The biggest surprise: The Irish government guaranteed all deposits and debts of the country’s major banks, one day after the Irish stock market plummeted 13%, nearly twice the decline of the Dow Jones industrials.
“We have to create confidence,” Finance Minister Brian Lenihan said on RTE Radio, according to Bloomberg News. “We can’t bail out a particular bank. That wouldn’t be right. What we have decided to do is give a general guarantee that the banks can lend in security and safety.”
mcauleysworldweblog: Irish Banks have received a rush of American cash in recent weeks as Americans have transferred money to Irish Banks. There are commentators who suggest the move by the Irish Government is aimed at keeping the American funds in Irish Banks. The Irish economy has been booming for 10 years. The Irish Government has a pro-growth, low tax, business environment. Business taxes in Ireland are approximately 11%.
Read About The Myth Of The FDIC Insurance Fund Here: By Bill Isaac, Former FDIC Chairman - http://mcauleysworld.wordpress.com/2008/10/02/fdic-insurance-an-accounting-myth-not-a-fund-bill-isaac-former-fdic-ch/
Filed under: Bailout, Bailout Negotiations, Bailout Opposition, Banking Crisis, Financial Crisis, Irish Bank Deposit Insurance | Tagged: Bailout, Bailout Bailout Opposition, Bailout Negotiations, Irish Bank Deposit Insurance, US FDIC Insurance | Leave a Comment »