Our banks are broke and the guarantee is simply an illusion

The illusionary and illogical nature of the Irish banking system is amply displayed in your discussion of the ELG scheme in your recent article ‘weaning banks off guarantee scheme’.

Those who might provide significant deposits to the Irish banks realise that the guarantee provided is simply worthless. It only provides the illusion of security to those who don’t actually think about it too much and professional and institutional investors think very carefully about where their money is now.

How could a government which itself is in the process of being rescued by the IMF et al, come up with €87 billion if it had to?