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Honohan Says Ireland's Fiscal Slide Worse Than `Almost Any Other' Nation


Dreaded_Estate

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Honohan Says Ireland's Fiscal Slide Worse Than `Almost Any Other' Nation - Bloomberg

Irish Central Bank Governor Patrick Honohan said Ireland’s fiscal deterioration has been “worse than almost any other country” and tougher action is required to reduce the deficit.

The decline partly reflects the fact that the “home-grown property bubble had risen further and so has fallen further than most,” Honohan, who is also a member of the European Central Bank governing council, said in a speech in Dublin today. The government has been “struggling” with the deficit for the past two and a half years and it will now be subject to “intensified corrective action,” he said.

Ireland’s government yesterday announced plans to seek 15 billion euros ($21 billion) in spending cuts and tax increases to lower its budget deficit to within the European Union limit of 3 percent of gross domestic product in 2014. The shortfall will be about 12 percent of GDP this year, or 32 percent when bank-bailout costs are included.

Finance Minister Brian Lenihan said the plan will include “significant” measures in 2011 to restore investor confidence and lower borrowing costs.
Not sure what exactly is meant by “intensified corrective action” but given that the 10 year is approaching 7% again. I think €6bn is the minimum needed to get back into the markets in the new year.
 

slippy wicket

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gijoe

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How come it is only when our politicians and regulators are speaking to a foreign audience, and usually in foreign locations, that you get anything like the truth. Yet when they are speaking to Irish people at home we only get platitudes and the truth only drip fed.
 

eoghanacht

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How come it is only when our politicians and regulators are speaking to a foreign audience, and usually in foreign locations, that you get anything like the truth. Yet when they are speaking to Irish people at home we only get platitudes and the truth only drip fed.
Well thats how they view us, as ignorant children incapable of understanding
 

MPB

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Honohan Says Ireland's Fiscal Slide Worse Than `Almost Any Other' Nation - Bloomberg



Not sure what exactly is meant by “intensified corrective action” but given that the 10 year is approaching 7% again. I think €6bn is the minimum needed to get back into the markets in the new year.
Jesus, even Honohan thinks austerity is the solution. God help us. We funnel 60 billion into dud Banks, make the innocent taxpayer foot the bill and are stupid enough to think the sovereign bond markets will reward us with low interest rates?

Bond markets do not reward stupidity, they punish it.

People do not bear beggaring their children well.

Austerity is a solution preferred by the haves but borne by the have nots.

The have nots are more in number. Historically, often something forgotten by the haves.

Why should cutting 6 billion in this budget work, when cutting 7 billion in the last 3 has not?

We are borrowing 60 billion to prop up Banks that will never operate as Banks again. They have not contributed one cent to this countries economy for 2 years, yet we still think that they are systemic.

If austerity is the solution why don,t we just cut the whole 15 billion?
 

Dreaded_Estate

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Jesus, even Honohan thinks austerity is the solution. God help us. We funnel 60 billion into dud Banks, make the innocent taxpayer foot the bill and are stupid enough to think the sovereign bond markets will reward us with low interest rates?

Bond markets do not reward stupidity, they punish it.

People do not bear beggaring their children well.

Austerity is a solution preferred by the haves but borne by the have nots.

The have nots are more in number. Historically, often something forgotten by the haves.

Why should cutting 6 billion in this budget work, when cutting 7 billion in the last 3 has not?

We are borrowing 60 billion to prop up Banks that will never operate as Banks again. They have not contributed one cent to this countries economy for 2 years, yet we still think that they are systemic.

If austerity is the solution why don,t we just cut the whole 15 billion?

How would you reduce the amount we have to borrow MPB?
 

SKELLY

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So will all FF and Green TD's be repeating this qoute like they did with there selective qoute from Honohan that they didnt cause the mess?!
 

MPB

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How would you reduce the amount we have to borrow MPB?
A lot of what should have been done is now probably too late to do.

But I would save BOI only. Let bondholders pick over the carcasses of the rest and save 50 billion in borrowing and 3 billion in interest straight away.

Our deficit could then be tackled from both sides, reduced expenditure and growth.

We need to create jobs not force austerity on an already over indebted populace.

People seem to forget that the Celtic Tiger was credit induced. That debt is still there and was based on earnings and jobs the Govt think the taxpayer can do without.

The taxpayer can do without the debt, not the wages and jobs. Everything is being approached from the wrong direction.

We want to forgive the bad decisions of bondmarkets and yet think that there is a moral hazard in forgiving the debt of struggling mortgage holders.

The Govt think that the bond holders in the Banks need to be repaid to ensure that the sovereign bond markets lend to us at low interest rates, yet our interest rate is at almost 7%.

If you were a sovereign bond investor would you place your trust in a country that would put your investment at risk, by bailing out the bad investments in Private institutions of others?

We need to rescue our own citizens. They are our economy. Always were and always will be. The Banks bondholders are not our problem. Never were but always will be.

We have a corrupt political party and an idiot finance minister to thank for that.

FF and the EU have managed to convince the population that austerity is some sort of purging of the Irish soul.

Watch and see what happens and do not say I did not warn you.
 

Davidoff

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The interesting thing about Honohan is that he's said, essentially, that the bank guarantee was a mistake. It's amazing how effectively that's been airbrushed from the public debate.

It's a pity Lenihan wasn't knocking on his door two years ago instead of chewing garlic with that ginger bloke.
 

spidermom

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This is the most interesting bit of Honohans satatement as far as I'm concerned...."The government has been “struggling” with the deficit for the past two and a half years and it will now be subject to “intensified corrective action,” he said....."


The ambulance chasing of this shower has been laid bare.
Interesting on the day the Roscommon abuse case is published too....Our current finance Minister was...in his last portfolio?????
Minister for Children, 2002–2007


For fairness..(GRR) here is the list of FFers who held the post
Frank Fahey 8 July 1997 1 February 2000 Fianna Fáil
Mary Hanafin 1 February 2000 6 June 2002 Fianna Fáil
Brian Lenihan 19 June 2002 14 June 2007 Fianna Fáil
Brendan Smith 20 June 2007 7 May 2008 Fianna Fáil
Barry Andrews 7 May 2008 Incumbent Fianna Fáil
 

king5494

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Mar 3, 2010
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532
A lot of what should have been done is now probably too late to do.

But I would save BOI only. Let bondholders pick over the carcasses of the rest and save 50 billion in borrowing and 3 billion in interest straight away.

Our deficit could then be tackled from both sides, reduced expenditure and growth.

We need to create jobs not force austerity on an already over indebted populace.

People seem to forget that the Celtic Tiger was credit induced. That debt is still there and was based on earnings and jobs the Govt think the taxpayer can do without.

The taxpayer can do without the debt, not the wages and jobs. Everything is being approached from the wrong direction.

We want to forgive the bad decisions of bondmarkets and yet think that there is a moral hazard in forgiving the debt of struggling mortgage holders.

The Govt think that the bond holders in the Banks need to be repaid to ensure that the sovereign bond markets lend to us at low interest rates, yet our interest rate is at almost 7%.

If you were a sovereign bond investor would you place your trust in a country that would put your investment at risk, by bailing out the bad investments in Private institutions of others?

We need to rescue our own citizens. They are our economy. Always were and always will be. The Banks bondholders are not our problem. Never were but always will be.

We have a corrupt political party and an idiot finance minister to thank for that.

FF and the EU have managed to convince the population that austerity is some sort of purging of the Irish soul.

Watch and see what happens and do not say I did not warn you.
+1
 

Davidoff

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Oct 4, 2010
Messages
1,485
I agree that it may well be too late. The state may have taken on so much debt from the bank bailout that no amount of 'austerity' can return us to a sustainable path.

Sometimes it seems as if the imbeciles in charge are just running out time, praying that the IMF won't arrive until after they're gone. As if it that would somehow exonerate them from blame.
 
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