What if this doesnt work?

wylo

Ok lost of questions here, so were about to receive 80billion (or so) to prop up the banks and spend on running the country.
What if this doesnt work??
What if our tax intake keeps reducing and we cant reduce our deficit? What if the banks continue to fail, struggle to make any profit, get hit my mortgage defaults, and even lose more money from withdrawals and outgoing transfers to foreign banks?
Is it a case that it HAS to work, and it WILL work, or is this just another gamble on our country and banks that could easily fail?
But seriously, what if it actually doesnt work? What happens then? Do we default, leave the euro and have an Argentina style crisis?

And most importantly, do you think it will work? I know its only been 6 months but how is Greece performing now? It seems they are the only comparison we can make for now.

spagboll

It will artifically prop up the banks for a few years, most of the money will ultimately end up in banks outside of Ireland that have invested in our banks.

soden12

Amusingly if I as a pleb invests in a bank and the bank implodes then I'm ****ed. However if I manage to declare myself as a bondholder (aka another bankers friend) then I get the risk premium (also known as interest) but if it fails the government has to pay me. So I get a 100% secure loan along with a high rate of interest.

Bwankers are *****.

SkepticOne

I agree with spaggbol that it will prop up the banks for a few years.

We had been doing this ourselves since 2008 getting deeper and deeper into debt but recently the markets have indicated that they are unwilling to continue to lend to us. Therefore ECB and the EU have stepped in to allow us to get even further into debt so we can continue to prop up the banks for a few years more.

There was some hints given that the banks will be forced to restructure rather than be repeatedly recapitalised. Hopefully that will happen or else it will be the Irish state that will be restructuring on its debt.

charlemont

This is FF we are dealing with, of course it wont work..

Duiske

soden12 wrote: »

Amusingly if I as a pleb invests in a bank and the bank implodes then I'm ****ed. However if I manage to declare myself as a bondholder (aka another bankers friend) then I get the risk premium (also known as interest) but if it fails the government has to pay me. So I get a 100% secure loan along with a high rate of interest.

Bwankers are *****.

Very same as a guy going into a bookies and betting €100 on a horse.
The horse comes last, he hands in his docket, and the bookies gives him back his €100 plus €5 for his troubles. So he keeps doing it. If a horse wins, great, he's quid's in. If not, sure he'll make a few quid anyway.

Cavehill Red

Of course this isn't going to work.
It's going to crucify the country to the point where we become a theme park run from Brussels for the amusement of German tourists.
There's no way we can pay back these bank debts, and there's no moral or legal obligation to.
We should just renege on the guarantee and tell Roman Abramovich and his pals to eff off.

Slozer

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