Monday, January 19, 2009

Nationalisation of Anglo Irish Bank

Well the inevitable finally happened last week, the "zoombie bank" of Ireland, Anglo Irish, finally got nationalised by the Irish government exposing the irish people to a massive risk. Investors in Anglo Irish have seen their share go from 18 euro two year ago to 22 cent. One notable loosers is Sean Quinn the CEO of the Quinn group. 

Minister Lenihan says that this was a necessary step, he better be right, if this goes wrong - it will go wrong of icelandic proportions. 

David McWilliams got it right again, I read in one of the papers, in a column he wrote over Christmas that the bank will be nationalised before Feb. Well done David, this is not the first time you got it right. Mr. McWilliams states that he knows whats going to happen because he has a basic understanding of economics, something sorely lacking in the government. He also notes that all the bad assets in the Irish banks should be taken over by anglo irish - sort of a toxic waste ground. Minister Lenihan disagrees. So who do we believe the solicitor who's party's policies have got us in this mess or the economist who keeps predicting it right?

No comments: