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Stephen Collins defends the bank guarantee


borntorum

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In his Irish Times article today, Collims contrasts the current situation in Cyprus with our own banking crisis in 2008 and what might have happened here:

[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]The Irish politicians and pundits who denounced the bailout at every step and called on the Government to defy theEurope an Central Bank are now seeing what can happen to a small country whose politicians engage in populist posturing instead of facing up to responsibilities.
[/FONT]
[...]

After days of scaremongering by some high-profile broadcasters there were fears that panic was about to break out. One of the things the Government considered on the night of the guarantee was the kind of security response that might be required if disorderly crowds began to gather at banks and ATM machines trying to withdraw their money the following morning.
Thankfully that didn’t happen but it was probably a close-run thing. The independent banking inquiry that reported in March 2011 pointed out that all of the possible policy alternatives facing the Government in September 2008 were fraught with risk and the time for decision-making was very short. “Increasingly the main issue at hand was seen as ensuring market financing for the banks at the beginning of the next day; making sure that Ireland was open for business in the morning . . . It represented on balance the ‘least bad’ option to address the immediate problem.”
I'm not always a fan of Collins, and as per usual his article contains a blanket defence of the EU, but I think he has a point here. I've always been dubious about the point of view that all our problems lead back to that night in September 2008. The rot set in earlier, with wildly pro-cyclical policies of tax cutting, spending increases and relentless priming of the building boom. Whatever decision Lenihan and Cowen could have made that night would have had very unpleasant repercussions, and it may well be that they chose the least worst option. We will never know for sure. But it was notable to hear Eamonn Gilmore on the Six One News last night, who had been so noisily critical of the previous governmemt's policies in opposition, contrasting them favourably with the approach taken by the Cypriot authorities.

Cypriot drama puts Ireland
 


hammer

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Did he mention bank regulation prior to the guarantee and the stupid ***** that were in a DELUDED FF Government ?
 

culmore

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the Guarantee might have been ok but anglo should have been let go that night and save the others
 

Burnout

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I have a life.
Fine Fail serving us the 'bailout dish' was just their piece de resistance after gorging on incompetence for years. But who cares, Mehole is top of the flops again.
 

ibis

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I'd agree that the bank guarantee was possibly the best of a set of bad alternatives, but the set of bad alternatives was determined by the behaviour of governments over the previous decade or so, so defending it misses a point. The situation in Cyprus is not dissimilar, in that their unpleasant set of alternatives is shaped by their own bank regulation beforehand. It's faint praise to be able to act not too badly in a crisis of one's own making, although it's probably better than what's been displayed by the Cypriots so far.
 

borntorum

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the Guarantee might have been ok but anglo should have been let go that night and save the others
I think we all wish that Anglo would have been left go to the wall.

The question was and is: would it have brought the rest of the financial sector down with it?
 

commonman

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A lot of FF supporters are starting to come out of the woods this last month or so Joe Duffy is another Collins always had a soft spot for FF the most smell power coming back to them.
 

GDPR

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I think we all wish that Anglo would have been left go to the wall.

The question was and is: would it have brought the rest of the financial sector down with it?
Honohan thinks it would, but compared to posters here, what would he know?
 

FakeViking

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Cowen, Lenihan and their cronies had MONTHS to prepare for the "Night of the Guarantee", after all Anglo's share price collapse was on Paddy's Day. So what did they do? Party on, take a nice long summer holiday and fu$k all else. So for Collins to argue that it was the best option is akin to arguing what were the names of the angels on the head of the pin.
 

RobertW

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It should be remembered that there was serious anger in Europe from the likes of Merkel, Brown, Sarkozy, LaGarde & Darling on the morning the guarantee was announced.
 

borntorum

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It should be remembered that there was serious anger in Europe from the likes of Merkel, Brown, Sarkozy, LaGarde & Darling on the morning the guarantee was announced.
Is that a criticism or a compliment? :rolleyes:
 

RobertW

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Honohan thinks it would, but compared to posters here, what would he know?
Yeah. . .Remember he was announcing the bailout as idiot FF cabinet ministers were on RTE News denying any bailout. :lol:
 

loner

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In his Irish Times article today, Collims contrasts the current situation in Cyprus with our own banking crisis in 2008 and what might have happened here:



I'm not always a fan of Collins, and as per usual his article contains a blanket defence of the EU, but I think he has a point here. I've always been dubious about the point of view that all our problems lead back to that night in September 2008. The rot set in earlier, with wildly pro-cyclical policies of tax cutting, spending increases and relentless priming of the building boom. Whatever decision Lenihan and Cowen could have made that night would have had very unpleasant repercussions, and it may well be that they chose the least worst option. We will never know for sure. But it was notable to hear Eamonn Gilmore on the Six One News last night, who had been so noisily critical of the previous governmemt's policies in opposition, contrasting them favourably with the approach taken by the Cypriot authorities.

Cypriot drama puts Ireland
We should never have arrived at the place we were in in 2008.Fianna Fail policies from 1997 onwards had one primary objective--to stay in power what ever it cost.They succeeded in doing so and in the process destroyed the country.The current Govt. may not be everything some people hoped for and their stalwart efforts to get us out of the mess have led to criticism mainly about promises unfulfilled and the slow pace of policies to reform our whole system of Govt. Some of these criticisms have some merit--everyday we see evidence of hugely wasteful expenditure of public monies.However,whatever the faults of the Govt. we should never forget that we are where we are because of the failure of FF to manage the economy with any degree of competence for so many years.
 

RobertW

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Is that a criticism or a compliment? :rolleyes:
Its neither. The bankers were telling Cowen/Lenihan that their problem was one of a lack of liquidity. They were in total denial about the fact that they were basically insolvent.
 

GDPR

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Yeah. . .Remember he was announcing the bailout as idiot FF cabinet ministers were on RTE News denying any bailout. :lol:
We know you're an idiot Robert, there's really no need to demonstrate it on every thread.

He said we needed one and should go into one and thereby cutting the legs from under the Government negotiating position, but he didn't "announce" anything.
 
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I never bought into the 'Lenihan destroyed the country' narrative - the economy was already destroyed by Ahern, Cowen, McCreevey, and Harney, he was simply there when it came to picking up the tab in September 2008. I didn't and don't agree with the guarantee, but people seem to forget the ultimatum he was confronted with that night (in a very disingenuous and orchestrated pincer movement by the banks). Had the predictions of the banks going down overnight been realised, savings would have been wiped out overnight and then he'd have been blamed for turning us into 1993 Russia (and whether that was true or not - what was he to do in that situation where he couldn't take the chance?).

The blame lies with the people who ran the country from the late 1990s to 2007, and with the people who continued voting for them long after it became apparent that it was all madness.
 

RobertW

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We know you're an idiot Robert, there's really no need to demonstrate it on every thread.

He said we needed one and should go into one and thereby cutting the legs from under the Government negotiating position, but he didn't "announce" anything.
You've been calling people names all day on here.

Seriously. . . grow up.

Here. . Click on this:

http://www.mentalhealthireland.ie/
 

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