nationalise the banks now say economists

[leftandright]

i have never in my wildest dreams imagined that our FF powerlords would perpetuate for so long this snake like deception.This is last chance saloon stuff....the analogy of the drunken gamler in Vegas who is down to his last chips is a soft one. Esteemed economists like Lee, Hobbs and Mc Williams might, to a certain extent , be playing to the gallery given their media profiles, but when we have the majority of economic academia (some with very opposing viewpoints ) all stating that NATIONISATION is the preferred option .............i can only despair.

My heart cries foul and my head yearns for revolution. F**k Fianna Fail , traitors to a man ...................................unless something is done , we as a soverign nation are doomed.

God Bless Ireland

[youngdan]

Powder, it is like a slow motion horror show. The ending is clear. They are praying for the only possible saving miracle. That would be a currency collapse.

[youngdan]

So the plan is likely to be the govt issuing €60,000,000,000 in bonds and giving them to the banks in return for the bad loans. The banks then put the 60 billion IOUs in the vault and everything in the garden will be rosy.

She's a nice girl Rosy.

Exactly Outlander. You only omitted one thing. The banks will be told not to get any wise ideas about thinking about removing them from the vault and, no laughing please, trying to sell them before the ECB agrees to, stop laughing I said, buy them at face value. Nothing to do with Lisbon, OK, ye can start laughing now.

[Outlander]

Agreed Dan - the Brians have lost the run of themselves, and are getting ideas above their station. The €IOU printing machine is in Frankfurt, not Dublin...

[MsAnneThrope]

And now even the IMF recommends temporary nationalisation of the banks.

Does anyone know or hear of the outcome of the cabinet meeting supposedly took place yesterday to discuss the Nama/Nationalisation issue? Or will we be just getting a statement later saying that anyone who doesnt agree with us "should commit suicide"?

[youngdan]

The head guy at Fannie did just that

[BodyofEvidence]

The head guy at Fannie did just that

not funny in the context

[cyberianpan]

Alan Ahearne , special adviser to Lenihan writes a sort of rejoinder in today's Irish Times ... I say sort of as he doesn't address the pricing issue at all

...
Empirical evidence strongly suggests that private banks perform better than nationalised banks. International studies have shown that too much “policy-directed” lending by wholly state-owned banks has retarded economic growth. The simple truth is that nationalisation creates a significant risk of a political rather than a commercial allocation of credit. This would be bad for the banks but even worse for the country.
Nationalisation of the whole of the Irish banking system would send out the inaccurate and unwarranted message internationally that the whole of the banking system was non-viable; this would be a very damaging message at a time that the Government is working to rebuild international confidence in Ireland and its banks.

cYp

[cactusflower]

Alan Ahearne , special adviser to Lenihan writes a sort of rejoinder in today's Irish Times ... I say sort of as he doesn't address the pricing issue at all



cYp

What does "empirical evidence" mean ? Make it up as you go along?

Iceland had state banks. On the recommendation of the IMF they privatised them a few years back. In the IMF's end of 2008 report they said the reason for Iceland's crisis was that they privatised the banks.

[cyberianpan]

What does "empirical evidence" mean ? Make it up as you go along?

Iceland had state banks. On the recommendation of the IMF they privatised them a few years back. In the IMF's end of 2008 report they said the reason for Iceland's crisis was that they privatised the banks.

Ahearne is a well respected economist, I expect he has sources to back up his contention, though I think the IT should cite them...

cYp