IMF expert warns Ireland to 'seek bailout now'

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Thanks to Robut http://www.politics.ie/economy/137541-has-run-ireland-begun-408.html#post3170310

Deserves a post of its own.

http://news.infoshop.org/article.php...01115071324920

IMF expert warns Ireland to 'seek bailout now'

"Simon Johnson, Professor of Entrepreneurship at Massachusetts Institute of Technology and a member of the Congressional Budget Office's Panel of Economic Advisers, has a stark message for the Irish Government.

"For the sake of the Irish people, it's time to go to the IMF. If you go in now and if you go in with your partners, you will get a good deal. You may not get such a good deal next week. It would have been a much better deal if they'd gone in February because Ireland wouldn't have had to go through all this discretionary tightening along the route.""
 


Doodah

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Then why did Johnson's boss Strauss Khan say somehting completely different at the weekend?
Expression of confidence: no request for help, says IMF chief - The Irish Times - Mon, Nov 15, 2010

“I have not been in contact with Ireland, he told reporters, adding, “I think they can manage well”.

Mr Strauss-Kahn said: “If at one point in time . . . the Irish want some support from the IMF, of course we will be ready” but added that “until that it’s business as usual”.

Mr Strauss-Kahn said he was “confident” that Ireland would solve its problems and described the current predicament, which is a banking issue, as “totally different” to that of Greece.

The Irish situation is mostly linked to the problem of the banks, especially one big bank, not only one, but mostly one big bank. It’s not the same thing as the Greece problem, which was at the same time a fiscal problem but also a competitiveness problem,” he said.

“And one of the difficulties for the Greek government . . . is that they also have to solve this competitiveness problem. Without solving this problem, they won’t find a way out.” – (AP, Reuters)


Please explain.
 

anewbeginning

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This government would rather drive the Irish economy off a cliff and borrow at 10% yields than seek outside help.

If they seek outside help, FF will always be known as the party that ended Irish soverignty, and they don't want to face the electorate with that stain.

The only people Cowen and Co. are fooling are themselves. Everyone else realises the game is up and some sort of external assistance is needed.
 

Mossy Heneberry

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Then why did Johnson's boss Strauss Khan say somehting completely different at the weekend?
Expression of confidence: no request for help, says IMF chief - The Irish Times - Mon, Nov 15, 2010

“I have not been in contact with Ireland, he told reporters, adding, “I think they can manage well”.

Mr Strauss-Kahn said: “If at one point in time . . . the Irish want some support from the IMF, of course we will be ready” but added that “until that it’s business as usual”.

Mr Strauss-Kahn said he was “confident” that Ireland would solve its problems and described the current predicament, which is a banking issue, as “totally different” to that of Greece.

The Irish situation is mostly linked to the problem of the banks, especially one big bank, not only one, but mostly one big bank. It’s not the same thing as the Greece problem, which was at the same time a fiscal problem but also a competitiveness problem,” he said.

“And one of the difficulties for the Greek government . . . is that they also have to solve this competitiveness problem. Without solving this problem, they won’t find a way out.” – (AP, Reuters)


Please explain.
fromt he article: 'A FORMER chief economist at the IMF has warned that Brian Lenihan must immediately ask the IMF for a bailout or risk bankrupting the Irish state.'
 

anewbeginning

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The Irish state isn't borrowing anything at the moment anewbeginning, just to be clear.


Greece isn't doing too well after seeking external assistance. An EU audit revealed that Greece's debts are higher than reported and that cuts and tax increases imposed are having a negative effect.

http://www.politics.ie/economy/142746-greek-debt-higher-than-expected-eu-audit-reveals.html
(1) The markets are waiting in the long grass for us to borrow. You don't seriously believe the yields will decline by the Spring?

(2) It's the banks that need to borrow at the moment. At the moment they are borrowing from the ECB, but it looks like the ECB want this situation to stop, since they are massively exposed to Irish debt.

(3) Worries about Irish banks ability to borrow and hence payback creditors has the yields of other nations like Portugal high.

We are just digging ourselves into a bigger and bigger hole as a nation. Cowen is not leading us out of the mess, he's leading us deeper into the mess. Am I the only one who has recognised this? He's a poor leader and poor leader's always make poor decisions. Now more than ever we need a good leader.
 

jimmyfour

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Thanks to Robut http://www.politics.ie/economy/137541-has-run-ireland-begun-408.html#post3170310

Deserves a post of its own.

http://news.infoshop.org/article.php...01115071324920

IMF expert warns Ireland to 'seek bailout now'

"Simon Johnson, Professor of Entrepreneurship at Massachusetts Institute of Technology and a member of the Congressional Budget Office's Panel of Economic Advisers, has a stark message for the Irish Government.

"For the sake of the Irish people, it's time to go to the IMF. If you go in now and if you go in with your partners, you will get a good deal. You may not get such a good deal next week. It would have been a much better deal if they'd gone in February because Ireland wouldn't have had to go through all this discretionary tightening along the route.""
"Having encouraged your politicians with their parochial provincial ways to line their pockets with cash from Goldman Sachs and their kind, we would now like to have our pound of flesh. Borrow now. Or tomorrow we will have two pounds of flesh".

Harney's Response: "I will gladly pay you Tuesday for a hamburger today".

Seeing as none of this debt was the doing of me, or most people in the country, why are being forbidden from telling the government and it's private sector developer and bankers to go shove it. Everyone will probably keep being able to pay their mortgage, credit card, etc., as long as they are not crippled with taxes to pay off Goldman Sachs bondholders.

The only way the country can continue with any degree of success for it's citizens/corporate assets, is to have Anglo, AIB, BoI all f u ck off to Mars with Fianna Fail, Gael, Labour and SInn Fein because they are all the same.

Direct Democracy Republic, and end to our parliamentary style system so that thye cannot sell us like a gambler betting his family home.
 
M

MrFunkyBoogaloo

(1) The markets are waiting in the long grass for us to borrow. You don't seriously believe the yields will decline by the Spring?

(2) It's the banks that need to borrow at the moment. At the moment they are borrowing from the ECB, but it looks like the ECB want this situation to stop, since they are massively exposed to Irish debt.

(3) Worries about Irish banks ability to borrow and hence payback creditors has the yields of other nations like Portugal high.

We are just digging ourselves into a bigger and bigger hole as a nation. Cowen is not leading us out of the mess, he's leading us deeper into the mess. Am I the only one who has recognised this? He's a poor leader and poor leader's always make poor decisions. Now more than ever we need a good leader.
1. No. I was just stating the obvious; the Irish state isn't tapping the money markets at the moment.

2. I assume they do too but that's their problem. The banks are private (with the exception of Anglo, unfortunately) so if the ECB wants to stop lending to them they should do so and then deal with the consequences themselves.

3. Not technically our problem. Again it's the ECB's.


Yes Clowen is a tool and no you're not the only one who realises this. 89% of the population do. I agree we need a good leader.

If Ireland is the straw that breaks the camels back, so be it. It's about time the whole corrupt financial system came crashing down anyway. I don't expect it will though. Not yet anyway.
 

Sham96

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(1) The markets are waiting in the long grass for us to borrow. You don't seriously believe the yields will decline by the Spring?

(2) It's the banks that need to borrow at the moment. At the moment they are borrowing from the ECB, but it looks like the ECB want this situation to stop, since they are massively exposed to Irish debt.

(3) Worries about Irish banks ability to borrow and hence payback creditors has the yields of other nations like Portugal high.

We are just digging ourselves into a bigger and bigger hole as a nation. Cowen is not leading us out of the mess, he's leading us deeper into the mess. Am I the only one who has recognised this? He's a poor leader and poor leader's always make poor decisions. Now more than ever we need a good leader.
English guy on Bloomberg earlier said something similiar. He painted a nightmare scenario of borrowing to pay bank debts now and then Ireland having to return at some later stage for more financial help to bail out the country.
 

Sucker Punch

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Yet another Expert weighs in with his two cents:

Sachs Says Ireland Needs to Take European Bailout Money: Video - Bloomberg

Jeffrey Sachs, a professor at Columbia University, discusses Ireland's debt woes and Europe's sovereign-debt crisis. VIDEO ON THAT PAGE

Robut
If you want a good account of Jeff Sachs' dealings with structural adjustment projects in the past the following is essential viewing.

[ame=http://www.youtube.com/watch?v=ufGpH8fEEvI]YouTube - How the Oligarchs were born...[/ame]
 

myksav

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(1) The markets are waiting in the long grass for us to borrow. You don't seriously believe the yields will decline by the Spring?

(2) It's the banks that need to borrow at the moment. At the moment they are borrowing from the ECB, but it looks like the ECB want this situation to stop, since they are massively exposed to Irish debt.

(3) Worries about Irish banks ability to borrow and hence payback creditors has the yields of other nations like Portugal high.

We are just digging ourselves into a bigger and bigger hole as a nation. Cowen is not leading us out of the mess, he's leading us deeper into the mess. Am I the only one who has recognised this? He's a poor leader and poor leader's always make poor decisions. Now more than ever we need a good leader.
Bull, Portugal's high yield is because Protugal is in the ************************e as well.
 

myksav

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anewbeginning

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Bull, Portugal's high yield is because Protugal is in the ************************e as well.
If the best economists in Europe tell you Ireland's banks are causing problems elsewhere, then I for one are not going to argue with them, and you probably shouldn't argue with them either.

That's the problem in Ireland, we have politicians with zero economics knowledge trying to lecture the professional EU economic experts.
 

Sucker Punch

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If the best economists in Europe tell you Ireland's banks are causing problems elsewhere, then I for one are not going to argue with them, and you probably shouldn't argue with them either.

That's the problem in Ireland, we have politicians with zero economics knowledge trying to lecture the professional EU economic experts.
Sorry, those expert being the very same that cobbled monetary union together, and did not anticipate the potential for ruinous consequences which the periphery would inevitably accrue in the event of financial difficulties?
 
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Its funny, but we have blown 80 Billion on the banks here and now we need 80 billion to borrow from the EU!

Not hard to do the math!
 

wombat

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If Ireland is the straw that breaks the camels back, so be it. It's about time the whole corrupt financial system came crashing down anyway. I don't expect it will though. Not yet anyway.
The only backs in danger are ours. We know the euro will be protected, we don't know what the cost to the Irish people will be. The IMF has a track record, there is no reason to believe their solution for Ireland will be much different to those for other countries. The EU/ECB are an unknown quantity, their primary concern will be to protect the euro - we know they have kept the banks on life support - has that been to our advantage?
 


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