Round two of banking crisis - Alliance and Leicester next??

These guys lost over 7% yesterday. They are down about 45% of share value in less than 3 months.

All it will take is one more bank or lending institution to go pop and the game is up. Inter bank lending is getting more costly again and we are heading into round 2 of the banking crisis.

Wasnt this down to a rumor that they had to approach the BoE for cash ? And the quickly quashed the rumor.

I recall that Northern Rock quashed a few rumours along the way as well…

My point is that perception is everything. The BOE has said that it’s facility to NR can not be indiffinite. Inter bank rates have moved up again and so it is a matter of time before one or two lenders find a queue outside thier door when they turn up for work some morning. It only takes a few percentage points shift in deposit versus borrowed in finance to tip the balance.

Either way the credit crunch that was supposed to ease up after a few months has not done so and is instead intensifying. In a game such as the Irish property racket that is leathel. Hold your cash tight, value is about 1 year away.

How true. I wonder how many pops the Irish economy could withstand?

When you think of how many tales there are out there (prime example is the Jury’s site in Ballsbridge), there could be many a twist yet.

Fresh mortgages is only the tip of the iceberg folks.

What about the Jurys site??? I don’t know what you mean…Maybe I’ve missed a thread. yea it was overpriced, but what has it strecthed a bank a litttle to far :confused:

I like the sound of that. :smiley:
My own estimate, for when value would return to the market, was 2009 at the earliest. But you could be right.