Well now, so the credit crunch is also affecting those nice burly Russian chaps in the Mercs with blacked out windows who were funding the Icelandic banks … or so the rumours go.
aaaagh bo**ix! there goes plan B! I have 5 INBS share accounts carefully nurtured over years waiting for payday - twas looking at one stage like 5 x maybe €12k might be enough to buy a post-crash cottage… timing, timing…
Don’t you worry, the Icelandics will pay €2bn for the INBS any day now, in hard cash of course
Those who contend that we should not be in the € should follow this story carefully. It is likely that we would be in a similar position if we had retained the IR£.
The IMF will be calling soon I think.
The € is our only shield against financial meltdown.
Does this mean it’s affordable to visit Iceland now?
Icelandic banks = Credit Anstaldt?
It’s all relative. The pint might be 8euro rather than 10!
This paragraph in a FT article on Iceland today got me wondering if Ireland could face a similar problem if a major banking crisis took hold here:
"Most pernicious of all, the speed at which Iceland’s banking assets have grown relative to GDP has left investors worrying whether the government would have sufficient firepower to bail out the banking system if it did tip into full crisis. Or, as Prof Portes has observed: “The question arises whether the banks are not just too big to fail but also too big to rescue.”"
There seems to be a widespread assumption that the Irish Govt would just step in and save the day if a major irish bank went belly up but do Pinsters think we would have the aforementioned firepower to do this??
Link to full article:
ft.com/cms/s/0/162ac164-fb6a … 07658.html
This proverb probably sums up the situation:
Owe the bank a hundred euros - it’s your problem.
Owe the bank a million euros - it’s their problem.
Owe the bank a billion euros - it’s the government’s problem.
Well the Market does understand it.
Iceland looks like being the first Country to go bang in this affair.
God Bless the good ship €uro and all who sail in her. Thank Christ we jumped aboard.
In a separate thread:
The above article is by Ambrose Evans-Pritchard and is also repeated in todays indo. How, I wonder, does it square with his belief that the euro is doomed? Can a currency be too big to fail??
i remember when i bought my house a decade ago that the solicitor who was dealing with the purchase had said to me at the time. the irish housing market has never crashed it only rises and Plateaus.
is this what we experiencing.
is the market going to plateau for the next ten years or more?
Ambrose is a loony little England right winger , read his “The Secret Life of Bill Clinton” to get an accurate idea of what he is like.
The only surprise is that Ambrose stopped short of claiming Hilary is an Alien.
it’s a downward facing precipice type plateau
McD conclusion isn’t far of TUG’s feelings that this was shaping up to be 5 year Job