What other country would allow bondholders to escape penalty, pump money into zombie banks to recapitalise them, and stand idly by while they refuse to lend to businesses?
(in relation to burning bondholders, and protectionism of 'important people and companies')What Country hasn't?
(in relation to burning bondholders, and protectionism of 'important people and companies')
America, where big banks were allowed to go to the wall, firesales of assets took place, and disgraced CEO are now languishing in prison. Seems like a different world alright.
. I recently told some bank staff to 'f*** off'... as they gave me three answers to a question, and there were only two people on the Customer Service desk. When I complained about the multiplicity of answers they thought I was a weirdo, .. for complaining about getting more answers then there were people to give answers ... so I said what I said and walked out of the bank.. muppets. Absolutely unprofessional in my view.
What profits? Irish banks have been making nothing but losses!And where, pray tell, is the risk that justifies the profits the Banks make??!!
I was thinking the exact same thing. If anything the US is a poster boy of bail outs on steroids.America where AIG, Freddie Mae and Freddie Mac were saved because of taxpayers money? America where Citigroup was bailed out? America that helped Bank of America with the losses when it took over Merrill Lynch? America that provided unlimited liquidity to it's banking sector. America that bailed out General Motors and Chrysler?
Is it not possible to believe both,? ie, are the banks correct in what they are saying that a lot of the businesses looking for money are not viable (answer, probably yes), and that a lot of actual viable business are not being lent to by the banks (again, probably yes)
America, where big banks were allowed to go to the wall, firesales of assets took place, and disgraced CEO are now languishing in prison. Seems like a different world alright.
All businesses, viable or otherwise, need access to capital.
Banks for years held the Irish ecomomy back.
Now the economy is on its needs and we need start up finance for risk takers - where are the banks now?
They won't ALL fail - some will prosper!
But with the banks dysfinctional in their lending practices at the moment, opportunities to succeed are being denied access to finance.
Hi ONQ,
it must be very frustrating as an SME to see that despite all the money we've put into our banks that credit is not flowing into the sector that produces the most wealth for this country. Having said that, I think the banks are in a bit of a bind...the last thing they want to have to do is defend is why they threw good money after bad if things go wrong. We are in an open, free market where any foreign bank can open up shop tomorrow to fill this market if they wish, but they are not doing so. We have to ask why this is the case. Are there too few viable businesses to lend to to make it worth their while? A number of foreign owned banks actually pulled out of Ireland and the only ones left are there to pull in nervous depositors.
Also, you'd have to ask yourself if you were in charge of the purse strings in one of the banks would you be willing to lend in this stage of a recession? Even though it might be the "right" thing to do it may not be the best thing to do financially.
IMO there are plenty businesses out there that need to fail...the types of businesses that could only ever survive in a celtic tiger boom. It's going to be back to basics for a lot of other businesses with a focus on less borrowings up front.
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