Where did all the money go?

galwayredgirl · 07-07-2014 02:28PM #1

OK - We are all paying back the money that the banks lent developers to buy fields for millions which are now worthless along with the shoe boxes that were built on them.

Ireland inc owes €94 billion or something like that - but where did the money actually end up?

Are there a lot of farmers out there now with millions in their bank accounts?

arctictree · 07-07-2014 02:31PM

galwayredgirl wrote: »

OK - We are all paying back the money that the banks lent developers to buy fields for millions which are now worthless along with the shoe boxes that were built on them.

Ireland inc owes €94 billion or something like that - but where did the money actually end up?

Are there a lot of farmers out there now with millions in their bank accounts?

Yes, I know of a good few myself.

Wishiwasa Littlebitaller · 07-07-2014 02:32PM

Have you checked down the back of the sofa?

MagicIRL · 07-07-2014 02:34PM

It was given to little ****s for Communion and Confirmation money.

holystungun9 · 07-07-2014 02:35PM

You don't know?? So what did you fill YOUR pool with then???

I am pie · 07-07-2014 02:37PM

We lost it all at the dogs one weekend in 2008.

jimgoose · 07-07-2014 02:37PM

Forget it. Like last year's snow, it's gone! :pac:

Birneybau · 07-07-2014 03:05PM

It's in Bill's house.

SEPT 23 1989 · 07-07-2014 03:06PM

back to the Reichsbank

Geuze · 07-07-2014 03:07PM

galwayredgirl wrote: »

OK - We are all paying back the money that the banks lent developers to buy fields for millions which are now worthless along with the shoe boxes that were built on them.

Ireland inc owes €94 billion or something like that - but where did the money actually end up?

The Irish Govt owes 200 bn approx in public debt.

That's separate from private debt, which is also huge.

Lucifer MorningStar · 07-07-2014 03:08PM

It's just resting in the account

Ruu · 07-07-2014 03:08PM

Lucifer MorningStar wrote: »

It's just resting in the account

A good long rest, yeah.

Geuze · 07-07-2014 03:08PM

galwayredgirl wrote: »

OK - We are all paying back the money that the banks lent developers to buy fields for millions which are now worthless along with the shoe boxes that were built on them.

Are there a lot of farmers out there now with millions in their bank accounts?

The gross cost to recapitalise the banks was 64bn approx.

No senior bank bond was not repaid.

All bank liabilities were guaranteed by the State.

Snake · 07-07-2014 03:09PM

Okay so we put it in a deposit account with a maturity of 1.2% over 5 years, and it's gone.

shruikan2553 · 07-07-2014 03:10PM

Maybe there was no money and we all thought there was.

Geuze · 07-07-2014 03:14PM

Here is a table of the costs of the banking crisis:

http://lh6.ggpht.com/-ZzsEgWCd3Og/UQwBDsKfS0I/AAAAAAAAJ2A/QTSja435ESY/Bank%252520Recapitalisation%252520Payments_thumb%25255B8%25255D.png?imgmax=800

07-07-2014 03:14PM

Spent on jumbo breakfast rolls and diesel

Geuze · 07-07-2014 03:15PM

How do I get this PNG image

http://lh5.ggpht.com/-qJNTvp8aHRk/UQwAYzHFcXI/AAAAAAAAJ14/YQnmPlX847A/s1600-h/Bank%252520Recapitalisation%252520Payments%25255B10%25255D.png

into the post itself?

AnonoBoy · 07-07-2014 03:17PM

Birneybau wrote: »

It's in Bill's house.

What the hell is my money doing in your house Bill?

Awkward Badger · 07-07-2014 03:20PM

Geuze wrote: »

How do I get this PNG image

http://lh5.ggpht.com/-qJNTvp8aHRk/UQwAYzHFcXI/AAAAAAAAJ14/YQnmPlX847A/s1600-h/Bank%252520Recapitalisation%252520Payments%25255B10%25255D.png

into the post itself?

You can't embed images in After Hours.

galwayredgirl · 07-07-2014 03:22PM

Geuze wrote: »

Here is a table of the costs of the banking crisis:

http://lh6.ggpht.com/-ZzsEgWCd3Og/UQwBDsKfS0I/AAAAAAAAJ2A/QTSja435ESY/Bank%252520Recapitalisation%252520Payments_thumb%25255B8%25255D.png?imgmax=800

Yes but my understanding is as follows:

Developer borrows money from bank

Developer givers money to farmer for field

Developer borrows more money to build builds houses / flats etc.

Crash!

Only one with money = farmer

K-9 · 07-07-2014 03:24PM

galwayredgirl wrote: »

OK - We are all paying back the money that the banks lent developers to buy fields for millions which are now worthless along with the shoe boxes that were built on them.

Ireland inc owes €94 billion or something like that - but where did the money actually end up?

Are there a lot of farmers out there now with millions in their bank accounts?

Probably some farmers all right. Some developers got out before the crash but many got caught too, profits and property tied up in the "next" big thing.

Geuze · 07-07-2014 03:28PM

galwayredgirl wrote: »

Yes but my understanding is as follows:

Developer borrows money from bank

Developer givers money to farmer for field

Developer borrows more money to build builds houses / flats etc.

Crash!

Only one with money = farmer

Yes, true, and plenty of landowners did make millions from land sales.

Geuze · 07-07-2014 03:32PM

Example

Sean Dunne buys three hotels in Ballsbridge for 350-400m, with a lot of borrowings.

The sellers still have the proceeds of the sale - they are immensely wealthy.

Property dev plans collapse - banks are left with huge bad loans.

Frank Lee Midere · 07-07-2014 03:32PM

galwayredgirl wrote: »

Yes but my understanding is as follows:

Developer borrows money from bank

Developer givers money to farmer for field

Developer borrows more money to build builds houses / flats etc.

Crash!

Only one with money = farmer

Definitely some farmers made off like bandits. Developers kept reinvesting - betting the farm every time.

As to where that money went? The banks which guatanteed the loans were effectively bankrupt, the banks (or senior bond holders ) who lent to them should have taken the hit but didn't. The money was nationalised so it is going to pay back the bond holders over the next 30 years.

Frank Lee Midere · 07-07-2014 03:34PM

Geuze wrote: »

Example

Sean Dunne buys three hotels in Ballsbridge for 350-400m, with a lot of borrowings.

The sellers still have the proceeds of the sale - they are immensely wealthy.

Property dev plans collapse - banks are left with huge bad loans.

The sellers were jury's. Yes that's true. Some money went to people with assets and land. Some is stilled owed to bond holders.

K-9 · 07-07-2014 03:35PM

Geuze wrote: »

Example

Sean Dunne buys three hotels in Ballsbridge for 350-400m, with a lot of borrowings.

The sellers still have the proceeds of the sale - they are immensely wealthy.

Property dev plans collapse - banks are left with huge bad loans.

Indeed, IIRC the sellers then started buying up a lot of property at crash prices!

Another example was the guy who owned Choice/Quality hotels. Sold a good few of the hotels in 05/06 and made a fortune, but invested badly. The remaining hotels he owned ended up in NAMA I think.

ScumLord · 07-07-2014 03:35PM

I see what your getting at OP. There must be some bank or person at the top of the bank debt tree. If we can find that person and kill them it should have a knock on effect canceling out all debt, kind of like killing the original vampire.

Akrasia · 07-07-2014 03:37PM

Birneybau wrote: »

It's in Bill's house.

Hey, what the hell are you doing with my money at your house Fred?

Permabear · 07-07-2014 03:41PM

This post has been deleted.

Akrasia · 07-07-2014 03:45PM

Money was created by the banking sector to fuel the bubble
Money was destroyed in the economic crash when the 'value' of shares in banks and other investment vehicles collapsed. Hundreds of billions of euros were simply 'wiped off the balance sheet' of banks and hedge funds when investment portfolios collapsed.

Some very canny/lucky people in the middle sold high, kept the proceeds in cash and bough back their assets at fire sale prices.

Some other 'investors' lost all their money on bad investments but miraculously got repayed by idiots who threw money at them (the tax payers who bailed out unsecured bondholders)

Where did all the money go?

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