News reports tonight have indicated that British citizens are moving money from UK banks to Irish Banks.
I'd like to thank the Taoiseach for guaranteeing our money !!
However, the European Commission is investigating whether Ireland's plan to guarantee the liabilities of six Irish-owned banks - totalling some 400 billion euros (£316.3bn) - is against competition rules.
well if this is the case, this cant go on for too long, the british goverment and banks will claim it is unfair to the E.U and against compettion rules, then if it is ruled against we are screwed irish banks are gonna fold and the goverment will be left oweing savers billions.
Am i right in saying this could happen?
Perhaps the EU may use this as as a bargaining tool for the lisbon treaty. Vote yes and we'll waiver the competition rules with regards to financial institutions?
Unlikely but it would be a good way for the EU to bully us into voting yes. Watch this space....
There is another way of looking at this. Foreign cash will re-capitalise irish banks, allowing them to reduce their gearing (from 30 to 1 to 10 to one). This is all good.Originally Posted by super pedestrian
And, yes, to a degree, in letting this happen, the EU will restore faith to Irish citizens.
Yeah but what happens when we take all our money back ???
I sometimes wish Germany would take over the running of our country in it's entirety, seek and destroy all corruption and secret deal making and restore the country to transparency and accountability while focusing on building up a manufacturing base in Ireland instead of all this niche crap (low corpo taxes, housing bubbles and now a mini Switzerland in the Atlantic). The worrying thing is that this huge 'gamble' is taking place on the back of a housing bubble - which was also a chaotic event in itself.
Vincent Browne wrote an excellent piece on it....
State must be rewarded for banking guarantee - The Irish Times - Wed, Oct 01, 2008
That is what should happen here. It would be a travesty if as a consequence of Irish citizens taking on such huge risks and thereby rewarding the present shareholders so spectacularly, that they, the shareholders, should be the main beneficiaries.
Apparently, the British Bankers' Association wrote to the government today outlining their concerns about this move.
It's all very confusing - it's either a genius idea or "a panic measure from a keystone cops government" (as one economist said today) depending on which commentator you listen to.
all bankers care about is money. and its flooding out of theirs now into irish ones like the situation we had a few weeks back with money going to the post office.
i bet theres going to be some real preasure coming from the EU now.
EDIT. newstalk has just announced that ulster bank has applied for the same cover. source ? straight from the minister for finances mouth.
Last edited by constitutionus; 1st October 2008 at 10:03 PM.
Expect an Emergency Summit of EU Finance Ministers to agree a pan EU approach.
But I think its obvious that if the Irish Gov get their way the same would have to apply across the board.
If we can't do it then we are ********************ed!
Why the hell didn't the Gov act sooner instead of waiting until it reached this stage?
If they genuinely didn't know then why didn't somebody in Finance or the Central Bank tell them?
TBH I think Cowen & Lenihan are two stooges on this one dancing to the Bankers tunes.
Europa Conventus Delenda Est
whats bothering me CAT is more and more in the dail theyre talking like this was common knowlege for weeks yet in reality only fessing up to it now.
listening to the taniste its pretty fecking obvious theyve dropped the "it aint happening, stop talking down the economy" speil and admitting whats going on. she actually said the banking sector would be ********************ed THAT morning but if they hadve been honest to begin with we might not have ended up with the majority of the country being completly lost as to whats going on.
case in point me own ma.
she's not really that interested in this stuff and its all come out of the BLUE to her, she actuallly came close to going down the bank today and taking out a few grand to stick under the bed because she really doesnt know WHAT the hell is going on and no one in a position of authority is being honest with her. literally took me 20min to convince her she's fine as she doesnt even have the OLD limit in savings let alone over 100k.
THATS inexcuseable.
i KNOW whats going on and when these feckers are lying to me and more important i know where to go to get REAL info on it and act in an informed manner . hiding things not only makes things worse it gives people a reason NOT to trust the government.
ive seen on sky news that there is indeed an emergeny meeting of eu finance ministers being mooted and even talks of a US style bailout for the EU though the brits dont sound fond of it.
i agreee ENTIRELY on your last point. i think this is now about FF looking after its major party donators in the forms of the banks and the builders who are sheiled from paying back theyre loans as the banks are rolling the interest. if a bank goes tits up those loans are sold on to god knows who and there goes the developer if its called in and the bankers on the dole.
i think this is the REAL game at play here.
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