Trading recklessly: Ireland's consolidated financial system insolvent - Buiter

He3

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in our view, the consolidated Irish sovereign and Irish domestic financial system is de facto insolvent. The Irish sovereign cannot from its own resources ‘bail out’ the banks and make its own creditors whole.

Willem Buiter, Chief Economist at Citigroup, shares a few home thoughts from abroad

http://www.nber.org/~wbuiter/sdcupdate.pdf

More by John McHale here:

Buiter’s Bombshell at The Irish Economy
 
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Squib

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in our view, the consolidated Irish sovereign and Irish domestic financial system is de facto insolvent. The Irish sovereign cannot from its own resources ‘bail out’ the banks and make its own creditors whole.
I don't accept that!
 

He3

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This government is incapable of facing reality, much less dealing with it. That means they are incapable of actually governing.

Until we remove them we will continue to be walked further along the plank.
 

He3

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Buiter used to be a consultant to Goldman Sachs.

*ducks*
 

Iarmuid

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Buiter used to be a consultant to Goldman Sachs.

*ducks*
Put to both the opposition and the government - is the banking sector and by government edict (in that they have linked both) the country insolvent?. Economics 101 you CAN NOT solve an insolvency with a compounding interest bearing loan, liquidity maybe not insolvency, the rationale for the bailout at circa 5.5% should be explained under terms of insolvency.
 
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whats up dock

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So what !!! Default and life goes on. There will be a lot of pain for the Public secor and welfare state, but they cannot expect a free lunch forever.... We can get competitive again and create real jobs and the unions and government should be not allowed to allow us the REAL workers to pick up the tab for their free lunch...:mad:
 

He3

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Put to both the opposition and the government - is the banking sector and by government edict (in that they have linked both) the country insolvent?. Economics 101 you CAN NOT solve an insolvency with a compounding interest bearing loan, liquidity maybe not insolvency, the rationale for the bailout at circa 5.5% should be explained under terms of insolvency.
If a limited company tried this, the Directors would be trading recklessly.
 

Doodah

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in our view, the consolidated Irish sovereign and Irish domestic financial system is de facto insolvent. The Irish sovereign cannot from its own resources ‘bail out’ the banks and make its own creditors whole.

Willem Buiter, Chief Economist at Citigroup, shares a few home thoughts from abroad

http://www.nber.org/~wbuiter/sdcupdate.pdf

More by John McHale here:

Buiter’s Bombshell at The Irish Economy
This comment is Utterly Buiterly.
(Sorry).
 

Cassandra Syndrome

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Let me work this out for a minute to see;

Total Savings €180 Billion
Total Income €120 Billion
Total Debt €1 Trillion

Whoops, we are fooked....

Adam Smith said over 200 years ago the economics of a nation is no different from the economics of a household.

Now how can a household service 800% growing debt of its shrinking income and 500% growing debt of its savings? By taking out another 5.8% loan?

In an economy, total savings should equal total debt.
 

He3

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Let me work this out for a minute to see;

Total Savings €180 Billion
Total Income €120 Billion
Total Debt €1 Trillion

Whoops, we are fooked....

Adam Smith said over 200 years ago the economics of a nation is no different from the economics of a household.

Now how can a household service 800% growing debt of its shrinking income and 500% growing debt of its savings? By taking out another 5.8% loan?

In an economy, total savings should equal total debt.
It's not rocket science.

More's the pity. Scientists could not have made such a bags of it.
 

He3

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