Comments on: Talk to Joe

By: Sally

Sally — Tue, 07 Oct 2008 12:22:38 +0000

Despite the doom and gloom of recent months it was good to see Ireland leading the way in getting to grips the banking mess:good to see that the other so called stronger economies are now taking a lead from the governments brave decision and guaranteeing deposits:take a bow brian and co. well done.As for joe duffy, people have been hanged in many countries for much less: what a tool:brought on the scene by gay byrne because he would always make gay look good, he has turned out to be a complete waste of space:he is an embarrasment to not only his media peers but also those lowest common denominator folk who never see any good in anyone and their main ambition in life is to get some money through some insurance scam or other such maneouvre. I have long since stopped listening to this crap:public service broadcasting my arse

By: Pete

Pete — Mon, 06 Oct 2008 08:21:13 +0000

I’ve just realised that this Moral Hazard thing works both ways:

Obviously, the bailout has taught the bankers that they can take whatever risks they feel like, and never go bust. I fact, the bigger the hole they dig for themselves, the more likely they are to be bailed out. Crazy.

But those of us who didn’t participate in the credit-driven madness have also learned a lesson. We stayed sober, but we still had to tidy up the mess after the party. Ok, message received loud and clear – next time we’re going to party down! Financial sanity doesn’t pay!

By: graham

graham — Thu, 02 Oct 2008 23:43:29 +0000

The greedy, money grabbing capitalists are not so happy to play by the rules of capitalism, when it pertains to their own industry. I don’t believe for one second that one Irish bank going under would lead to a meltdown in the Irish financial system.
Despite the geographic realities, Ireland is not an Island in financial terms. The ‘master stroke’ has pissed off a lot of people, both here and across the EU, for it’s implications. Now with Ulster Bank, NIB and Bank of Scotland Ireland looking to be included in the protection, I wonder where will it (and our exposure) all end.
Joe Public is not innocent, certainly. How many column inches were filled with advice on buying property here and across Europe in an effort to make a profit by speculating on price rises etc and plenty of people tried their hands at doing just that. If they cannot pay their mortgage, who is going to guarantee their risky debts?

By: Pete

Pete — Thu, 02 Oct 2008 08:44:51 +0000

Moral Hazard anyone?

The senior bankers have got personally very rich out of playing fast and loose and thinking very short-term. Once this bail-out has faded a couple of years into the past, they (or their successors) will be very keen to start they same process again, and get even richer.
Instead of just increasing regulation to try and stop this, the way bankers renumeration works must change, so that those in charge are motivated to play safe, instead of being motivated to build highly unstable financial structures just to boost short-term profits and bonuses.

By: Andrew Lawlor

Andrew Lawlor — Wed, 01 Oct 2008 21:16:12 +0000

Leon,
I don’t think I actually said that the Democrats were responsible for scuppering the bail out bill. However, I don’t think that Nancy Pelosi’s speech was entirely unconnected to the defeat. Both sides in the US are playing a high stakes game in the run in to the presidential vote, one which the Democrats won hands down on Monday.

Eileen,
‘Hello? Speak for yourself there. If you’re a Sindo-reading, SUV-driving moron maybe.’
Rarely read the Sindo, can’t afford an SUV, only a part time moron.
I believe I may have made the point about the regulators being asleep at the wheel for ten years.
Oh, did I not put a big sarcasm flag on the comment about the bankers being salts of the earth? Tut tut.

By: Tomaltach

Tomaltach — Wed, 01 Oct 2008 19:36:48 +0000

When Lenihan first announced that bank deposits are safe I turned to my wife and said ‘oh oh’. That’s a bit like a leader saying, I’m definitely not going to resign.

Having said that. I think the honest truth is Lenihan had a tough call to make. Speculation was that there was going to be a run on Anglo-Irish (at least if not on others), and I can only assume their position looked pretty bad. They have 80% of their assets sunk into UK and Irish property. I assume that when the speculators scented blood that Anglo-Irish suddenly found its credit line frozen and so I can imagine the sequence of events. Anglo-Irish boss calls Central Bank gov John Hurley with the unpleasant news that Anglo-Irish will default within a few days if it doesn’t get its credit line open. And Hurley looks at the figures and they aren’t pretty. He calls Lenihan. So Lenihan is in a hard spot – what does he do. Let Anglo-Irish fail? Bail only it out? Or if there is evidence that this will immediately hit the ratings of BOI and AIB he has to engineer a system wide backup? There are no easy choices. For all our loathing of the banking practices and lack of regulation – who really wants to see our banking system grind to a halt. That would be an economic train crash surely.

But the extent of he back up plan is worrying. It is a huge risk and I hope that the numb skulls in the Dáil manage to draw up sensible conditions and a reasonable way for the tax payer to claw back any bailouts in the event of them being drawn down.

Thing is – this isn’t over. It may only be starting. Scary stuff.

By: Wildean

Wildean — Wed, 01 Oct 2008 15:19:21 +0000

Ho ho ho ho ho ho, haha ha ha ha……….. No it’s not Santa Claus. It’s the sound of Bertie, his builder pals and Paddy the Plasterer laughing into their pints. Good work lads.

By: Eileen

Eileen — Wed, 01 Oct 2008 14:49:14 +0000

“The bankers were the greatest, most decent salts of the earth when they were loaning us four times our annual income so we could buy our dream home and put a newly registered car in the drive.”

Hello? Speak for yourself there. If you’re a Sindo-reading, SUV-driving moron maybe. What I’d like to know is WHO are the regulators and WHAT have they been doing for the past ten years? This €400bn guarantee is insanity.

By: Sue

Sue — Wed, 01 Oct 2008 14:35:43 +0000

Me neither. And I wasn’t party to the orgy either. I couldn’t even buy a house because I refused to lie. (I’m self-employed, so meeting the banks’ requirements without playing fast and loose with the facts was next to impossible.) This bailout is outrageous in my opinion. GUBU even.

By: Electron

Electron — Wed, 01 Oct 2008 14:08:16 +0000

Sarah, this is the only move that has any hope of avoiding an Irish bank collapse. It’s not something to be celebrating as everyone seems to be doing – there’s a huge amount of bad debt out there and you mustn’t forget that ff led the public up the proverbial garden path and now has little option other than take this unusual step to save our asses from ruination. The public were encouraged to spend by the banks and the government proceeded to build a house of cards on the strength of this profligacy knowing full well that is was a sham. They now want us to carry the can, while their friends are let off the hook.
I wasn’t party to the orgy, but my export business was put under continuous pressure to remain competitive in a sea of excess – I for one, wont be cheering Mr. Lenihan.