# What happens State Deposit Guarantee Scheme if country goes bankrupt



## Happy Girl (27 Jan 2009)

A stupid question perhaps but then they say a question is never a stupid one if you don't know the answer.
Basically"in the highly unlikely event" that what happened in Iceland happened in Ireland i.e. complete financial/political collapse - would this have any implications for State deposit guarantee scheme or An Post Savings Certs guarantee.


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## Blarney (27 Jan 2009)

*Re: State Deposit Guarantee Scheme*

Just thinking the same thing Happy. I would think it would be a hugh problem so I am going to try find out before it becomes a problem


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## Happy Girl (28 Jan 2009)

*Re: State Deposit Guarantee Scheme*



Blarney said:


> Just thinking the same thing Happy. I would think it would be a hugh problem so I am going to try find out before it becomes a problem


 
But where do I go to in order to get the answer?


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## Guest128 (28 Jan 2009)

Well if the deposits are guaranteed by the state and the state is bankrupt......


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## george.shaw (28 Jan 2009)

Read up on Iceland, Argentina etc. - likely enforced 'bank and post office holidays' (closed banks), restrictions or limits (time and amount) to withdrawal of funds etc. 
Not pretty but this is unlikely as we are part of the Eurozone. If we were Iceland and had our own currency then this would be likely - our currency would collapse and the Irish middle class would be really decimated. 
Thank God for small mercies.


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## Tuttlinghorn (29 Jan 2009)

Whats the difference between Iceland and Ireland ?

One Letter
And 6 Months

Wheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Apart obviously from the insulating effect of Euroland, but that sort of ruins the punchline....


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## Spondulicks (31 Jan 2009)

All our senior bankers will be made available to the international creditors as indentured servants until the debt is paid off. 

The Chinese use the term re-education to characterise the de-construction and subsequent re-construction of an individual's set of values in these circumstances.


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## rmelly (31 Jan 2009)

Spondulicks said:


> All our senior bankers will be made available to the international creditors as indentured servants until the debt is paid off.
> 
> The Chinese use the term re-education to characterise the de-construction and subsequent re-construction of an individual's set of values in these circumstances.


 
I thought the chinese took them out back, shot them and billed the cost of the bullet to their family - if recent scandals in china are anything to go by.

http://news.bbc.co.uk/2/hi/asia-pacific/7843972.stm

[broken link removed]


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## rmelly (31 Jan 2009)

*Re: State Deposit Guarantee Scheme*



Happy Girl said:


> But where do I go to in order to get the answer?


 
Have you considered asking your local government TD? Preferably an FF one if possible. I think we would all like to know if the government has even thought this one through.


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## Happy Girl (1 Feb 2009)

*Re: State Deposit Guarantee Scheme*



rmelly said:


> Have you considered asking your local government TD? Preferably an FF one if possible. I think we would all like to know if the government has even thought this one through.


 
Wouldn't even consider asking local Govt TD. Would get the usual tripe of "not a chance in hell of that ever happening" etc. etc. etc. Just wondering if there was anything anywhere written in black in white as to what might happen in such an unlikely event.


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## Rigoletto (2 Feb 2009)

Tuttlinghorn said:


> Whats the difference between Iceland and Ireland ?
> 
> One Letter
> And 6 Months
> ...


 
the difference is four letters E U R O.


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## michaelm (3 Feb 2009)

Tuttlinghorn said:


> Whats the difference between Iceland and Ireland ?





Rigoletto said:


> the difference is four letters E U R O.


This seems to be the conventional wisdom but I'm not convinced.  With our own currency we would have had the financial tools to steer a course through a recession;  the problem is that we would have needed competent politicians, a big ask, rather than political tools.


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## lemur (3 Feb 2009)

If the banks went under - and there are insolvent- the ECB would need to bail us out. 

UK banks are 'safer' in the sense the BOE has the power to create money and liquefy the banks. 

So bottom line - its up to the ECB.


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## Tax666 (6 Feb 2009)

Most people appear concerned about the threat of an IMF takeover of the state and its fiscal budgets.  Does the ECB have the same power?  It could be equally unappealing for us to have the ECB camped on our doorstep. I presume one of the first items to be cut would be the favourable corporate tax rate!  No doubt they would carry out the same reorganisation of the public sector has occurred in Iceland.


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## RMCF (7 Feb 2009)

This is slightly worrying to read.

If you have €50k saved and you think its guaranteed, is it really? 

Would it be better to move money into a UK savings account?


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## Joody1 (7 Feb 2009)

it almost impossible to open a euro account in the UK.  No UK banks accommodate Eruo accounts

Joody


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## tadpole (7 Feb 2009)

One could open a Euro account with Northern Rock, which is a UK bank and effectively nationalised by British Government.

Another non-Irish bank operating in the Rupublic to consider is RaboDirect as they are AAA rated.


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## japester (8 Feb 2009)

Crikey, I was wondering the same thing recently ..... was thinking of transferring some money into my Betfair account, just for some "safety" ..... if such a thing even exists anymore!! I am really nervous about the state of the Irish financial institutions at the moment.


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## Joody1 (8 Feb 2009)

There is no safe place at present for people's money any more,  the banks keeps robbing themselves by big pay rises and bonuses. Banks keeps rewarding themselves regardless how bad the economy is suffering, and this is with governments blessing as well. 

Joody


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