Massive thumbs down from markets for 4YP

He3

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The government's plan is not impressing the markets:


Bond markets have given a massive thumbs down to the Irish National Recovery Plan, which rather implies that investors don’t think it’s deliverable in Ireland’s traumatic political climate.

The yield on the Irish 10-year bond has risen to 8.89% – yikes, back to record levels.

As for strike-riven Portugal, whose banks (like Ireland’s) are excessively dependent on central bank support (to the tune of more than 8% of their liabilities, on my estimates), its 10-year government bonds are yielding 7%.

Meanwhile the yield on the Spanish 10-year has crept over 5%, for the first time since 2002.


BBC - Peston's Picks: How much capital do Ireland's banks really need?

What next?
 


sport02

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The actual 10 year Irish bond is actually 9.11%
Can you imagine, we hit the 9's, the sh1t hit the fan, and now we are back at the 9's

Apparently Cowen said the interest rate on the bailout will be circa 6%
The markets know we are throwing ourselves off the cliff.
 

FakeViking

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We could offer to sell Lenny to the North Koreans. It looks like they need a good spoofer, and he's a master at languages (ask Christine Legard).
 

Cato

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wildmind

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One wonders how many swiss or carribean bank accounts are full of the spoils of the Irish oligarchy
 

eoghanacht

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Strange days when Cato's beginning to sound like SS
 

Freedom front

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One wonders how many swiss or carribean bank accounts are full of the spoils of the Irish oligarchy

We need to find out , As Anglo bank was bailed out for a reason? need to establish who in FF have been paid off and put them in Jail
 

He3

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One wonders how many swiss or carribean bank accounts are full of the spoils of the Irish oligarchy
Kathleen Barrington points us to Austria -

The sale of Anglo’s Austrian business was completed on December 19, 2008, the day after FitzPatrick resigned as chairman after his dodgy loan dealing had been uncovered.

..the Valartis annual report reveals that the Austrian operation manages about 1.6 billion Swiss francs (€1.25 billion) for about 4,000 private banking clients.

Those clients can now remain very private indeed, far away from the scrutiny of the Irish state which stepped in and nationalised Anglo Irish Bank in January 2009 in the wake of revelations about FitzPatrick concealing large loans from his shareholders.

One of the big advantages of having money on deposit with an Austrian bank is that the identity of depositors cannot be disclosed to the authorities, as Austria enjoys certain derogations from the EU Savings Directive. This was and remains a key attraction for those who deposit funds in Austria. [...]

Let’s hope those clients don’t include any Irish depositors who might owe money to Anglo, to other struggling Irish banks or to the Irish taxpayer.




http://www.politics.ie/economy/138748-curious-tale-anglo-irish-bank-its-austrian-deposits.html#post3020626
 

eoghanacht

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One wonders how many swiss or carribean bank accounts are full of the spoils of the Irish oligarchy
Give me 4 rooms place bertie, cowen, fingers and seanie in each of them.

Then give me 24hrs a wet towel, a phonebook and a rubber hose. ;)

I'll get you acess codes and everything. Ofcourse nothing will be admissible in court but atleast we'd get the cash back
 

Keane

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I would be gratefull if somebody could answer two questions for me......

1. The €85b bailout we are getting, does that include the cost of covering the MASSIVE Irish mortage default that is steaming down the tracks towards us?

2. What will default mean to the everyday life of an ordinary Joe Soap?
 

Cato

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Strange days when Cato's beginning to sound like SS
Ara, I was just joking (honest). I am against the death penalty, but I do think that a measure of justice needs to be served on the politicians that lead us into this mess. Take their pensions off them (or reduce them to the state pension if you feel merciful) and ban them from holding public office for ten years. Ahern and Cowen should be banned from public office for life. The next government should propose a referendum to that effect.

(As an appropriate punishment Harney could be given a medical card and then prohibited by law from accessing any other medical service, public or private, other than that which the medical card entitles her too. Let her live with the health 'service' she created.)
 

Cato

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I would be gratefull if somebody could answer two questions for me......

1. The €85b bailout we are getting, does that include the cost of covering the MASSIVE Irish mortage default that is steaming down the tracks towards us?
No, it does not. That will be the crisis that will finally bring this farce to an end, if it doesn't end sooner.

2. What will default mean to the everyday life of an ordinary Joe Soap?
Look to what happened in Argentina or Iceland. We don't have to default on the sovereign debt, just anything to do with the banks (which we should never have been responsible for in the first place).
 

Cato

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Give me 4 rooms place bertie, cowen, fingers and seanie in each of them.

Then give me 24hrs a wet towel, a phonebook and a rubber hose. ;)

I'll get you acess codes and everything. Ofcourse nothing will be admissible in court but atleast we'd get the cash back
Have both of us caught the SS bug? :shock:
 

clonycavanman

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Markets should be asking themselves; what's the long-term plan to improve Irish competitiveness? Specifically...

Does Ireland have a more detailed plan to achieve rocket-like growth for four years other than 'smart economy' intoned regularly at momments of political panic?
Will the educated young adults, specifically, be leaving?
Will Ireland remain an attractive destination for welfare recipients?
Will Ireland see the return of tax-exiles, and their needed taxes?

Fianna Fail are still hoping to get through this with 'no change'.
 

sport02

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I would be gratefull if somebody could answer two questions for me......

1. The €85b bailout we are getting, does that include the cost of covering the MASSIVE Irish mortage default that is steaming down the tracks towards us?

2. What will default mean to the everyday life of an ordinary Joe Soap?
The bailout has nothing to do with the mortgage crisis that may ensue, it is for the extra-capitalisation of the banks, as the ECB are sick of us.
The rest is for the daily running of the country over the next couple years, as with the current bond rates, it is impossible to go to the markets.
Some analysts think we made need more.

Finally if we default, one would imagine re-structuring of our debts would enter the fray.

Prob best to default, as the bailout is 6% that is unsustainable.
 

Keane

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Thanks lads, I'm getting a crash course in things I never knew or wanted to know before so excuse any siily questions. Cato am I wrong in believing that the bank debt is part of the sovereign debt? What will it mean for the man on the street? Will the euro be worth the paper its written on when Spain go down the same tracks as us?
 

meriwether

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The government's plan is not impressing the markets:


Bond markets have given a massive thumbs down to the Irish National Recovery Plan, which rather implies that investors don’t think it’s deliverable in Ireland’s traumatic political climate.

?


Thats not the reason its not impressing the market.

Its not impressing the market because its pissing on an inferno.

Look at the debt sum advanced on VB last night - €330bn.

A 5% interest rate on that is €16.5bn per annum, on a tax take of 35bn-40bn per year.

In other words, our entire fiscal adjustment - 15bn over 4 years is less than one years interest once the rescue package is implemented.

People need to understand this.
 


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