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Government guarantee.. confused

  • 28-09-2010 01:04AM
    #1
    Fentdog84
    Registered Users, Registered Users 2 Posts: 936 ✭✭✭


    I cannot get my head around it, I mean is it actually worth anything? If the **** hits the fan how can the govt actually guarantee to reimburse deposit & bond holders etc when they will have no money? Is it just smoke & mirrors to prevent widepread panic or is it just to delay the inevitable..bankruptcy..
    Ok heres a scenario which I hope wont happen but I'm fearful..
    Govt stops guarantee- depositors panic taking out their money- International lenders lose confidence & stop lending... People(civil servants, welfare etc) go to the ATM on payday but their cards are rejected because the money just isnt there.. The system has failed..widespread mayhem..


Comments

  • #2
    mgmt
    Closed Accounts Posts: 1,361 ✭✭✭mgmt


    Its funny that Anglo funding its retarded lending policy by using the interbank system and not using deposits. Most of its bondholders are outside this country so there is foreign pressure for the Irish government to keep propping up this failed bank.


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