Irish Life &Permanent : next in line?

“Ireland is inching closer and closer to the ‘Bad Bank’ solution that should have been enacted some months ago. At the very least, to repair the repairable – household loans and mortgages – thus providing more room for addressing the developers loans.

The difference today is that we are out of cash to get such a bank going, thanks to a rushed re-capitalization and the Government’s unwillingness to extract real value out of public sector waste. And private money is already smelling the roses (here): €10bn outflows out of Ireland in one week – some 5.6% of our GDP or 3.2% of all main banks deposits gone in smoke. What is the downside to the Exchequer on this? Should the outflow continue unabated, within a week or two we will be facing the need for a new round of banks recapitalization, this time around – ca €10bn… and the money will come from?..”    Link to full article