Oh.
This morning.
Via David McWilliams
Earlier: Everything Must Go
Thanks Spaghetti Hoop
Laura Miller writes:
It has been drawn to my attention that the Dalkey Book Festival has changed its status from non-profit making enterprise (which most book festivals are e.g. Hay festival) to a limited company. The festival is heavily sponsored, participants are not paid a penny and all who work
on it are volunteers. Who gets the profits and why hasn’t this been more broadly advertised? Surprised Broadsheet not onto it
Anyone?
Irish Permanent’s loans-to-deposits ratio remains 227pc, down from 247pc last year. What this means is that the delinquent management of this bank borrowed so much in the boom to lend out that now — even after three years of contracting — for every €1 deposit the bank holds, it has lent out more than €2.27. For the bank to be viable, it has to get this ratio back to €1 of deposits equal to €1 of lending.
This implies that it has to aggressively cut lending or aggressively increase deposits or a combination of both.
…If the bank gets into a deposit war at a time when there is no demand for loans because people and companies don’t want to borrow, it is toast.
Why? Because its cost of capital is likely to be greater than its return from that capital. That is how you go bust.