Maybe I just haven’t looked hard enough, but I can see very little real discussion in the media as to why the government have initiated the guarantee. It strikes me that this is the result of the years of corruption and Galway tent shennagins. ‘Friends’ of the government look like going down via a bank collapse so they call their buddies to inform them that if they go down, they will go down singing. Hence the panicked reaction.
in other news, tinfoil supplies are dangerously low…
I hate FF with a passion but not even I could believe this
I would have thought the imminent collapse of the banking system would have been enough for them to do something.
I have one thing to say to that, Bertie’s loan from AIB and the ‘missing’ documents…
As much as I don’t like banks and some of the people who run them, having several of them going wallop was hardly an option.
I think some people need to get a grip. There are a few ones around here who I suspect wouldn’t be happy unless the country fell apart at the seams!
watch as they attempt to turn this into a floor on house prices. This will combine with affordable housing schemes to clear the housing excess stock and destroy the nations long term future.
The puss needs to be squeezed out the hard way. A quick HARD bang to earth is better for us than this long term purgatory.
Shares in Alcoa doing well then?
Thats what this is for.The gov has just put a 50ft thick raft of concrete under house prices,add in AH to be filled with “asylum seekers” to fill all the empties paid for by taxation,the iminent ECB rate cut - I would say barring the 20% property prices have left further to fall,it is job done.
Unless there is a total economic worldwide collapse,(US taxpayer is going to bail out US banks now so unlikely)the banks have I’m afraid got away with it,sorry for all those hoping prices would crash to where they could afford to buy,but the govt were never going to let that happen - they are prepared to bet the entire country on ensuring house prices don’t fall.
If now isn’t a time for pitchforks and torches,there never will be.
Not so sure. There is a couple of trillion of mortgage backed securities around. There is a quadrillion dollars of derivatives and no one knows exactly what will happen when these start unwinding. Injecting seven hundred billion over a few years is like pissing into the ocean and thinking you’re making a difference. The central banks of Europe, USA and Asia have already put two times that of liquidity into the system with little to show for.
Yeah, I agree with you, Dom, 700 bn is chicken-feed, especially if it ends up propping up very insolvent banks just because they are chums…
Then you must too young to remember the ICI bailout of 1984. A direct transfer of several hundred million pounds of tax payers money to AIB. Multiply that figure by 7 for the modern equivalent.
The tax payer has just been landed with a bill of many tens of billions of euros in order to prevent one bank collapsing. Anglo Irish. A quick look at the brown envelope trail will show you why it was saved, and for whose benefit.
In a normal country there would have been a bunch of white shotgun weddings between some or all of the Irish banks and bigger foreign partners. But that would have meant an end to the waterfall of brown envelopes and mutual back scratchery. Spanish and French banks are well used to a political culture of quid-pro-quo and flexible public morality but even they I think would draw the line at what passes for business as usual in Ireland. And as for the Germans, despite their their ‘unusual’ Landesbank culture, dont even ask…
This is not a bail out for the builders. It is a bail out for the ‘crony capitalism’ ruling class…
“Never attribute to malice that which can be adequately explained by stupidity.” Having said that I can eaaaasily believe that there is a metic TONNE of dirt about FF that they wouldn’t want to see the light of day that might be used against them. I just don’t believe that there is even a need for that threat to be made against them. I believe they are actually trying to act in the public interest here. Or as close to it as they get.
as I understand it PROFESSORI there has never been a bubble market that has failed to correct itself eventually. Now if you’re saying that there’ll be no short sharp correction then I agree that this could have the makings of a second Japan. But if you’re saying that you think this is a hard floor and that it will only go up from here then that is where we will have to disagree. If that were to happen then Ireland would be the first time this every happened in the history of the world (or such is my understanding). And I just don’t think Ireland is somehow different. With the sh!t hitting the fan both domestically and internationally it seems highly unlikely to me that any measure by the gubberment could do anything more than delay the correction.
exactly…a phyric victory is of no use to anyone at the moment…
“i told ya so, i told ya so” he sings as he quickly realsies that his bank account is gone and he can’t buy food to eat.
The government is merely ensuring that it has blown its room for manoeuvre by trying to resist the inevitable drop, rather than keeping the powder dry until it could make a real difference.
Ireland inc has been borrowing 60bn a year to have the celtic tiger pissup - that’s over and the recession is here. The effect of that alone will be more than enough trouble for the government, without taking on the bad debts of a decade of reckless lending from the banks.
With GDP shrinking by the month, and a government deficit heading into double digits, how long do you think the illusion that the government can keep the banks afloat will last?
“Never attribute to malice that which can be adequately explained by stupidity.”
aka Hanlons Razor. Shine up the tinfoil hats so we can see them lads and then go to this wide ranging thread here.
It might be a floor, but its a floor in a lift. We have enough empty housing to house nearly one million people, more than five times the number of empty homes that exist in the UK. We have zoned land that will accommodate another 500,000 thousand homes. Rental values which traditionally underpin capital values are lower today than they were six years ago, and rental values continue to fall. Now add the end of easy credit conditions that are unlikely to return in the next decade, and an economy that’s entered recession with government finances already threadbare. I hope we get this over with as speedily as possible.