens can be protected in negotiations, we should plan to leave the Euro.
More ideal would have been strong negotiations with the ECB before the blanket guarantee ran out in Sept 2010.
Then, cash reserves €23bn and the pension fund €25bn, were decent enough and negotiations could have been made with the IMF for any extra funding needed - some €15bn or so to back up an independent currency.
Contrary to common opinion, the IMF don't give a fiddlers about bondholders taking heavy haircuts, they support governments to do that. But the IMF do care that any money they themselves loan to a State, is repaid.
It is the ECB that has dictated the plan of economic destruction.
I am not persuaded by the arguments of the economists that we can negotiate to protect our citizens from
the rapacious ECB.
At this stage, unfortunately some of the cash reserves have been raided and some of the IMF facility has been used to pay bank debt. But it is never too late to make a plan B, to salvage our sovereignty.