The banks even more fucked up today (1 Viewer)

[Wobbler]

The brother reckons that the government might have to nationalise AIB and Bank Of Ireland.

 

[the strange guy]

What are the pros and cons?
As far as I can tell the shareholders lose their investment,
deposits are guaranteed by the state but that the state
also takes the risk when handing out mortgages for
homes that probably won't hold their value. Is that
incorrect?

Does the government plan to float the banks back on
the market and make a profit in a few years time? Do
the original shareholders have to buy new shares?
It's pretty interesting.

 

[dleacht]

All I know is if they nationalise either deposits are guaranteed and therefore my money (the little I have) is safe

 

[Denny Oubidoux]

i just read an article there a minute ago in which some guy was saying that some banks (anglo irish i think and another the government has guaranteed) have huge debts that are likely to be called in and that the state wont have enough money to pay it - what will that mean? even bigger debts for the country or what?

 

[ann post]

i dont like it, come next election, are people going to vote honestly if the current govt owns their savings?? i wont.

 

[magicbastarder]

All I know is if they nationalise either deposits are guaranteed and therefore my money (the little I have) is safe

your deposits are already protected.
what nationalising the banks would do is expose the government directly to any bad debt held by the banks.
however, the damage to the economy if either bank went under is something the government desperately wants to avoid.

 

[Wobbler]

What are the pros and cons?

Of nationalisation?

Pro: The banks don't go under. This would have disastrous consequences for the economy.

Con: It will cost the tax payer absolutely serious money.

I honestly don't know whether the pro out ways the con.

The above is just my understanding, I'm really not sure.

 

[Wobbler]

As far as I can tell the shareholders lose their investment,
.............................................
also takes the risk when handing out mortgages for
homes that probably won't hold their value. Is that
incorrect?

Does the government plan to float the banks back on
the market and make a profit in a few years time? Do
the original shareholders have to buy new shares?
It's pretty interesting.

The shares will probably be valued by some independent crowd so the investors will get back a fraction of what they pit into it. Fuck them though, it's unfortunate but it's the nature of gambling.

I'd imagine the state would be very keen to get rid of the banks a few years down the line.

I doubt the original investors will have to buy new shares.

Again, I could be wrong on any or all of this.

 

[GO]

I don't understand any of it,but I'm filled with a low level dread of whats in store.

This might sound mad but I am happy to have absolutely no money for once.

 

[Wobbler]

I'm off to bed. Hopefully it will be alright in the morning. It usually is.

 

[GO]

Nighty night Wobbles.

 

[aoboa]

Depressing. This is one of a load of articles by economists and people in the know who reckon this nationalisation is a disaster:
http://www.irishtimes.com/newspaper/opinion/2009/0120/1232059661333.html

 

[RSJ]

I for one really want to see Band Of Ireland collapse. That would mean i wouldn't have to pay them the e13,000 i owe them on my loan and credit card, right? And what's the chances of MBNA dying and leaving me off the e5000 i owe them and all? This recession could be the best thing to happen to me in ages.

 

[aoboa]

I for one really want to see Band Of Ireland collapse. That would mean i wouldn't have to pay them the e13,000 i owe them on my loan and credit card, right? And what's the chances of MBNA dying and leaving me off the e5000 i owe them and all? This recession could be the best thing to happen to me in ages.

Nah man, your debts will be sold off to someone else.

 

[Scientician 0.8]

Welcome to Albania.

 

[RSJ]

Ah balls.

 

[magicbastarder]

economists and people in the know

yeah, there's shitloads of them.

 

[Pantone247]

Depressing. This is one of a load of articles by economists and people in the know who reckon this nationalisation is a disaster:
http://www.irishtimes.com/newspaper/opinion/2009/0120/1232059661333.html

this made me want to cry

it's really sickening to think that even in these times of crisis the Irish government is still operating like some old boys club looking out for the best interests of shady business men and property developers

The Irish Times has BofI worth 341 million and AIB worth 500 million, or so, today... that's piss all in fairness, I imagine the property the branches are built on has to be worth more then that.... nicht gut...

 

[magicbastarder]

The Irish Times has BofI worth 341 million and AIB worth 500 million, or so, today... that's piss all in fairness, I imagine the property the branches are built on has to be worth more then that.... nicht gut...

market sentiment is rarely going to be an accurate assessment of a company's true value, though.

 

[RSJ]

As the private sector haemorrhages jobs it is hard to see how Irish national income will fall by less than 20 to 25 per cent in the next few years. Unemployment will easily reach 15 per cent by the end of the summer, and 20 per cent by next year, and will not start to fall until recovery in Britain and elsewhere permits mass emigration to resume.

Christ twice. I'd not seen the recession put in such stark terms before. No bloody chance of me coming back now.

And here, this is probably a stupid question, but if buying up the banks bankrupts the country, what *actually* happens? Our currency can't devalue, but will prices of stuff go nuts (and if so, why), or will we all be looking at 50% tax and all the hospitals closing down or...?

I really don't understand the implications of this recession thing at all at all.