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

[seafoid]

NAMA won't do anything to help Ireland's productivity problem.
FF inflation was great craic while the party lasted but now someone has to pay for it.  The next few years are looking very austere. Hopefully Galway hurlers will bring some joy along Otherwise a Mayo all-Ireland would do the trick. 

[gerrykeegan]

Anyone else tuning in?

Average of 47% discount so far.

Thought it was funny to hear the RTE guy describe the figures as humongous!

[whiskeysteve]

Excuse my ignorance of financial matters but did i just hear an analyst blithely mention that Lenihan just announced an extra 10billion will be paid in the future on top of the 8 billion to be paid in the shorter term.

Which will be on top of the 4 billion already whipped out. Thats 22billion to feed the banks, have i got that right?

Payments til 2025 or something

[orangeman]

Excuse my ignorance of financial matters but did i just hear an analyst blithely mention that Lenihan just announced an extra 10billion will be paid in the future on top of the 8 billion to be paid in the shorter term.

Which will be on top of the 4 billion already whipped out. Thats 22billion to feed the banks, have i got that right?

Payments til 2025 or something

Probably more.

[whiskeysteve]

Yeah im wrong thats just for AIB.

Unreal

[bcarrier]

One question only

Why do anglo bond holders have to be paid ?

[muppet]

One question only

Why do anglo bond holders have to be paid ?

Because of 'the cheapest bailout in history' also known as the Bank Guarantee.

[LaurelEye]

Yeah im wrong thats just for AIB.

Unreal

You're still wrong.

That's just for Anglo.

[Bogball XV]

One question only

Why do anglo bond holders have to be paid ?

Because of 'the cheapest bailout in history' also known as the Bank Guarantee.

that's right, i had totally forgotten how they used to bandy that phrase about with gay abandon back in the heady days of Sept/Oct 08

[muppet]

The deal with the unions is amazing. No more pay cuts for them.

That means (unless someone can see another possibility) one of either:

a) the Government is about to fall before they have to honour this deal

or

b) there are be serious tax hikes for everyone on the way.

I hope it's a).

[LaurelEye]

The deal with the unions is amazing. No more pay cuts for them.

If I was being cynical, it gives the government a diversion as the country's future is poured down the gullets of Anglo, Irish Nationwide, et al.

Divide et impera and all that jazz.

[whiskeysteve]

Yeah im wrong thats just for AIB.

Unreal

You're still wrong.

That's just for Anglo.

Apologies, Anglo.

Anyway with figures like that... miserable public finances for decades to feed a black hole...

[muppet]

Credit where credit is due. Hours after the Bank Guarantee Bogball posted this:

Just back from the beer I mentioned earlier.

Shouldn't have gone.

From what I hear Irish banking will not be the same by lunchtime today. Better stay in bed.

Beer on a Monday night is never a good thing unless you've just won the AI - In that instance, it's almost compulsory ! 

Good news for Irish banking ?

Will UK and other governments follow suit ?

I don't know the ins and outs of it yet, but it seems to be a massive piece of bluffing by lenno - if he were ever asked to pay up, he couldn't, i suppose it depends on how long it will be before the markets either test his promise or just decide to disbelieve him.  If he has to come up with the goods, it'll be a disaster for the taxpayer.  We're currently talking about the budget from hell coming up because tax revenues are short by 7bn on estimates (you have to wonder what idiot came up with the estimates), yet the minister finds it okay to guarantee over €400Bn of loans made by banks?  If 10% go bad (probably not an unreasonable assumption) that's €40 Bn, almost our total annual budget.
It would have been a better idea to force some mergers between the banks who appeared in serious bother yesterday and the ones who just appeared in bother.

I thought this was worth posting for a laugh. I actually miss his FF worshipping.

Surely the Irish banks are solid now?

[seafoid]

One question only

Why do anglo bond holders have to be paid ?

the billion dollar question. Probably someone told Lenihan it couldn't happen.
Under Chapter 11 bankruptcy in the US apparently the holders of less senior debt get wiped out. 
They took the risk and they pay for failure. In Ireland the taxpayer takes the hit. There is no hope of ever getting the money back from Anglo.

[seafoid]

Credit where credit is due.

but there is no credit!