Indo: David McWilliams: Irish Deposits could be hit Argentinan Style
- Thread starter Lightning
- Start date
Inflation is a monetary phenomenon and can only be created by central banks' monetary policy and government fiscal policy. If/when Ireland defaults, high or hyper inflation would be the result of Irish government and Irish central bank policies, nothing else.
I'm sorry for sounding a bit... insensitive... But I'd like to launch a little survey please: who's already moving away their remaining savings with Rabo/NR Ireland/Nationwide UK Ireland/NIB? I'm not moving them yet, but I'd like to know if I'm the only one...
I have a little bit of my money left in Rabo, mainly some emergency cash and money some for holidays and other larger discretionary spending; rest of cash and investments are abroad. The reason I chose Rabo is that I think that in a worst case scenario it would possibly take a little longer to freeze those accounts, hopefully giving me enough time to transfer the money into one of their mutual funds on offer.
I'm sorry for sounding a bit... insensitive... But I'd like to launch a little survey please: who's already moving away their remaining savings with Rabo/NR Ireland/Nationwide UK Ireland/NIB? I'm not moving them yet, but I'd like to know if I'm the only one...
I moved most from Irish banks to NUK/Rabo as I assumed foreign banks were safer than Irish banks but how safe are their deposits that are located here?
I have a Keytrade account as well but the rate is poor and Belgium doesn't look too safe either.
P
Payeman
Guest
Non Irish banks
The fact we're even contemplating deposit security just shows how far that the banks have fallen. Client manager in UB advised me that up to €200k is guaranteed per couple for joint account under Irish govt scheme. Didn't mention anything about it's parent company RBS which is effectively the UK Govt. I presume they'd step in to cover deposits there (same with Nationwide UK, Rabo etc) or am I just being naive?!
The fact we're even contemplating deposit security just shows how far that the banks have fallen. Client manager in UB advised me that up to €200k is guaranteed per couple for joint account under Irish govt scheme. Didn't mention anything about it's parent company RBS which is effectively the UK Govt. I presume they'd step in to cover deposits there (same with Nationwide UK, Rabo etc) or am I just being naive?!
The Irish govt guarantee is only as strong as the Irish govts finances, ie dependent on the kindness of strangers.
If your UB manager thought that mention of the Irish Govt guarantee would reassure. There is something else to be said, recent evidence has shown that Irish bank managers dont know anything about banking.
The Irish banks have already failed. They are being propped up with up to €160bn from ECB at the moment. If you think that can continue long term I would disagree. Maybe all will turn out for the best, I am not betting my life savings on it.
If (when?) the govt introduces legislation that adversely affects depositors, it will affect all banks operating in Ireland irrespective of their country of orgin.
I read that article alright, and it read to me like a covert warning. A warning I think I'll have to heed.
This is probably a stupid question, but I'll go for it anyway.
Some of you mention that it is a possibility that deposits could be devalued by a certain percentage. In this scenario, would a persons liabilities also be devalued by a similiar percentage.
For example, if I had a mortgage of 200K with BOI and I had savings of 50K with them. And in the process of a default, my deposit was devalued by 50% to leave me with 25K, would my mortgage be devalued similarly (i.e. by 50% to 100k) ??
Some of you mention that it is a possibility that deposits could be devalued by a certain percentage. In this scenario, would a persons liabilities also be devalued by a similiar percentage.
For example, if I had a mortgage of 200K with BOI and I had savings of 50K with them. And in the process of a default, my deposit was devalued by 50% to leave me with 25K, would my mortgage be devalued similarly (i.e. by 50% to 100k) ??
G
Guest105
Guest
It doesn't sound fair does it ? If I give someone a loan of my money (a deposit) and they also give me a loan, why should I have to repay them the money I borrowed off them if they won't repay me the money I loaned to them ? Suppose a deposit was far in excess of the mortgage taken out for example ? Under various consumer laws, normally you only deal with one company if you do your business through that one company e.g if my laptop doesnt work when I take it home I don't take it back to the HP factory, I take it back to Dixons, Peats etc.
dockingtrade
Registered User
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sorry for making this point again but if Euro based deposits take a hit it will destroy banks in all Eurozone countries. The Domino effect will be catostrphic in the piigs and throw in belgium at least. The German and French banks will be the biggest losers. The question about paying back your mortage in full if you take a hit on deposits... No one will pay a penny off their mortgage if deposits are hit not to mind paying a discounted mortgage back. The situation cant be compared to Argentina Iceland etc because we are part of a single currency market. Its like saying 20 years ago deposits in cork take a 10% hit because cork is broke and the rest of the country remains untouched.
The eu are forcing us to take pain and make a correction to the point where we cant take anymore and then a "solution" will kick in but we wwould have made the adjustment.
The eu are forcing us to take pain and make a correction to the point where we cant take anymore and then a "solution" will kick in but we wwould have made the adjustment.
I promise that the rational side of my brain agrees with you 100%...
But why at my university some of my teachers predicted that the Euro was the worse project the EU was going to undergo without first unifying taxation and political system?
P
pat'O
Guest
Isle of Man
Hi
Just wondering if anybody has considered the Isle of Man as banking options?
It is an international Bank haven with several British Bank options including National UK.
Hi
Just wondering if anybody has considered the Isle of Man as banking options?
It is an international Bank haven with several British Bank options including National UK.
I just listened to Colm McCarthy on Marian Finucane's programme and he argued that depositors' money is safe. He also disagreed with the McWilliams banking solution but, in the absence of McWilliams, he didn't elaborate too much.
The first segment of the programme deals with the Moriarity fall-out and the second deals with our financial crisis. It's probably available on podcast.
The first segment of the programme deals with the Moriarity fall-out and the second deals with our financial crisis. It's probably available on podcast.