The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[orangeman]

Scary enough but where does inflation come into this ?

We will be talking about deflation from now on.

How do you cure deflation Or do you want to cure it ?

[muppet]

Scary enough but where does inflation come into this ?

We will be talking about deflation from now on.

How do you cure deflation Or do you want to cure it ?

Dunno, get people spending I suppose.

This is from Wiki so the usual grain of salt warnings apply:

there is a fall in how much the whole economy is willing to buy, and the going price for goods. Because the price of goods is falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces overall economic activity - contributing to the deflationary spiral

[Bogball XV]

Scary enough but where does inflation come into this ?

We will be talking about deflation from now on.

How do you cure deflation Or do you want to cure it ?

we certainly don't want global deflation, but for ireland, a couple of years of it would maybe bring us back into sync with the rest of europe - although as someone else pointed out previously, there are problems for both individuals and govt in trying to repay debts previously incurred as their incomes are decreasing.

[kumquat]

quick question lads. i know endowment policys are forecast to fall short of their expected yield, but will the credit crunch/recession increase this short fall?

[orangeman]

How many hoses were sold / bought as past 10 years leaving the own of same in negative equity and who would now be faced with a difficulty in paying the mortgage. The answer to this might give the govt some indication as to how big the problem is amongst the general public.

[thebigfella]

How many hoses were sold / bought as past 10 years leaving the own of same in negative equity and who would now be faced with a difficulty in paying the mortgage. The answer to this might give the govt some indication as to how big the problem is amongst the general public.

I don't get that, if you could afford to pay the mortgage before the negative equity, why would that mean you can't meet your mortgage repayments? With interest rates falling are quiet a few people's mortgage repayments not less?

[Declan]

i know endowment policys are forecast to fall short of their expected yield, but will the credit crunch/recession increase this short fall?

Yes I'd have thought

[orangeman]

Kenny taking 10% cut in RTÉ salary
RTÉ's Pat Kenny has joined several other highly-paid broadcasters in agreeing to take a 10% cut in his salary.


In a statement, the broadcaster said: "I wish to confirm that my company has informed RTÉ of my willingness to accept a 10% cut in my salary for 2009.

"I do not normally comment on arrangements for my services to RTÉ. However, I feel it is appropriate to clarify my position at this time.


Advertisement"Everyone has a responsibility to accept the financial challenges facing the State and to examine the role that they can play in working to ensure that we pull through this economic crisis.


"I am pleased to play my part in this way.

[the Deel Rover]

Wouldn't it be great to have a mortgage like this


No interest

Some borrowers will find they no longer have to pay any interest on their mortgages if the Bank Rate is cut to 1%.

The Cheltenham & Gloucester (C&G), one of the mortgage lending arms of Lloyds Banking Group, has 1,500 customers whose tracker deals are set at 1.01% below Bank Rate.

At first they will be charged at just 0.001%, to give the lender time to adjust its computer systems.

For someone with a £100,000 mortgage this would mean paying 8 pence a month in interest.

Then the customers will pay no interest at all, and will be repaid their small overpayment.

However, the C&G said it would not go as far as regularly repaying interest to these borrowers - a negative interest rate - as their deals have a "collar" that sets the minimum rate at 0%.

never heard of a tracker set at below a bank rate i have a tracker thats at .6% over the Ecb and i'm happy enough with that would rather if i had no mortgage though

[Rois]

Now I see that Ernst & Young the auditors of Anglo are refusing to appear before the Public Accounts committee

I take it you didn't read the articles surrounding this that said they would be happy to cooperate with the committee when other investigations on internal bank matters (those closest to the undisclosed loans) had been completed.  Laying your anger at the door of the external auditor is rather ill-informed.  I'd start with the lowest level of authority in the bank and work my way upwards in any investigation - there are a few layers to get through before the external auditors become involved. 

These b**tards have no shame and yet are part of the business classes that are currently lecturing us on the need to take pay cuts and cut public services  

I think your emotions are running away with you.  "Business classes"?  What does that mean?  How can Anglo's external auditors be blamed for government policies on trying to resolve the current situation?

[Bogball XV]

These b**tards have no shame and yet are part of the business classes that are currently lecturing us on the need to take pay cuts and cut public services  

I think your emotions are running away with you.  "Business classes"?  What does that mean?  How can Anglo's external auditors be blamed for government policies on trying to resolve the current situation?

Maybe it's a little harsh to call poor E&Y those horrible names, but they have quite a bit of explaining to do as to why they didn't make shareholders aware of the chairman's loans.  The public perception (whether justified or not) is that all these guys such as the E&Y partners and Seanie are mates, play tennis and golf together, probably played a bit of rugger together at school too and that's why transparency is such a problem in the irish business community.

[Smokin Joe]

have any of the auditor bashers heard of "the expectation's gap"?

http://www.abrema.net/abrema/expect_gap_g.html

[Billys Boots]

If auditors can't 'find' evidence (even when they're not looking for it) of mismanagement on the Anglo scale, then either: (a) Anglo were masters of deceit, or (b) they're not doing their job adequately.  If (a) is true, and the auditors can be codded, is there a point to the 'audit' at all?

[passedit]

If auditors can't 'find' evidence (even when they're not looking for it) of mismanagement on the Anglo scale, then either: (a) Anglo were masters of deceit, or (b) they're not doing their job adequately.  If (a) is true, and the auditors can be codded, is there a point to the 'audit' at all?

Indeed Billy, i'd expect a layman never mind an experienced auditor to spot 82m dissappearing then reappearing annually. I'd be interested to see what the revenue commissioners eventually make of these loans.

[Bogball XV]

have any of the auditor bashers heard of "the expectation's gap"?

http://www.abrema.net/abrema/expect_gap_g.html

yeah and the auditor is a watchdog, not a bloodhound etc etc etc - still loans of €127M out of a total loan book of 60Bn would be expected to be identified, especially when they're being moved in and out in the same fashion for 6/7 years in a row - what do they call that again - Window Dressing??