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

[bcarrier]

Welcome to my world hardy.

My other half has told me there is no point in shouting at the television.

[Bogball XV]

RTÉ news are reporting that the bailout interest rate is to be 6.7%.

That's it. Forget it. That's rape. 8.75 billion per annum in interest. THE IMF/EU/EFSF must be told to sling their hook, we're revoking all guarantees, the bondholders can take their medicine and we're borrowing just enough for the budget deficit. If they want us to co-operate in saving the Euro they play ball or f**k off.

agree with all of that, except that according to the lads on Vincent Brown last week, that 8.75Bn interest will actually be about 14Bn when all our funds are drawn down.  As I said earlier, I honestly think they know that this is actually unaffordable, no ifs, no buts, this nation cannot ever, ever pay that money back.  However they think that for the time being if play ball and pretend that we're going to pay it, we can revisit the bondholders next year, assuming that everything has settled down.

I still think that the suggestion for a eurozone bond is the only solution in the long run, let's see just how serious the EU is about helping its neighbour, I know there'd be some crying here if we were told our national borrowing rate was going to rise because we've committed to helping out portugal for example.  I'd expect the same in Germany, France....

[Peter Solan the Great]

This is Fianna FAIL spin. What scum they are.  They then will announce a lower interest rate and say what a great little victory it was and what great negotiators they are.

[bcarrier]

Probably correct Peter. More noise/ smoke/mirrors to push through bank bailout- which should not happen.

I am slightly encouraged by fact that more and more people are awake to what is happening.

Update: lower rate now quoted by times . Sensible post on p.ie

My guess is that the IMF tranche (25%) will cost 3.3%, say, 4.0% for the contribution (10%) from the Brits/Swedes and 6.7% from our so-called friends in Europe (65%). This would produce a blended rate of around 5.7%. Even this is too high and may lead to demands for a bigger haircut for the bondholders than is achievable. If so, they could find that the credit market shuts down on Monday. The implications of this for day-to-day bank funding would be dreadful.
The irony of all this is that Lenihan may have got away with burning the bondholders after the Lehman collapse whereas trying to enforce a haircut now will have a terrible effect. Besides, having blown €55bn of our money in repaying bondholders over the past 2 years, Lenihan is far too late in changing tack. While Lenihan may get his come uppance in the forthcoming election, the same is not true of his permanent advisers throughout all this, the Dept. of Finance. The incoming government needs to clear this lot out. They have been out of their depth for years and their incompetance has cost the State a fortune.
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[Declan]

Well I went to the march today and am more hopeful than I was. Hopefully people are waking up to what's happening to us. I see RTE Pravda had it at 25000 on the one o'clock news and then revised it to 50K. I thought there was more like 100K there myself with the numbers stretching all the way from Christchurch to O' Connell Street

[bcarrier]

Too late Declan.

http://www.nytimes.com/2010/11/28/business/global/28euro.html?src=busln

Deal done by sound of it. Budget irrelevant ..its all about switching ECB overnights on Irish Banks at 1% to sovereign at 6ish % . Even is rate was 1% it would be wrong. Blended rate is more than Greece's 5.2% . WALOFS.

[Declan]

so i hear bc - Mr Chopra and his mates spotted leaving the airport as well

[bcarrier]

There is some talk now on the pin now of NPRF having guaranteed some derivatives positions in the banks. Another 25bn down the pan ?

[muppet]

http://www.politics.ie/economy/144318-has-national-pension-reserve-fund-been-spent-banks-already.html

Not sure I understand this but judging by the reaction of (anonymous I now) posters there this could be the final collapse of the economy. If our banks gambled and lost without telling us we should round them all up immediately and put them in stocks. If I have to live on the street at least I will be able to kick these bastards everyday.

[bcarrier]

If true it seems that the country has been run like anglo.

If you are in a hole stop digging.

[muppet]

http://www.rte.ie/news/audio_popout.html?2862318,2862318,flash,257,{%22autoPlay%22:true,%22image%22:%22000372fd%22,%22audio%22:true,%22feedType%22:%22news-audio-long%22,%22title%22:%22This%20Week%22,%22descr%22:%22This%20Week%22}

RTE player above, Rabbitte starts discussing this at about 15 mins in. He describes it as information he has 'received'. If it is true the pension reserve is gone, without us knowing it or even getting any use out of it. That would be a disaster in itself but you have to ask what else has been promised to the banks' creditors/bondholders?

[bcarrier]

[Square Ball]

http://www.rte.ie/news/audio_popout.html?2862318,2862318,flash,257,{%22autoPlay%22:true,%22image%22:%22000372fd%22,%22audio%22:true,%22feedType%22:%22news-audio-long%22,%22title%22:%22This%20Week%22,%22descr%22:%22This%20Week%22}

RTE player above, Rabbitte starts discussing this at about 15 mins in. He describes it as information he has 'received'. If it is true the pension reserve is gone, without us knowing it or even getting any use out of it. That would be a disaster in itself but you have to ask what else has been promised to the banks' creditors/bondholders?

The entire country by the sounds of it, what else has been going on that will come out in the washing?

[muppet]

Well it seems Rabbitte might have been at least half right.

The spin: €85 @ 5.8% will cost €4.93 Billion in interest a year.

More likely: As €17 Billion is our own the €4.93 Billion interest is generated on the (€85 B - €17 B =) €67 Billion bailout. This gives a rate of 7.36%

[lawnseed]

so whats the situation muppet these scum have already raided the pensions money? wtf! WTF! WHY AREN'T THESE GUYS IN JAIL. the pensions money is the money that the shinners intend to use on projects to stimulate the economy should the good people of ireland grant them a mandate.