Probably thinks there isn't a problem,government just gets in the way,back off and let those dynamic bankers and property developers rescue the situation.Unless he's hanging from a lamp post singing Joy Division's 'She's Lost Control'.Originally Posted by doubleglaze
I can't help but feel there is something more to it than what we are seeing. I mean they might upset a lot of shareholders, but they were already pretty upset. The benefits to the wider economy and the country as a whole should outweigh them at the ballot box. The amount of money NAMA will be lashing out could be better spent almost anywhere else (how many industries could you found with those shekels?), and its very much into the realms of funny money for a country like Ireland.
What other vested interest could FF have to be going through these contortions to keep the banks private? It couldn't be something as simple as senior party members having large shareholdings in the banks could it?
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The shareholders are wiped out already. so thats a null argument. But eamonn ryan was on newstalk saying "we must protect them" or some such old guff..
I dont htink they understand, to be honest, what is going on.
edit : this is now on the FT alphaville section....
They have been wiped out but hope springs eternal. Government TDS still have nightmares about angry OAPs marching after the free medical card was removed. Can you imagine the reaction if pension funds were completely eviscerated - with no hope of recovery?
but the fecking funds are already eviscerated! Reality check people....
Quote from schindlers list, when Oskar hoses down the train carriages as the blazing sun torments the Jewish deportees.
thats just cruel Oskar, you are giving these people hope, thats really cruel.
exactly....bank shares will recover value in time... its not all about the here and now! its mostly an issue for those needing to sell or retiring. I can see AIB back AT €10 in 5 years
The funds are gone, down, underwater, dried up and fried up.
Truth is the country as many others is doomed and this is the time for drastic change in policy making, participative dialogue, and innovative decision-making.
The solution may lie in the State nationalizing the banks, as suggested by the pannel of academics quoted. I agree with the botton line, but the State has too often failed in the mission centralizing business and managing/controling it. The State has often made a mess of stepping in for the private sector- and not only in Ireland, I am talking more broadly from an academic perspective.
Perhaps the solution is a private sector/public sector partnership, and a national unity government, and the idea has been around lately, but I honnestly think as much as this could be the solution, it would be way too forward thinking to be applied by handfuls of cronies in Kildare street and in the vicinity of St Stephen's Green.
The idea is not for the State to take over banks, hence expropriating shareholders, but to manage the banks, with a broad concensus across the political board (hence the unity government), and steer them back to shore, without putting too much burden on taxpayers, and also scaring investors away (if there are any still out there).
I'm not sure if the distinction I made is clear, but I, for one, would never trust a State to manage private interest. I can already see the scandals etc, looming!
to go from .8 to 10.0 in 5 years would require 27% per annum compound growth each and every year. Think thats possible?
Are the bondholders not insured?
Nationalisation should mean that the Guarantee becomes redundant, as the government would own the banks.
While it may be a lesser evil than Nama, nationalisation would still dump the vast losses of a handful of speculators onto the public.
There is no handy solution for Ireland in this. Terrible damage has been done.
Irish Nationwide and Anglo Irish, whose main bad debts only involve a couple of hundred signficant investors, should be been put into an orderly closure, with government oversight of a salvage operation on their assets. A full opening of the books of AIB and BOI should be followed either by nationalisation or by letting the market sort them out and setting up a new, clean State Bank.
The moneys poured in so far have disappeared without a trace of impact.
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