Trade DiaryI know this isn’t confined to Irish banking shares but the Irish banking system seems to be suffering from sever lack of confidence. The plunge today of Allied Irish Banks to 0.29 cents assumes the bank is worthless and values the bank at around 278 million. Bank of Ireland and Irish Life and Permanent stocks have also fallen to new lows. This is quite amazing and worrisome not only for the banks, government but for me as an Irish citizen. Ireland stands on the verge of yet another downgrade and our government better step up to the challenge soon because the ramifications of inaction are unthinkable.
Some more reading on the topic.
Irish regulator: bank short selling ban in place
Irish financial stocks suffer further falls
AIB chief executive’s message to staff
http://www.thepropertypin.com
http://www.askaboutmoney.com
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Hey Chris ,
Irish bank prices effectively have priced in full nationalisation.
So if you think that isn’t likely, have a punt….. problem is full nationalisation
is unthinkable for Ireland given the size of your GDP.
So I agree Irish people everywhere should be very worried indeed – as the Celtic tiger looks balanced on a knife-edge, and could go the way of Iceland (i.e., become a basket case).
It’s ironic that the thing I think that will save Ireland, is the same thing that might save Spain and Greece (who are even worse off at the moment) – Namely: Europe (Iceland was not EU, so their currency was toast). It’s ironic because it was only last year Irish citizens were making it clear that they weren’t all that keen on embracing Europe.
How times have changed.
Compare that situation to the UK – much larger GDP – but Sterling is being shorted to death and that is seriously bad news for us.
It looks like it’s bad news all around. The failure of Ireland to approve the Lisbon treaty and now the potential of us turning up with a begging bowl is the juxtaposition that Ireland has become. We want it all for nothing. I guess now is payback time. Cheers again for the comments.