Pardon my ignorance, I´m a layman and not an economist.
It´s dawned on me that my doom predictions for the banks over the last year have thankfully not come about.
I´ve got it wrong. They have not collapsed.
Keeping my first line in mind, can someone with greater knowledge than myself explain how there has not been a run on the banks given the following:
Roughly €1,000 Billion owed by the country between public and private debt.
The State is taking on €50 + Billion of bad loans racked up by banks/developers.
The State which is running massive budget deficits saying it can guarantee your deposit.
Shrinking Tax take and soaring unemployment & outward migration.
So why is there still between €80 ~ €180 Billion on deposit with Irish Banks (Depending on which figure you believe)?
On the face of it you would think that leaving money on deposit with a bank that is only existing due to a guarantee made by a bankrupt government is not guaranteed at all.
Have I been way off the mark, or is a run on the banks inevitable?