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Why not sell bonds to Irish deposit holders? letter in IT


asset test

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Interesting this. I mentioned it in another thread a few days ago. Why not sell bonds to Irish deposit holders? There are many billions on deposit in Irish banking institutions doing very little. The letter writer asks why sell bonds only to international bondholders?? Why not ask those with big deposits here to lend to the Government?

Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)

Any views?

The Irish Times - Letters
 

He3

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Before you invest, read Kathleen Barrington on this topic in today's Business Post. Or even have a look at the Financial Times blog Alphaville quoting Reuters - the heading is Let them eat Irish Bonds.
 

hmmm

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Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)
An Post already sells government debt (through certain products) to Irish people. Reasonable enough returns too.

However, deposits are generally seen as low risk investments. Irish government bonds would certainly not come under that category and you don't want to end up selling them to widows and orphans.
 

He3

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An Post already sells government debt (through certain products) to Irish people. Reasonable enough returns too.

However, deposits are generally seen as low risk investments. Irish government bonds would certainly not come under that category and you don't want to end up selling them to widows and orphans.
Yet Irish Pension Fund managers are gagging for them to the point of lobbying for a change to the Pension Act apparently.

Now why might that be?
 

hmmm

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Yet Irish Pension Fund managers are gagging for them to the point of lobbying for a change to the Pension Act apparently.

Now why might that be?
Pension fund managers mix asset classes of different risk types together. It's hardly a giant conspiracy.
 

He3

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No one has suggested a conspiracy - why do you deny something that has not been said?
 

karldaly

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.
You would want to be pretty dumb to buy bonds from this bunch of thieves.
.
.
 

gijoe

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Interesting this. I mentioned it in another thread a few days ago. Why not sell bonds to Irish deposit holders? There are many billions on deposit in Irish banking institutions doing very little. The letter writer asks why sell bonds only to international bondholders?? Why not ask those with big deposits here to lend to the Government?

Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)

Any views?

The Irish Times - Letters
We had it not so long ago........it was called the National Solidarity Bond......it flopped.
 

hmmm

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If, as has been suggested, there is €88 billion of Irish savings on deposit, surely it is a good time to get some of that flowing through the economy to build the schools etc we will need for a growing population
One of the last acts of the Argentinian meltdown was the government seizing people's deposit accounts. Seeing talk of "getting that money flowing" reminds me of those days.
 

Gemlarkin

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Better to sell bons to foreigners so that they take the loss when we default

Better to sell bonds to foreigners so that they take the loss when we default
 
Last edited:

Cassandra Syndrome

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Household Savings should go to lending to businesses and entrepreneurs who produce goods and services that we need, at a rate of interest determined by the market.

Household savings should never go near bits of paper which keeps statists fat and fit and in a position to produce tyranny.
 

Cassandra Syndrome

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Better to sell bons to foreigners so that they take the loss when we default
In a Homer Simpson like manner

"Please be Germans, please be Germans, please be Germans...."
 

Suetonius

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Altough the idea has a certain amount of superficial attraction, I can't see it doing any good. For one thing a rush out of Irish deposits and into Irish government bonds would precipitate a funding crisis for the banks (which would then turn to the taxpayer for even more capital). For another, the bonds would have to offer the same privileged (i.e.reduced) rate of taxation on interest income that applies to Irish-based deposits.It might be best to try something else.
 

bormotello

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Interesting this. I mentioned it in another thread a few days ago. Why not sell bonds to Irish deposit holders? There are many billions on deposit in Irish banking institutions doing very little. The letter writer asks why sell bonds only to international bondholders?? Why not ask those with big deposits here to lend to the Government?

Most deposits are around 3.5% if you're lucky. The bond auctions recently were being charged around 6.5% and rising. If I had 100,000 and was offered say 5% or so over ten years I might consider it. (minimal taxes and exit charges of course too!!)

Any views?

The Irish Times - Letters
There is no money on deposits. There are only statements that there is money on deposits. But government needs real money, not transactions from empty banks
 

asset test

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There is no money on deposits. There are only statements that there is money on deposits. But government needs real money, not transactions from empty banks
Aaaaaghhh! So there goes my trip abroad with my hard earned savings so.

So where is the real money then?
 

bormotello

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So where is the real money then?
Anywhere else
CSO - Statistics: IMF Summary Data-Ireland
Exports of goods and services 40,321
Imports of goods and services -32,798
Balance of primary incomes with the rest of the world -8,133
balance -600
i.e. money are running away from Ireland with speed 600 millions per quarter

BTW, if people will withdraw money from their deposits to pay for bonds, it will be equal run on banks and banks will collapse immediately
 
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