Des Peelo "the banking crisis is over"

[meriwether2]

Surely what the big problem is that there is a lack of confidence, so when someone starts to talk-up something, in order to create more confidence, people decry and have a go.

Is there a fundamental lack of understanding in economics here folks?

If you think it's getting bad (or delighting in it), then it will go bad, as you act accordingly, if you think things are getting better, then you behave accordingly, you buy, and thus the economy grows.

There's a difference between creating confidence, and telling lies to create confidence.

This post is straight from the 'those who talked down the economy are to blame' school of thought (FF, 2007).

[MarD]

Surely what the big problem is that there is a lack of confidence, so when someone starts to talk-up something, in order to create more confidence, people decry and have a go.

Is there a fundamental lack of understanding in economics here folks?

If you think it's getting bad (or delighting in it), then it will go bad, as you act accordingly, if you think things are getting better, then you behave accordingly, you buy, and thus the economy grows.

But Confidence is based on what people perceive, no amount of spin will convince people that our property bubble has reached the bottom yet since there is so much unsold housing stock and so many developers teetering.
And there is no way to talk up the economy when the dole queues are getting longer.
Our spending and debt levels were irrational and at some point had to end. There was a fundamental lack of understanding in economics leading up to the crisis. No person or government can constantly live beyond their means. In Ireland a few ECB interest rate rises to protect the big euro economies from inflation started the rot in the housing market here.

The bottom line is that the markets don't lie, investors would love to back some safe solid stocks but can't. Historically low interest rates should bolster share value worldwide but companies need to start turning the corner to convince investors that they will survive the downturn. AIB and BoI are where they are at because they aren't worth anymore, it is simple supply-demand economics.
I don't care how clever Des Peelo thinks he is but the banking crisis here will be over when the markets deem it to be so. Until we see the fallout from some developers going wallop irish banks will not recover. The longer the Government spins out the support to the banks because of their bad debts the longer the problem will persist in Ireland.
What will be important from an Irish perspective is how the Government intend to set up this toxic bank, the banks can't be let off the hook, the gov should only be offering fire-sale pence in the pound to unload this debt, otherwise our rating will be impacted again.

Peelo's former associations make his pronouncements valueless.

[atlantic]

It's not as simple as that.For the last 10 years the Banks have ,along with over leveraging ,spend their time pushing all sort of investment,pension products at people,these investments have now crumbled and people have lost alot of money on their advice.Why would they have any confidence in a system that has let them down and is now been bailout by government.While they are more or less told you gambled and lost,hard luck,lick your wounds and get on with it.

Surely what the big problem is that there is a lack of confidence, so when someone starts to talk-up something, in order to create more confidence, people decry and have a go.

Is there a fundamental lack of understanding in economics here folks?

If you think it's getting bad (or delighting in it), then it will go bad, as you act accordingly, if you think things are getting better, then you behave accordingly, you buy, and thus the economy grows.

[Sensible Head]

It's not as simple as that.For the last 10 years the Banks have ,along with over leveraging ,spend their time pushing all sort of investment,pension products at people,these investments have now crumbled and people have lost alot of money on their advice.Why would they have any confidence in a system that has let them down and is now been bailout by government.While they are more or less told you gambled and lost,hard luck,lick your wounds and get on with it.

The fundamental problem is that it really is bad out there, have a read up on CDS and GM debt defaults .... its flippin scary stuff.

[atlantic]

It is bad and going to get worse,heres a good website that explain CDS,CDO's
Khan Academy

The fundamental problem is that it really is bad out there, have a read up on CDS and GM debt defaults .... its flippin scary stuff.

[Akrasia]

I never found it unreasonable that a taoiseach would get good info on the horses. Sean Lemass loved his racing so did Cosgrave, CJH, Albert & Bertie. Brian even likes a flutter of a Saturday. Only DEV, presumably cos he could not see did not see. I presume the Blueshirt Taoisaigh had no interest...to plebian

Ahern is totally opposed to gambling when it suits him to say so,

"Bertie Ahern was known to him, was aware of all aspects of the project, and was not opposed to the casino".

The Taoiseach replied: "Well I think I was always opposed to gambling. That was always my position."
I oppose gambling and was against casino, says Ahern - National News, Frontpage - Independent.ie

but loves a flutter when he has unexplained bundles of cash that he needs an excuse for. (bugsy malone style)

[stanley]

Bertie Ahern is a totally unprincipled person he just tells you what you want to hear or agrees with you, you walk away relatively happy, he simply forgets the conversation and does what he wants to do regardless of anybody's principles or anything he has said or promised in the past.

He has not got a TCC, Biffo should stop all payments and benefits to him until he is compliant, send the message out to everybody, use the poster boy of the Celtic Pussy to emphasise new realities.

Let him walk the streets of Dublin, from whom does he need protection from, within a week he will be a recluse like Charlie, gone but not forgotten.