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Anglo Irish Bank Downgrade Raises Pressure On Ireland

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http://www.guardian.co.uk/business/2010/sep/27/anglo-irish-downgrade

A critical week for the Irish economy started badly today after a ratings agency issued a deep downgrade on Anglo Irish Bank, the most troubled bank in the former "Celtic Tiger" economy, hitting the euro and increasing the price the country must pay to borrow on the money markets.

As speculation mounted that the embattled Irish government is poised to admit that it has cost €35bn (£30bn) to bail out Anglo Irish – more than a fifth of the country's GDP – the main opposition party seized the moment by claiming it would try to force a snap election.

While Ireland batted off concerns about its economy, the UK's coalition government was basking in support from the International Monetary Fund, which concluded that the planned cuts in public spending would not derail growth.

The IMF praised the UK government's "strong and credible multi-year fiscal deficit reduction plan" and declared the economy "on the mend".

While the IMF was supporting the UK's budget deficit reduction plans, the Portuguese were under pressure from the Organisation for Economic Co-operation and Development to increase taxes. The OECD said that the government should "stand ready to raise taxes further" to help tackle debt problems.

The Irish government has already pushed through deep cuts in spending to slash the deficit from 12% to less than 3% by 2014 but while Ireland's economy grew in the first three months of the year, data last week showed it had started to shrink again in the second quarter, by 1.2%.

So Ireland has blown 20% of GDP to bailout the bankers. Lucky people are the bankers it appears we cannot do without them.

And if GDP keeps contracting the bailout cost as a ratio to GDP keeps increasing. Still without bankers we can't have economic growth.

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http://www.guardian.co.uk/business/2010/sep/27/anglo-irish-downgrade

So Ireland has blown 20% of GDP to bailout the bankers. Lucky people are the bankers it appears we cannot do without them.

And if GDP keeps contracting the bailout cost as a ratio to GDP keeps increasing. Still without bankers we can't have economic growth.

Ireland probably carried out one of the most costly and comprehensive bankster bailouts anywhere in the World.

However, when its fiscal woes are reported in the media the finger is typically pointed at the 'austerity measures' (forced upon the people by the need to save the banker's bonuses) as being the culprit for the sinking economy - rather than the fact that saving the fraudsters in the Irish banking industry has broken the back of the country.

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Ireland probably carried out one of the most costly and comprehensive bankster bailouts anywhere in the World.

However, when its fiscal woes are reported in the media the finger is typically pointed at the 'austerity measures' (forced upon the people by the need to save the banker's bonuses) as being the culprit for the sinking economy - rather than the fact that saving the fraudsters in the Irish banking industry has broken the back of the country.

It really has taken the country down.

You may agree with the need to bail out the banks... but to take down the whole countrys economy, it's just mental... it beggars belief.

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Another one of the PIIGS is wobbl;ing again today--I have a feeling October will be a bearfest.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8028737/OECD-calls-for-more-austerity-in-Portugal.html

OECD calls for more austerity in Portugal

Portugal must brace for fresh austerity to bring the budget deficit under control and stem capital flight, despite signs that political consensus is unravelling.

By Ambrose "Ambers" Evans-Pritchard

Published: 6:00AM BST 28 Sep 2010

476,567 Comments

Three ex-finance ministers fear Lisbon may have to tap the EU bail-out fund. The OECD club of
rich states
*urged the country to extend its public wage freeze until 2013 and prepare to raise taxes "swiftly" on sales and property.

*Most heavily indebted--too big to fail---states.

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I can't see a way to return to sustained growth for Ireland, Greece, Spain,or Portugal in the monetary straight jacket of the single currency.

The German economy will keep improving as their main European trading partners have no currency defence against their wages structures and productivity.

The structural issues in the Eurozone have not been addressed and most European leader seem to be completely unaware there is even a problem.

I expect these economies to be back in recession by Q4 and once the bailout cash runs out they will have to find a real solution to structural problems of the Eurozone.

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I can't see a way to return to sustained growth for Ireland, Greece, Spain,or Portugal in the monetary straight jacket of the single currency.

The German economy will keep improving as their main European trading partners have no currency defence against their wages structures and productivity.

The structural issues in the Eurozone have not been addressed and most European leader seem to be completely unaware there is even a problem.

I expect these economies to be back in recession by Q4 and once the bailout cash runs out they will have to find a real solution to structural problems of the Eurozone.

The structural problem is the Eurozone.

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Surely it is only a matter of time before Ireland walks away from the Euro and re-introduces the punt? :unsure:

Very Long term it would make sense, they are an export based economy and no doubt the punt would sink by about 50% against the Euro on introduction. Problem would be all the euro denominated contracts, loans, bonds etc. There would have to be capital controls whilst this was done to prevent the biggest bank run in history as depositors transferred money to other Eurozone countries.

They could default on everything, Wright it all off. Probably would not make them to popular with the rest of the Eurozone / EU. Yields for all the periphery countries would rocket and they would probably end up defaulting as well. They could be slung out of the EU?

The Eurozone would collapse and the resulting financial crisis would make the credit crunch look like a picnic.

I think the only realistic long term solution is for Germany / Holland and maybe France to withdraw to thier own currencies or a euro mark 2.

The old euro would crash and the countries in it would start to recover.

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Indeed. In fact it was an entire 'property developer-banking-political' cabal that was bailed out.

A sort of politically corrupted 'military-industrial' complex for the 21st Century.

Incredible.

Not really incredible when you know how corrupt Irish politics is.

The sad thing is that the electorate haven't taken direct action to avoid those in government screwing them over. But then that's a large part of why Irish politics got in such a sad state in the first place - voter stupidity/ apathy/ acquiescence towards openly corrupt politicians. In Ireland, it's long been considered morally right to 'screw the system' for personal benefit and politicians who work it to enrich themselves are seen as 'cute hoors' ( Wiktionary - cute hoor ) and to be admired ... <_< Guess the electorate got what they deserved.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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