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Bank Of Ireland Share Chat (BKIR)



Share Price: 0.306Bid: 0.304Ask: 0.306Change: 0.00 (0.00%)No Movement on Bank Ireland
Spread: 0.002Spread as %: 0.66%Open: 0.307High: 0.312Low: 0.302Yesterday’s Close: 0.306


Share Discussion for Bank Ireland (BKIR)


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aclaw
Posts: 380
Off Topic
Opinion:No Opinion
Price:0.31
View Thread (2)
Interest rates
Sat 17:41
..the problem I see with noonan announcing a 4.7% GDP growth rate which is fine, is inflation with low rates combined, speculation enters the market, market overheats, then they have to apply the brakes , raise interest rates.. Low rates are fine when you have a growth rate of 1%, but when growth exceeds the interest rate you have inflation..
 
allmoyne
Posts: 300
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Opinion:No Opinion
Price:0.31
View Thread (3)
bob
Sat 17:19
we will see ,or you will see , I see clearly...so lower rates drive up economies and normal/higher rates kill it....god help us
irish_bob
Posts: 316
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Price:0.31
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RE: johnbob
Sat 17:08
anytime the FED has indicated that interest rate rises might be a reality sooner rather than later , stocks have sold off

when bernanke was there , lowering rates was seen as a way of juicing the equity market some more , I,E , corporations could borrow for much less as could large investment banks who bought stock in these corporations

im definatley missing something , maybe im too dumb
allmoyne
Posts: 300
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Opinion:No Opinion
Price:0.31
john
Sat 17:03
this is what I am getting at , you are codding yourself if you believe the banks or going to keep these policy going to save your business/ or home, they are doing it so they can tighten the grip that it lacked in 07.

next stage is higher rates/bigger sqeeze , its business !
allmoyne
Posts: 300
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Opinion:Strong Buy
Price:0.31
View Thread (2)
johnbob
Sat 16:51
bob first , equities will move upwards fast once rates rise the trick is to get in before it happen or before it is hinted at.

john, by lowering mortgages payments to sustain your business is giving an extra bucket to a holed boat.You should be fixing the hole now because when rates go up , you will be back to one bucket!
johnmcclean
Posts: 479
Observation
Opinion:No Opinion
Price:0.31
View Thread (23)
RE: announcing tax break end ,again
Sat 14:43
"Your mortgage is somebodies savings/investment, your company loans are somebodies savings/investment. Encouraging savings gives the bank the power to direct capitol rather than people squandering it on consumerism.If consumerism was such a great way to capitalise a country we would need the bank!"

I have a business. The money I make from that funds my mortgage and my business loans. Anything left over is used to live, to enjoy, to save/invest. Depending on what income others have they will do similar. When money is tight saving and enjoy are the first casualties. The products my business sells fits into the enjoy category. If consumers have to put extra into their mortgage my business suffers. The knock on effect is the business I buy descressionary items from suffers. To keep turnover up I reduce prices. Others business follow. Consumers, already streached, delay purchasing in the hope of getting products cheaper later. I cut costs and let staff go. Others do the same. Its a vicious circle of deflation. So why would I borrow knowing I can't pay it back. Banks full of money are usless to me or my customers.

So, to encourage spending and break the deflation cycle thats destroying my business the Central Bank run by Allmoyne puts interest rates up a % or to help me even more 2%. Thanks a lot Sir.
irish_bob
Posts: 316
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Opinion:No Opinion
Price:0.31
View Thread (23)
RE: announcing tax break end ,again
Sat 13:52
interesting theory allmoyne

you obviously view ECB and FED policy as a sham and a recipe for trouble in the long run

just one thing however , if the current policy of low rates encourages " dumb money " to invest , are those people who since the onset of the credit crisis ( both here and in the usa ) have taken the decision to invest in equities as a result of believing there was no point in remaining in cash , are those folks dumb ?
allmoyne
Posts: 300
Off Topic
Opinion:Strong Buy
Price:0.31
View Thread (23)
RE: announcing tax break end ,again
Sat 11:31
heres the lie.

Low rates drives growth.(removes all smart money from the system, gives borrowed money an advantage over cash but holding cash protects it)

Heres the truth.

Higher rates drives growth.(It attracts smart money, gives cash an advantage over borrowed money but only if invested)

Jack Nickelson , quote coming next!
allmoyne
Posts: 300
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Opinion:No Opinion
Price:0.31
View Thread (23)
RE: announcing tax break end ,again
Sat 11:19
The only saving that doesn't help growth is saving under the mattress which only happens in a low rate environment.

Your mortgage is somebodies savings/investment, your company loans are somebodies savings/investment. Encouraging savings gives the bank the power to direct capitol rather than people squandering it on consumerism.
If consumerism was such a great way to capitalise a country we would need the bank!

People earn their money on a cost plus basis. Low rates takes the plus, and starves the system.

Banking isn`t working until it gets the cost plus balance right.Banking has the brakes full on at the moment to allow new restraints (taxes) in (without major complaint) before they raise rates and ,start to move again.

This is what makes bank of Ireland such a goldmine, it is about to leave the station, when the brakes get released (rates up).
johnmcclean
Posts: 479
Observation
Opinion:No Opinion
Price:0.31
View Thread (23)
RE: announcing tax break end ,again
Sat 10:57
"If you give cash into any part of the system they will hoard until rates rise(unless they are Daft)."

If people don't spend money where do they earn the money they are savings from? Money needs to circulate for employees to stay employed and earn.

If people are hoarding in anticipation of rates rising what will they do when that happens? Save? So how does that produce growth in an economy?



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