Readers on www.irishtimes.com were invited to respond to the following question yesterday: Do you agree with the Government's decision to guarantee deposits in Irish banks?Below is an edited selection of replies:
"The Government . . . has restored trust and confidence in the world banking system. For a small nation to put itself on the line to back Irish banks has sent a strong message to world markets. Watch this space - other countries will follow suit. We could be seeing the end of the credit crunch shortly."
Bill Blackwell
"I believe that it has the benefit of being a blank cheque that may never be drawn. With the resources of the Central Bank and the Financial Regulator behind it, the Government knows much more about the true state of the Irish banks than any independent commentator."
Michael O'Donnell
"What the Government is doing is indeed questionable but the consequences of not doing so may cause a credit crisis here that would severely weaken our ability to get credit. However, if we are to follow this logic . . . then this must also be passed on to the mortgage holders who lose their jobs and cannot afford to repay their loans."
J Kelly
"A reserved 'Yes'. However, the terms need to be explained in detail and such a move should link all executives bonus to performance . . . In recent times profit has been the main driver and hence an all too eager culture to take more risk and offload it elsewhere."
Tim
"I suppose there are four immediate questions (1) Is the absolute maximum downside known? (2) If not, has the Government capped its exposure? (3) Can Ireland actually pay up if asked? (4) If called to the maximum . . . would our economy end up devastated and in eternal debt?"
Brendan