Very worrying stop press news re Anglo Irish

Gwhiz

melbury wrote: »

Thanks gozomark.

So if all of the money is still sitting there on deposit, why is there such a panic about the Irish government not being able to afford to recompense savers? If the money still exists, then surely the bank can pay us all.

Where is the panic? I read some people on here who may be, but that's a small minority I would say!

GeorgeHowell

Gwhiz wrote: »

Where is the panic? I read some people on here who may be, but that's a small minority I would say!

Memories are short. This is where we were with Iceland about a week before it all came tumbling down.

Trollfever

The beginning of the end?

Up to 100,000 people have gathered in Dublin city centre to protest at the Irish government's handling of the country's recession.

http://news.bbc.co.uk/1/hi/world/europe/7903518.stm

Midnight_Cowboy_2

Can't see why. Dublin's cuts in public spending have been well publicised, it's difficult to criticise them for trying to manage public finances. If anything, these moves should be welcomed by the people who read this thread because they're concerned about their savings.

Interested_Taxpayer

Midnight_Cowboy wrote: »

Can't see why. Dublin's cuts in public spending have been well publicised, it's difficult to criticise them for trying to manage public finances. If anything, these moves should be welcomed by the people who read this thread because they're concerned about their savings.

Could not agree more. About time our government started on the UK public sector.:mad:

gozomark

they will be very soon, have no choice

JamesJames101

No-one yet has reponded to my comment that even if (really big if) there were no buyers for Irish bonds (so they had to default), and then assuming that IMF, Eurozone, EU, sovereign wealth funds would not buy the bonds (getting silly) then the Irish government still would not be able to walk away from its obligations. They have written the guarantee into law so how could they?

Someone said that if the Irish government could not refuse to honour its committments to savers then what is this thread and comments all about - exactly!

I was not aware that Iceland had guaranteed savings - because it didn't. Therefore the two cases are not comparable.

In response to obvious comment as to why I am reading this thread then, answer twofold: 1) I was concerned a few weeks ago - but now I'm not 2) I'm interested to see what others are saying

George - you seem to have got caught up in the Iceland situation and are very bearish on the subject - 1) did you actually lose any money from the Icelandic position and 2) isn't Iceland now being leant money so that it can pay its commitments anyway?

gozomark

They have written the guarantee into law so how could they?

the risk is they rewrite the law - after all its an Irish law, to be upheld in Irish courts - countries have walked away from their obligations before - I really don't think they would (the long term implications for Ireland would be massive) , but they could

joemardo1

according to latest Irish newspapers reports last year before nationalisation there was in effect a run on the bank when over £5 billion was withdrawn in retail deposits in one week. I must admit that is all news to me as I hadn't a clue.

Now in one of todays Irish papers they say they is growing consusus to have a unity government to try to combat the bad downturn.

JP45

gozomark wrote: »

They have written the guarantee into law so how could they?

the risk is they rewrite the law - after all its an Irish law, to be upheld in Irish courts - countries have walked away from their obligations before - I really don't think they would (the long term implications for Ireland would be massive) , but they could

Totally agree. But it's not just the long term implications for Ireland. If Ireland were to fail to honour its guarantee then the implications for Europe and the wider banking community would be profound.

I believe such a move would seriously undermine what little confidence is left in the banking industry. It could well spark a run on banks in general from both ordinary depositors and fund managers. It's for this reason, ie self-interest rather than charity, that I believe others (Germany, the ECB or the IMF) would come to the rescue.