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Irish Bank Flight Quickens Despite Eu Rescue

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8299418/Irish-bank-flight-quickens-despite-EU-rescue.html

Deposit flight from Irish banks accelerated sharply at the end of last year on fears of political turmoil, suggesting that the EU-IMF rescue package for Ireland failed to restore confidence.

Irish central bank data showed losses of €40bn (£34bn) in deposits from the key banks in December, compared with €27bn a month earlier. Over the past year Irish lenders have haemorrhaged €110bn, equal to 60pc of gross national product. "Would I want to leave money in an institution where I don't know who is making the rules?" said Gary Jenkins from Evolution Securities.

On Wednesday, Standard & Poor's cut Ireland's sovereign rating one notch to A-, citing a "weaker economic outlook, reduced prospects for bank earnings and funding difficulties of domestic banks". It also downgraded Bank of Ireland, Allied Irish, Anglo Irish and Irish Life, questioning "both the ability and willingness of the Irish government" to keep propping up lenders. The quartet remain "highly reliant on central bank funding" and have been unable to raise market funds despite state guarantees.

Investors are watching warily as Ireland prepares for an election on February 25. Leading opposition party Fine Gael said it will unpick parts of the EU-IMF bail-out for Ireland, threatening to "impose losses on bondholders who lent to collapsed domestic banks".

No wonder the Irish central bank is printing like mad, it would appear the central bank is printing it, giving it to the banks and it's being withdrawn. Fractional reserve banking at it's finest!

Looks like the entire Irish banking system is on the brink of total collapse.

Thank fook for the bailout to contain the problem.

Tick tock.

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I'm surprised there's any money left in it. The people who are withdrawing their money now don't know how lucky they are to get all this extra time.

As I said if the central bank is topping up the system everyone will get their money.

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I wouldn't want any money with an ireland central bank reference on it either.

Are Germans hoarding their "X" designated ntes yet so they don't flooded with everybody else's printed euros?

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Been a couple of articles posted on K Denningers website on Ireland, saying they should go the way of Iceland.

It seems, as always, the politicians (yes you Brown) TELL us without THEM we're screwed.

As usual, they ARE the problem

Saw this today.

http://www.bloomberg.com/news/2011-02-02/iceland-cuts-main-rate-to-4-25-as-inflation-slows-update1-.html

Inflation in Iceland is now falling, and the lowest since 2003.

Of course, so long as the EUSSR dictates Irish policy, they will not be allowed to choose. Anyway, as i understand, they have a Liebour/tory situation there too. One party with two names.

Sick EU bastards.

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What are they withdrawing it in - Irish denominated Euros?

:blink:

Transferring it to other european banks / central banks.

It seems the eurozone opted for a black solution to payments integration by merely placing an intra-central bank payment system (TARGET) over the existing national systems. Interesting enough I imagine they could flick the switch and float a currency in an instance.

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Transferring it to other european banks / central banks.

It seems the eurozone opted for a black solution to payments integration by merely placing an intra-central bank payment system (TARGET) over the existing national systems. Interesting enough I imagine they could flick the switch and float a currency in an instance.

Maybe they'll need to if the public in their country start refusing foreign demnominated notes and coins on a wide scale - it will cause chaos in the shops and the banks will only be getting back foreign denominated notes. Wanted euro currencis would be horaded elsewhere and the central bank of the wanted currency would find that they would have to print notes and issue coins to keep the supply churning on the ground.

Edited by OnlyMe

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I pulled my cash out of the banking system a couple of months back. Got it in a safe deposit box with a reputable security company. The interest rate is so frigging low there is nothing to be gained by leaving it in the banking system and everything, potentially, to lose if major bank runs resume. I think things are way too fragile to safely assume such bank runs could not happen across the entire eurozone.

It's not contained

Edited by tallguy

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Irish central bank data showed losses of €40bn (£34bn) in deposits from the key banks in December, compared with €27bn a month earlier. Over the past year Irish lenders have haemorrhaged €110bn, equal to 60pc of gross national product. "Would I want to leave money in an institution where I don't know who is making the rules?" said Gary Jenkins from Evolution Securities.
€40bn is an obscene amount of money. more than 1/3 of the years withdrawals. A disaster.
I wouldn't want any money with an ireland central bank reference on it either.

Are Germans hoarding their "X" designated ntes yet so they don't flooded with everybody else's printed euros?

You're an idiot. They hsven't actually printed €40bn in notes. It's all computer zeros, indistinguisable from german zeros.
What are they withdrawing it in - Irish denominated Euros?
Euros are euros are euros. Edited by RufflesTheGuineaPig

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You have all forgotten what happened in the USA two years ago. When there was a run on the banks the whole system was shut down and Paulson went to Bush and begged for 800bln to be put into the TARP and TALF. The banks were flooded with 'money' the word money of course is a misnomer.

The paddys really are in a pickle and anyone who thinks it would be better for Ireland (or the UK or Portugal etc.) to default are dreaming. It's one thing to speculate on HPC and another to be the one accepting the losses that come from collapse of Paddy Bank. As for the Icelanders the law suits have yet to fall on the heads of icelanders who cheated the rest of europe.

€40bn is an obscene amount of money. more than 1/3 of the years withdrawals. A disaster.

You're an idiot. They hsven't actually printed €40bn in notes. It's all computer zeros, indistinguisable from german zeros.

Euros are euros are euros.

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Transferring it to other european banks / central banks.

It seems the eurozone opted for a black solution to payments integration by merely placing an intra-central bank payment system (TARGET) over the existing national systems. Interesting enough I imagine they could flick the switch and float a currency in an instance.

If you are correct in that assumption the debt buy back of Greece etc.... makes sense and would imply there is an exit strategy in place for the PIIGS to leave the Euro and get their own currencies back.

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You have all forgotten what happened in the USA two years ago. When there was a run on the banks the whole system was shut down and Paulson went to Bush and begged for 800bln to be put into the TARP and TALF. The banks were flooded with 'money' the word money of course is a misnomer.

The paddys really are in a pickle and anyone who thinks it would be better for Ireland (or the UK or Portugal etc.) to default are dreaming. It's one thing to speculate on HPC and another to be the one accepting the losses that come from collapse of Paddy Bank. As for the Icelanders the law suits have yet to fall on the heads of icelanders who cheated the rest of europe.

lots of history in this post, but no reasoning.

is the poster saying printing is the way, or is he saying default is the way?

International law suits....thatll hurt defaulters...yeah right....law suits seek money....and defaulters tend not to have any.

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As for the Icelanders the law suits have yet to fall on the heads of icelanders who cheated the rest of europe.

Which lawsuits? I don't think any individual citizen of Iceland is named as defendant, so who cares?

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If I'd had any money in Irish banks, I'd have moved it elsewhere long ago. Why bother keeping it in an Irish bank?

If I had all the money I've spent on drink, I'd spend it on drink!

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I took all my money out of my post office bank account 4 years ago, because the money was in the bank of Ireland. If your money is in a Post office account get your money out NOW!

Edited by Scott Sando

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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