How does general bank collapse in US affect Irish property

I have seen a few reports recently that banks and securities firms still have massive exposure to sub-prime. Considering that deposit accounts are only insured to 100,000 USD over there I could see a scenario of a run on their banks in general, thereby causing the banks to drop below their minimum deposit asset value. The US govt. must be very worried at this stage as they don’t have the money to insure and take over every private bank in such a mass panic, it would put the US national debt up to an astronomical figure, thereby further downgrading the dollar and resulting in a mass selloff of US stocks and property. China and the Gulf economies would suffer huge write-offs and exporters in Asia wouldn’t be able to see anything into the US market. Can anybody see this armaggedon scenario developing. Normally I wouldn’t be into promoting this type of thing but I saw a finance professor from Pace university on CNN who said that all the major security fims in the US still have huge amounts of bad loans on their books i.e. they are all potential Bearn Stean and IndyMac banks.
Could the worst happen, I think it is finely balanced at the moment, considering the US national debt is like a huge weight on the end of a see-saw, a domestic panic in the US would quickly evolve into global runs on banks and massive losses in US denominated assets, it can’t keep going up indefinitely without causing structural change in US dollar valuation and basically global panic. Just like the credit bubble the US national debt must be a disaster waiting to happen.

You are right, it looks very, very worrying at the minute. There is a real possibility now that the entire US financial system could go into complete meltdown. It’s hard to see what they can do to prevent it. I’ve long been of the opinion that the much-vaunted US Economic Superiority was just more spoofery, they’ve probably been effectively bust since the mid-80s.

Unless Bernanke can pull another hyperinflationary asset bubble out of the hat to keep the show on the road for another few years, this time really does look like End Of The Road. Some sort of managed decline over a period of a few years might be better for everyone than a sudden massive catastrophic collapse though, because God only knows what way the shrapnel would fly and what “collatoral damage” would be done to everybody else!

A suddenly-collapsing US economy would almost certainly take Ireland’s economy down with it, as things stand. A US economy in terminal decline though gives us a couple of years to try and escape the blast radius, as far as is possible.

spoofery… well the greatest example of that still has to be rule 6102, it ensured that the bretton woods regime was honoured but not necessarily on gold that anybody had! (google rule 6102 to learn about it, basically FDR confiscated everybody’s gold!)

Here ya go

Which is exactly what he’s done. Money supply continues to increase and that excess liquidity needed a new home. It found it. In commodities. This was the first bubble to impinge directly on the inflation indicators. Now Bernanke’s in a bind. Before this, Greenspan could just jaw jaw and nobody gave a toss because the bubbles kept the US out of recession and didn’t impact inflation.

If he pulls liquidity the banks fold. If he doesn’t they continue to fund the commodity bubble.

It was reported last week that money supply growth is slowing by some measures in the US and the UK. Not sure if this is a temporary anomaly.