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

[ludermor]

what happens now?

[muppet]

what happens now?

If it was Ireland they would vote again and again.

Hard to know what happens. Party ideology seems to have scuppered it. Republicans seemd to think this was A commie trojan horse.

[passedit]

what happens now?

If it was Ireland they would vote again and again.

Hard to know what happens. Party ideology seems to have scuppered it. Republicans seemd to think this was A commie trojan horse.

This appears to be what is happening?

[heganboy]

classic- nasdaw has stopped trading- maybe even on purpose...

[give her dixie]

The sky is falling in.....

[Bogball XV]

The House of Representatives votes NO!! 

If the markets were rough today wait till tomorrow. 

DOW Jones down 6% or 690 points. Unbelievable.

Markets may not open tomorrow. Time for a pint.

and to think the early falls on the dow were attributed to 'Wall Street not liking the amount of conditions included in the bill', you know the type of thing, 1. You can't just use the money for salaries and bonuses  2. You will have to repay the money over the years.....

[mannix]

fan. shit. hit.
do the wordplay. Looks like a disaster could unfold.

[pintsofguinness]

what happens now?

Just what I was going to ask.   

Are the banks just going to be left to collapse? 
Can one of you smart boys not put the affects of this in plain english?

[Declan]

Can one of you smart boys not put the affects of this in plain english?

Don't think anyone can honestly predict what's going to happen next. This is history in the making and the consequences for the next 25/30 years could be huge.
In reality there is no real connection between the bail out for the states and the problems with Irish banks but in times of panic everything is linked - That's globalisation for ye!!

[Bogball XV]

what happens now?

Just what I was going to ask.   

Are the banks just going to be left to collapse? 
Can one of you smart boys not put the affects of this in plain english?

well not a smart boy - but, there is talk that bush is going to railroad this through regardless using special executive powers he granted himself recently.  If not, it might be for the best that this failed as it allows the system to work itself out and allows those who created (or were oblivious to) the problems to be properly punished and in time the capital markets will get back to doing what they should do - ie provide capital, the whole basis for this was in order to have banks start trusting each other again more quickly than will happen is things are left to evolve normally, but it would have been at enormous cost to the taxpayer.
It'll still probably go through is some shape or form is my bet.

[J70]

Can Bush do that? I thought his spending proposals had to be approved by congress? Can't see him getting away with something like that without setting off some kind of constitutional crisis.

[muppet]

I am financially illiterate so take this with a serious health warning.

The rates at which banks lend to each other, typically very short term loans, stayed high today, even when the plan looked on. That means banks would have continued not lending to each other even if it went through. With the cancer of sub-prime still on their books they will not lend now.

Banks not lending will have a massive impact on business, industry, banking and of course property. Economic growth will grind to a halt. Any business anywhere experiencing cash flow problems, that in any other scenario would borrow money, will probably fail. Big rise in unemployment on the way.

Consider the US bankrupcy protection. If you have a contact to supply something to a business that files for Chapter 11 protection you will, by law, have to continue supplying without being paid. Businesses will become as paranoid as the banks are about doing business.

Likely tax increases here. I am praying that the (relatively very young) Euro doesn't wobble or else we will have interest rate rises.

Recession will seem like heaven in a few months. depression will be the order of the day.

However I expect the sun to rise tomorrow, despite everything.

[magickingdom]

I am financially illiterate so take this with a serious health warning.

The rates at which banks lend to each other, typically very short term loans, stayed high today, even when the plan looked on. That means banks would have continued not lending to each other even if it went through. With the cancer of sub-prime still on their books they will not lend now.

Banks not lending will have a massive impact on business, industry, banking and of course property. Economic growth will grind to a halt. Any business anywhere experiencing cash flow problems, that in any other scenario would borrow money, will probably fail. Big rise in unemployment on the way.

Consider the US bankrupcy protection. If you have a contact to supply something to a business that files for Chapter 11 protection you will, by law, have to continue supplying without being paid. Businesses will become as paranoid as the banks are about doing business.

Likely tax increases here. I am praying that the (relatively very young) Euro doesn't wobble or else we will have interest rate rises.

Recession will seem like heaven in a few months. depression will be the order of the day.

However I expect the sun to rise tomorrow, despite everything.

you get paid for any goods supplied after the chapter 11 filing, its the supplies before that that you might lose out on

[muppet]

I am financially illiterate so take this with a serious health warning.

The rates at which banks lend to each other, typically very short term loans, stayed high today, even when the plan looked on. That means banks would have continued not lending to each other even if it went through. With the cancer of sub-prime still on their books they will not lend now.

Banks not lending will have a massive impact on business, industry, banking and of course property. Economic growth will grind to a halt. Any business anywhere experiencing cash flow problems, that in any other scenario would borrow money, will probably fail. Big rise in unemployment on the way.

Consider the US bankrupcy protection. If you have a contact to supply something to a business that files for Chapter 11 protection you will, by law, have to continue supplying without being paid. Businesses will become as paranoid as the banks are about doing business.

Likely tax increases here. I am praying that the (relatively very young) Euro doesn't wobble or else we will have interest rate rises.

Recession will seem like heaven in a few months. depression will be the order of the day.

However I expect the sun to rise tomorrow, despite everything.

you get paid for any goods supplied after the chapter 11 filing, its the supplies before that that you might lose out on

I stand corrected.

Does that apply to staff?

Still it would mean cash on delivery or up front only, definately no credit.

Tomorrow will be interesting in the States, particularly for the high street banks. 

[pintsofguinness]

So if the banks wont/cant lend to each other, they won't/can't lend to people and businesses and everything is fucked?
All very interesting lads - and depresssing

Are the UK/Irish banks in as bad a situation as the US banks or is this something that's going to spread to us?

What exactly was the start of all of this - was it simply down to too much money being loaned out?


Why are people queuing at atm machines?