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

[seafoid]

http://www.bbc.co.uk/news/business-12282405

Things are going to get very tough for everyone and yet we still have no real debate about it

From that link
"As such, the economy would be dependent on a rebound in exports to drive the recovery."

All pigs refueled and ready for takeoff.

[Ulick]

Can anyone give a run-down on what's happening with the Finance Bill. Am I right in thinking it's being voted on today? If it fails and given that it's a 'money bill' will Cowen have to seek immediate dissolution a la Garret the Good in '82? 

[Hardy]

Yes and yes.

(At least some of it is being voted on today).

[Ulick]

Feck, just had a look at Dáil tv and there's only about four people in the Chamber debating the Second Stage of the Finance Bill - and that includes the Ceann Comhairle.

[armaghniac]

The Finance Bill is set to be passed, after Independent TDs Michael Lowry and Jackie Healy Rae indicated they will support it.

[Ulick]

Ta 80
Nil 78

Who was missing?

[armaghniac]

Who was missing?

Two FF D. Aherne & Dempsey were ill and were paired by FG.

[seafoid]

ECONOMISTS NOURIEL Roubini and Ken Rogoff, two of the most prominent academic commentators on the financial crisis, said the Government should compel senior bondholders to bear some of the cost of rescuing Ireland's banks.
Although second-class bondholders in some Irish banks have taken discounts on their investments, "haircuts" for senior bondholders were ruled out at the time of Ireland's bailout deal with the EU and the IMF.
Dr Roubini, nicknamed "Dr Doom" for predicting the crisis two years before it struck, said Ireland risked insolvency if senior bondholders were not tackled.

[muppet]

http://www.irisheconomy.ie/index.php/2011/01/28/anglo%E2%80%99s-january-31st-bond/

On Monday, January 31st, Anglo Irish Bank are going to pay out on a maturing bond worth €750 million. (For reference, the total cut in this year's welfare budget will be €873 million.) The investors who purchased this bond invested their money with Anglo on the 17th of January 2006. The bond is senior unsecured debt and is not covered by a state guarantee.

When you look at the reduction in your latest pay packet think about the above.

(my formatting)

[muppet]

http://www.thepropertypin.com/viewtopic.php?f=19&t=35376

Very interesting thread about the advice the Government received before deciding on the bank guarantee.

[muppet]

http://www.bbc.co.uk/news/business-12323587

Eurozone inflation rate increases to 2.4%

The ECB will start thinking about interest rate rises possibly before the year end. Those on tracker mortgages here (including me) will be watching closely.

[Declan]

Focussed on American bailout but very clever
http://www.youtube.com/watch?v=yipV_pK6HXw&feature=player_embedded

[seafoid]

http://www.ft.com/cms/s/0/4aa6522c-2caa-11e0-83bd-00144feab49a.html

"There is a rationale to delay if you really think you can make it through, but there is a tendency for delay unnecessarily, because the costs are exaggerated by financial markets," Mr Stiglitz says. "If debt is going to have to be restructured, it's better to be sooner than later

[muppet]

http://www.sbpost.ie/themarket/50-billion-in-loans-puts-solvency-risk-on-central-bank-54176.html

€50 billion in loans puts 'solvency risk' on Central Bank
30 January 2011 By Richard Curran

A staggering €50 billion of emergency funding to Irish banks by the Central Bank of Ireland could pose a threat to the very solvency of the Central Bank itself, a report by Citi has concluded.

The report, which examines the €50 billion in emergency liquidity assistance (ELA) provided by the Central Bank of Ireland (CBI) to Irish banks, also concluded that ''it is likely that the collateral offered (by the Irish banks) would not be accepted by the ECB''.

Citi suggested there was considerable secrecy around the precise mechanism under which this €50 billion was lent out, and the Central Bank has declined to comment.

Without firm confirmation from the Central Bank, it appears that the €50 billion in emergency liquidity is in some way guaranteed by the Irish state.

If it were to be added on to the national debt, it would increase the country's national debt profile by 31 per cent of GDP, according to Citi.

There does not appear to be a publicly available document which shows the Irish state has guaranteed this €50 billion.

Citi said that, if this money, provided to banks for their short-term cash needs, was not guaranteed and any prospective losses were not shared across the eurozone, then ''the Central Bank providing it is at risk of insolvency''.

The amount accounts for 24 per cent of the Central Bank's total assets.

Any losses on these loans above the Central Bank's €1.5 billion of capital would place it under extreme financial pressure.

Citi said that, even if the emergency loans were covered by the state, ''some risk of insolvency of the CBI because of its exposure to ELA remains, in our view, because the solvency and liquidity of the Irish sovereign itself is not beyond doubt.

That raises the spectre that, should the guarantees be called, the Irish sovereign may not be in a position to indemnify the CBI against these losses.

''The reluctance of the ECB and national central banks to discuss ELA suggests a certain uneasiness about the loss of monetary control and potential negative reputational and financial repercussions."

Under eurozone rules, national central banks can issue emergency liquidity assistance outside of the euro money system.

The ECB has the power to veto such a move, but it is available to central banks as an option.

They don't have to have this funding in cash and the deposits can be created, but ultimately the bank or its national government is liable should the banks fail to repay.

I really don't undertand why every citizen in the State doesn't have a book of newspaper cuttings such as the above, in one hand and a hurley in the other to be produced when FF canvassers come knocking.

[Lone Shark]

I really don't undertand why every citizen in the State doesn't have a book of newspaper cuttings such as the above, in one hand and a hurley in the other to be produced when FF canvassers come knocking.

Is such a thing actually happening though? I live in an apartment in Galway so I fully expect that I won't see any canvassers of any hue, however I haven't heard any anecdotal evidence off FFers knocking on doors anywhere - have they just given it up as a bad job maybe?