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

[Bogball XV]

   

there are no economists or bankers or auditors in the Dáil as far as I know. 

Not like Anglo - Irish, AIB, Bank of Ireland , Quinns, McNamaras, Pierse etc etc .
Some fcukin use Bankers, Economists, Audtors are to anyone 

Good point. The auditors were hopelessly compromised. There should be heads rolling in the accountancy field as well but the snouts are still in the trough.

you haven't seen the pwc thread yet??

[muppet]

I watching Harney on the News, paint last week, eggs and cheese this week.

My two year old pointed at her and said 'monkey'.

I thought he will do good.

[seafoid]

Muppet

Will you be selling printed and bound editions of the thread for Christmas? 
A wonderful heirloom for future generations. 

[muppet]

Muppet

Will you be selling printed and bound editions of the thread for Christmas? 
A wonderful heirloom for future generations.

Great idea. I'll print it on the back of the abandoned Kilkenny 'drive for 5' posters. Should be a few of them about. Would a €9.99 price work?

[muppet]

http://www.bbc.co.uk/news/business-11750676

BBC reporting that we are currently in talks for funds from the EFSF. If that is true we are asking to be bailed out.

[armaghniac]

Well it is prudent to see what the story is, even if it doesn't prove necessary to use it.

[mayogodhelpus@gmail.com]

AIB down to 28 cent.
Irish Life 1.10
Bank of Ireland 42 cent

Compare the sad decline of the major financial institutions :

http://www.irishlifeandpermanent.ie/investor-relations/share-information/share-chart.aspx

it's difficult to know how there's any value attached to AIB at this stage?

I bought them @ €23.50'ish they be worth more to me to wipe my arse with than buying bogroll now 

[muppet]

http://www.ft.com/cms/s/0/cdef84ce-ef41-11df-8bbb-00144feab49a.html#axzz15BelUCm4

FT reporting that EU ministers meeting to discuss whether we need aid before the markets open on monday.

Out of our grubby hands now by the sounds of it.

[seafoid]

This article by highly respected PIMCO bondwalla Mohamed El Erian is very interesting. His point is that EU policy to date isn't enough.

http://www.ft.com/cms/s/0/11ad1ab8-ee49-11df-8b90-00144feab49a.html#axzz15CAmwtii

"So far, Europe's response has consisted of two elements: peripheral countries (and particularly Greece and Ireland) embarking on ambitious austerity programmes; and, simultaneously, these countries receiving external funding through access to the ECB's balance sheet and, in the case of Greece, loans from the European Union and the International Monetary Fund. But the lesson of numerous crises in emerging economies show that this approach simply kicks the can down the road. It does not deal with the basic problems: the overhang of debt (an acute problem for Greece and Ireland in particular) and poor competitiveness. "

Austerity alone isn't enough. And this crisis now is about more than Ireland. So I think the EU will get the finger out. 

[mayogodhelpus@gmail.com]

BBC news was reporting earlier that they had recieved info saying Ireland in talks re E.U. bailout.

[muppet]

http://www.rte.ie/news/2010/1115/ntma-business.html

RTE now finally running with the story calling it 'high level' talks. Funny how our media are behind international media on reporting about our government.

The issue now seems to be we are funded into the middle of next year (we are broke by June depending on how you like your 50% filled glass). However the banks that we guaranteed need loads more money or face collapse. If we give them the money we are no longer funded into the middle of next year and might be broke on Bloomberg's 60 day timeline or even less.

Lenihan is in the Indo this morning claiming he is seeking a bailout for the banks but not the State. Seeing as the State owns most of, and guarantees all of, the banks this seems like spin just for the sake of it.

[seafoid]

The banks would appear to be the problem. The State can't afford any more losses.

But it's not all doom and gloom lads. There are still rashers and sausages and the Mayo lads will go through the rituals of spring as soon as the daffodils and snowdrops appear agus mar sin de. And the snowdrops will reappear but Sam probably won't in Mayo.   

[Bogball XV]

The banks would appear to be the problem. The State can't afford any more losses.

But it's not all doom and gloom lads. There are still rashers and sausages and the Mayo lads will go through the rituals of spring as soon as the daffodils and snowdrops appear agus mar sin de. And the snowdrops will reappear but Sam probably won't in Mayo.   

I think that's just another attempt by FF to shift the blame from their total mismanagement of the economy onto the nasty evil bankers.  The banks are obviously an issue, but the deficit is a much bigger issue imo.  The bank losses will be dependent to a large extent on how the deficit is managed. 

[seafoid]

The banks would appear to be the problem. The State can't afford any more losses.

But it's not all doom and gloom lads. There are still rashers and sausages and the Mayo lads will go through the rituals of spring as soon as the daffodils and snowdrops appear agus mar sin de. And the snowdrops will reappear but Sam probably won't in Mayo.   

I think that's just another attempt by FF to shift the blame from their total mismanagement of the economy onto the nasty evil bankers.  The banks are obviously an issue, but the deficit is a much bigger issue imo.  The bank losses will be dependent to a large extent on how the deficit is managed.

Surely the 6bn in cuts and the 15bn total slash plan shows that there is going to be action on the deficit. But yields haven't moved.
This was in the Sunday Tribune yesterday

10 reasons the markets don't believe us

1. Angela Merkel is seeking to save German and French taxpayers from paying for Greek, Irish and Portuguese debt.
2. The banks are running rings around the government – even still.

3. The total cost of bailing out the banks – €50bn and rising – is not yet certain.

4. The government is threatening to do more damage to the economy with its handling of the crisis.


5. Mishandling means that more than €15bn will be needed in future budgets.

6. Cutting our budget deficit to 3% of GDP by 2014 is impossible.


7. Stating that we have opted out of
bond markets is untrue – we have
been kicked out.


8. Public-service reform has not occurred and the cost continues to be enormous.
9. The mortgage default situation as was outlined last week is likely to increase over the next four years.

10. Trust has been eroded – those who presided over the crisis cannot be the solution.
http://www.tribune.ie/news/article/2010/nov/14/what-would-happen-if-lenihan-calls-for-the-cash/

[seafoid]

Bogball- something else. The banks are totally dependent on the Euro central Bank for funding since the markets are effectively closed to them with Irish bonds at 8% and corporate bonds if you could sell them at a higher rate. I think the ECB has €110 bn in bank assets or something like that. all bonds being rolled over are being taken up by the ECB. 

I have a report from NCB from January that says Irish Life and P should rise to €6 from €3 by year end. Today it is less than €1 - all due to this funding issue I think.