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Realistbear

Ireland At Destructive Tipping Point As Another Credit Downgrade Looms

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http://finance.yahoo.com/news/SP-warning-deepens-Irish-rb-3249414867.html?x=0&sec=topStories&pos=4&asset=&ccode=

Ireland at destructive tipping point

S&P warning deepens Irish political and fiscal crisis

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On Tuesday September 28, 2010, 4:46 am EDT

By Andras Gergely

DUBLIN (Reuters) - Standard & Poor's warned on Tuesday it may cut Ireland's credit rating again due to the rising cost of recapitalizing nationalized Anglo Irish Bank, pushing Dublin's borrowing costs to fresh peaks.

Ireland is battling to convince investors it can afford to prop up its ailing banking sector and cut the biggest budget deficit in the European Union in the face of a faltering economy and growing risks of a political crisis.

So far it appears to be losing the argument.

It does not seem to be contained either in the EZ or the West in general. It may have begun in America as whatsisname said but it surely did not remain there. Euros anyone?

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I have an idea. Why not just prosecute the ratings agencies for fraud and corruption? After all, within a very short time the CDOs and the like to which they gave a high rating (and for which they were paid large sums by the owners of said instruments) were less than worthless.

The ratings agencies bear a heavy responsibility for the crisis.

Edited by 1929crash

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An S&P analyst said in an interview broadcast on Tuesday that the agency's estimate that Ireland would have to pour 35bn (£29.6bn) into Anglo Irish, the nationalised bank, looked increasingly realistic and any amount beyond that could trigger rating downgrades.

The 25bn of aid earmarked for Anglo Irish so far would already push Ireland's 2010 budget deficit to around 25pc of gross domestic product, compared with an EU limit of 3pc that Dublin aims to reach by 2014.

Looks like Ireland are due for a bail out. Fancy, 25% of GDP. We are in much better shape with only 62%* of GDP. Hang on......

___________________

http://www.financemarkets.co.uk/2010/04/22/uk-budget-deficit-races-away/

* With the deficit is at its highest since the Second World War and total government debt now at £890 billion (or 62% of GDP) all eyes are on the prospects for economic growth as an alternative to savage public spending cuts.

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The 25bn of aid earmarked for Anglo Irish so far would already push Ireland's 2010 budget deficit to around 25pc of gross domestic product, compared with an EU limit of 3pc that Dublin aims to reach by 2014.

Looks like Ireland are due for a bail out. Fancy, 25% of GDP. We are in much better shape with only 62%* of GDP. Hang on......

Slow down Mr Bear, you are mistaking a huge anual defecit for total national debt.

Edited by Laughing Gnome

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Slow down Mr Bear, you are mistaking a huge anual defecit for total national debt.

Quite right--annual is "only" 11.6% or slightly higher than the prudent limit set by the EU

The annual budget deficit for 2010 reached £163.4bn or 11.6 per cent of GDP, the worst annual deficit since World War Two. In the last Budget, former Chancellor Alistair Darling said the deficit would be cut to 5.2 per cent of GDP in 2013-14.

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An S&P analyst said in an interview broadcast on Tuesday that the agency's estimate that Ireland would have to pour 35bn (£29.6bn) into Anglo Irish, the nationalised bank, looked increasingly realistic and any amount beyond that could trigger rating downgrades.

Why don't ther just let the f***ing bank die, die, die? <_<

Looks like Ireland are due for a bail out.

No, it looks like Anglo-Irish Bank are due for a bailout. :angry:

Edited by 1929crash

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  • 145 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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