Irish Banks Approach Armageddon

Andrew64

soulsaver wrote: »

I think your money would be safe 'cos of mergers, fresh capital, nationalisation etc. Having said that I wouldn't put new money in....

I also think that's the best move for the time being. Don't take any money out, but don't put any money in - and watch the situation closely.

gozomark

Don't take any money out, but don't put any money in

if its safe enough to leave your money there, why not put more in

conversely, if its not safe enough to put more in, why would you keep your existing savings there

Gwhiz

gozomark wrote: »

Don't take any money out, but don't put any money in

if its safe enough to leave your money there, why not put more in

conversely, if its not safe enough to put more in, why would you keep your existing savings there

Agreed!! I'm now tempted to put more in!

amistupid

Irish Banks Approach Armageddon

Arma geddon out of there!:eek:

ed123_2

...lets hope the shorters got burned today.......

gozomark

ed123 wrote: »

...lets hope the shorters got burned today.......

gets interesting with a rights issue and shorters, as the shorters can get doubly squeezed.

As for them getting burned today, certainly with Anglo Irish, the shorts are largely the same now as they were 2 months ago - the share price was up, what 6c or so today - the average short position was taken out several € higher - 6c is irrelevant, and the share price is still less than half what it was 10 days ago

HankMcSpank

ed123 wrote: »

...lets hope the shorters got burned today.......

I think this is just ignorance.

What difference is there between thinking a share is going up & wanting to make money from it...or thinking a share is going to go down & wanting to make money from it? (& please no "When I go long, it's for the good of society" type replies).

All shorters do is get you to the share price's proper price level faster than otherwise would happen.

gozomark

HankMcSpank wrote: »

I think this is just ignorance.

What difference is there between thinking a share is going up & wanting to make money from it...or thinking a share is going to go down & wanting to make money from it? (& please no "When I go long, it's for the good of society" type replies).

All shorters do is get you to the share price's proper price level faster than otherwise would happen.

up until 6 months ago, I'd have agreed with you 100%. However, in the case of banks I can see reasons for stopping short selling in a crisis as a bank crisis can become self fulfilling in a way it doesn't for non-financial companies

mickW_2

We can expect the Anglo Irish Bank to be taken into Irish Government Ownership very soon looking at the share price. Don't think it can survive otherwise. Might be amalgamated in with Bank of Ireland perhaps.

gozomark wrote: »

http://news.bbc.co.uk/2/hi/business/7782860.stm


Irish banks to be recapitalised







The Irish government is to provide a fund of £9bn (10bn euros) to recapitalise all its listed banks.
The money will be available to AIB, Anglo Irish, Irish Nationwide, Irish Life & Permanent and Bank of Ireland, which owns the Bristol & West bank. However before any money is paid out, the banks must await the outcome of the most recent rights issue.
If private investors choose not to step in, then the state will have to provide the money instead using the fund.
Finance Minister Brian Lenihan told RTE News: "Some financial institutions are so embedded in our economy, in terms of their borrowing and in terms of their deposits, that they are of systemic importance to our economy.
"It's very important that our banking system is seen to sustain our economy and support our economy."
Bank of Ireland and AIB shares have fallen 92% and 88% respectively this year.
Banking fears
The Irish government said the objective of making the fund available was to ensure the long-term sustainability of the banking sector.
It pledged to secure the interests of the taxpayer through appropriate terms and return on the investment.
The Department of Finance said the state may use money from the National Pension Reserve Fund. The move would help boost the flow of funds to the country's struggling economy, it added. BBC business correspondent Joe Lynam said that, as a proportion of its economy and banking sector compared to the UK, the Irish bailout represents an even bigger capital injection than Britain's.

arcadia00

Anglo went under 0.18c today, pulled back to 0.28c since. I'm in this toxic dump, just like I was in all the other toxic dumps like Birmingham Midshires, Bradford & Bingley, Landsbanki, Kaupthing. Rate tarting the top of the best buy tables has been an experience, I'll say that much.