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RealEarplug

Listed below are comments made by RealEarplug between Saturday, 4th October 2008 and Sunday, 5th October 2008.

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Full deposit protection is nigh 9:15pm on 05 Oct 2008 Not sure that the Heads of State and EU are at odds with each other. They are merely behind the curve. They left their meeting in complacent agreement and returned to reality.

Some nice food and some fine wine over the weekend have persuaded them that all is well and the storm is contained (how overused has this word been). But they were in the lull that is the eye of the storm, come Monday its going to be very windy again.

I was very hopeful for this weekend that we would see a concrete solution to Iceland and some clear statements that the Governments were implementing the across the board guarantees that are now (with regret) necessary.

If they do not get ahead of the game the European taxpayers are going to be owning a lot of banks and the markets will move from looking for which banks will fail to which sovereign names are most risky, afterall there is suddenly going to be a lot of new Government debt to choose from amongst investors. Worrying.
Markets call time on Iceland 1:35pm on 04 Oct 2008 #2 - the alternative ? allow every depositor in an Icelandic bank to be wiped out and all the loans that can be made on demand called ?

Damned if they do damned if they dont - just like Ireland, Iceland have no choice but tp stand behind the banks/economy.

The problem is either way we are facing a potential sovereign default in Europe - who would be next etc.

An international bailout is a certainty. These are frightening times.

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