Ah, what must it be like to live in a country like that?
Letting bad businesses fail is what is meant to occur.
Crony capitalism where we let fraudulant bankers privatise the profits and socialise the losses is not how real capitalism works.
Let the shareholders, bondholders and crony bankers take the hit instead of the public.
will be good for their long term economic health.
Letting bad businesses fail is what is meant to occur.
Crony capitalism where we let fraudulant bankers privatise the profits and socialise the losses is not how real capitalism works.
Let the shareholders, bondholders and crony bankers take the hit instead of the public.
Split the casino investment banking (which adds little to economic output) from retail banking. When the investment bank goes under, bye bye bankers we dont care...
The rest of the west should follow denmark's lead.
Yes that all makes sense, but in the context of a single country, are they not at risk of run on their banks because of the irresponsible behaviour of other countries in guaranteeing their banks liabilities in full?
Will be good for their long term economic health.
Letting bad businesses fail is what is meant to occur.
Crony capitalism where we let fraudulant bankers privatise the profits and socialise the losses is not how real capitalism works.
Let the shareholders, bondholders and crony bankers take the hit instead of the public.
Split the casino investment banking (which adds little to economic output) from retail banking. When the investment bank goes under, bye bye bankers we dont care...
The rest of the West should follow Denmark's lead.
It begs the question as to why the Danish banking system has not gone into meltdown - why is there no run on the banks?
Will be good for their long term economic health.
Letting bad businesses fail is what is meant to occur.
Crony capitalism where we let fraudulant bankers privatise the profits and socialise the losses is not how real capitalism works.
Let the shareholders, bondholders and crony bankers take the hit instead of the public.
Split the casino investment banking (which adds little to economic output) from retail banking. When the investment bank goes under, bye bye bankers we dont care...
The rest of the West should follow Denmark's lead.
Question now is will anyone with large sums invested in Danish banks look to move their funds elsewhere, with the corresponding erosion of their banks capital base and thus affecting the banks ability to lend.? Furthermore, will this affect the ability of the Danish Govt and Danish banks to borrow in the future? Will it become more expensive with a corresponding cost to the Danish taxpayer
Because maybe they are smart and doing the right thing and we in Ireland were stupid and did the wrong thing..
It seems clear from the mess in Ireland that the solution Brian Lenihan chose was incorrect.
All we've done is teach bankers that they can do whatever gambles they want and nothing will ever be done to them and the tax payer will pay off their debts.
Dousing the fires of hyperbole and wishful thinking with the cold waters of logicFjordbank had €1.8 billion of assets. It had no outstanding senior bonds that were not guaranteed by the Government so no senior bondholder will lose money. (Even then they only had outstanding debt of about €300m). There are a couple of subordinated bonds that will lose money like all the sub holders in Irish banks. Depositors with deposits over €100k will lose about 26%. So the people that will mainly lose are depositors.
Let's see what Denmark would do if one of their larger banks got in trouble. I am willing to bet you would see a different reaction. The last failure led to rating downgrades and rising costs of funding for the larger banks and that was for a small mortgage bank. Allow Danske to get in trouble and see what they do. There are already calls to extend the Government Guarantee for bonds beyond 2013. These are only going to get louder. This is like us letting a large credit union fail. It is not comparable in anyway to allowing Anglo, BOI or AIB fail back in 2008. (Going after senior debt in Anglo and Irish Nationwide now is a different story)
Ah, what must it be like to live in a country like that?
because it is the smaller, badly run, mono-product banks that are going to the wall. i.e. the equivalent of our Anglo Irish, which should never have been get as big as it did.why is there no run on the banks?
Really!!! Be careful what you wish for because you just might get it: Highest taxes in the world - 44% of population pays taxes at the rate of 63%, Standard VAT rate 25%, Highest mortgage debt in the world!, almost 90% of GDP, 30% of the workforce are in the public sector...... need I go on
Most Danes I know have very little savings as a result of the above, so a run on Danish bank is almost a joke....
Jim.
Crap if you have any savings over €100K in the bank, I'd say
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