Does this mean that the deposit guarantees may be useless? Brendan Keenan: Indo

Shakespeare said:
Hi all
What would your advice be re the following:
I've taken all our life savings and have them ready to lodge to Anglo for 1 year as it has the best rate and "guaranteed" if deposited by September 29th....
I cannot afford to lose any of this money.
Am I mad? We will be wiped out totally if any of this disappears.
Any advice appreciated please. The rates are so poor everywhere that I'm trying to get a rate that at least beats our mortgage rate.
Thanks
S
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I agree with CiaranT, in this uncertainty you need to spread your savings wisely.
 
Hi again
Thanks, yeah I know what you mean I'm just getting a little addled with options, the best buys show Anglo and INBS to be the best rate but similar issues with both.
BOI, AIB, EBS - isn't any guarantee likely to be in trouble if the possible IMF scenario happens.
Currently I only have accounts in UB and BOI but very poor rates.
would PTSB Interest first be safer than Anglo? Are they only "guaranteed" up to Eur100k? Is UB/FA covered to just Eur100k also?
sorry for all the questions, as I say, I'm getting a little addled and conscious of the 29th of September deadline if I want term deposit protection (for what it's worth) - better to be part of this scheme than not surely.

Any advice would help.
If it helps at all, there's Eur350k to deposit and I don't know how best to split it for max protection while trying to get some return also.
Thanks
 
If all garantees included in this document below maybe useless
is there any evidence on a run on the banks yet

http://www.*****************.com/category/elg

I am locked in to a term loan under the ELG scheme with 1 month before mature should I stop it now and spread it around foreign and more secure banks?
 
My God, it looks like there is a run against the time. But would the EU really allow Ireland to go bankrupt? :eek:

PS: still checking if there are any options at italian banks for non-italians
 
Can anyone definitively state that the fact that NR and Rabo are AAA rated make them safe or is it the case that they have Irish operations which are regulated here and consequently these deposits are as exposed as any other Irish bank in the event of IMF intervention/default
 
UFC said:
I do not believe the EU will let Ireland default. We have done everything they have asked us to do. If they let us fail it would send the wrong message to other countries in financial difficulties, i.e. it is not advantageous to sell out your citizens to save the bondholders.

But saying all that... I am in the process of opening a bank account in Belgium.
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How do you go about opening a bank account in Belgium? Do you not need proofs of address in Belgium to do that? Can you do it online/by phone/post or are you travelling to Belgium or using a broker to open an account for you?
 
onq said:
That's the danger of letting intelligent people without much common sense run a government.
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That's the danger of letting anyone interfere with the economy. No matter how intelligent or how much common sense, the end effect is the same. The economy, which is a collection of billions of human actions cannot be steered by some super human being at the top.
Hayek: "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."

onq said:
The investing of profits in property drove prices up astronimically, and together with the easy availability of low interest credit, is I believe what led to private home owners borrowing far more than they could sustain in an even moderate interest level - say 4-5% - with only one job.
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No, what drove up prices was the availability of too much cheap credit to investors, builders and private individuals. And that was the sole fault of governments and their central banks.

onq said:
There was a mean to be found somewhere, and it was mere hubris to ignore warnings like the value or property here exceeding the property values in places like New York, Paris and Hong Kong, major urban and financial centres.
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Yes, there is always a mean, which is the market clearing price based on supply and demand. Any form of government interference results in that balance being offset one way or another, always resulting in a mess.

onq said:
Now we face more "financial prudence" from the Masters of the World in the Bank for International Settlements in Basle, Switzerland.
They, arguably the architects of the current disaster, now appear to be planning to repeat their "mistake" and raise bank capital lending ratio requirements again.
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First of all the new capital ratios will not come into affect until 2019. What caused the crisis was too much easy credit, here and all over the world, resulting in asset prices increasing into bubbles. The reason there was so much credit available is because fractional reserve ratios were lowered along with interest rates, and the money supply was increased. This was the cause of the credit bubble. Any steps taken to lower the ability to create as much credit as had been is a very positive move. The only negative about the BIS announcement is that it doesn't go far enough.
Reserve requirements will be increased from 2% to 4.5%. This still means that banks will be a mere 3% away from effectively being insolvent!

UFC said:
I do not believe the EU will let Ireland default. We have done everything they have asked us to do. If they let us fail it would send the wrong message to other countries in financial difficulties, i.e. it is not advantageous to sell out your citizens to save the bondholders.
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Actually, letting countries default would send the right message. It would send the message that if you mess up your finances you have to pay the price. A default would be very positive for the €.
 
No, what drove up prices was the availability of too much cheap credit to investors, builders and private individuals. And that was the sole fault of governments and their central banks
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So artificially increasing the price of credit isn't interfering the economy then?
 
monagt said:
"how losses would be shared between depositors, creditors and lenders to the Government itself
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Query: why are not property owners included? Just because we can't get part of the property and have a barbecue with the few bricks we got as taxation? :confused:

So would just people saving for their future having to "forgive" the debtors? :confused:

Maybe I'm missing something. If so, can you pls help me? Otherwise I find this sentence extremely opinionated in order to protect only the writer's interests... :(
 
What happens in Ireland affect the UK as well, according to the news today it says that Ireland is a very importer of goods more than spain. Also, Ireland has a lots of UK organisation such as M&S and Tecsos and I am sure there are many others as well. So I think that Ireland will have to go to the EU for a bailout like Greese but not just yet. :(
 
What do we do?

We have our life savings in AIB and BOI.
The AIB funds are fixed in until January and BOI are on demand.

What is the safest route to protect this money?

I have heard of German government bonds.

I have read all of the other posters and I am wondering are we panicking? Will the IMF come in as a worst case scenario and our deposits would be safe?

I have heard we have money to fund the country for a few months yet.

I would love to hear the truth, the whole truth and nothing but the truth. Not just guesswork.
Does anybody know?
 
"Does anybody know? "

is that anybody , as in here on this site ?
or anybody , as in , running the goverment ?

"Not just guesswork"

how can you expect any more than that ?

Nobody on here would be in a position to do other than educated guess work and sometimes uneducated.
 
Commercial, I second what Penguin has just said. It's anyone's guess whats going to happen within the coming the months. If you read between the lines it does not look good.

It's an uneducated guess from me but I personally think that we will have to be bailed out.

As far as I've read the money we have to fund the country will run out in June 2011. Please correct me if I'm wrong.
 
I don't understand if it's the EU+IMF instructing the Government to pull as much as possible until a riot happens and then they'll kick in or if FF is too proud to ask for help... :confused:

Furthermore, the guesses are open... When will the IMF kick in? In my opinion already in 2011, sorry maybe I'm pessimistic but I see weird things happening around... :(
 
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