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gruffydd

Fitch Downgrades Ireland's Ratings

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http://www.bloomberg.com/news/2010-10-06/ireland-sovereign-debt-rating-cut-one-level-by-fitch-outlook-is-negative.html

Fitch Downgrades Ireland's Rating on Cost of Banking Bailout

Fitch Ratings lowered Ireland’s credit grade to the lowest of any of the major rating companies and said there’s a risk of a further reduction.

Ireland was cut to A+ from AA-, reflecting the “exceptional and greater-than-expected cost” of the nation’s bailout of its banking system, Fitch said in a statement today.

The move comes a day after Moody’s Investors Service said the country’s rating may be cut. Ireland said last week the cost of repairing its financial system may rise to as much as 50 billion euros ($69 billion), pushing its budget deficit this year to a record 32 percent of gross domestic product.

Fitch said the rating “could be downgraded further if the economy stagnates and broad-based political support for and implementation of budgetary consolidation weakens.”

The euro fell 0.3 percent against the dollar after the rating cut and traded at $1.3821 as of 12:11 p.m., compared with $1.3839 yesterday. Irish bonds pared their advance and credit- default swaps linked to Irish government debt rose 9 basis points to 446, according to data provider CMA.

The yield spread between Irish 10-year debt and that of Germany, Europe’s benchmark, was at 414 basis points today after widening to a record 454 basis points on Sept. 29. The government last month canceled bond auctions in October and November, saying the state is fully funded through the first half of 2011.

Irish consumer confidence plunged the most in more than four years last month as the mounting burden of bailing out Anglo Irish Bank Corp. and surging sovereign borrowing costs sparked a “great panic,” a report today showed.

“Ireland has experienced a great panic,” said Austin Hughes, chief economist at KBC Ireland. There is a “risk that a sense of apocalyptic gloom may trigger a freeze in spending.”

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This will obviously increase their cost of borrowing which is just what they need right now. Really am concerned about how this is going to play out long term.

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Going back on what I've said before, perhaps Ireland really could see a revolution. Extreme anger.

A revolution you say? I thought that they were now independent. Are they saying that self-rule isnt as good as direct rule by the English?

It is a very dangerous thinking dispensing with English rule. No nation is more enlightened or wise when it comes to Government. Which makes me wonder, why did the English allow themselves to be ruled by the Scottish mafia for so long recently?

Rule by the English, if you are lucky enough to have it, never give it up.

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A revolution you say? I thought that they were now independent. Are they saying that self-rule isnt as good as direct rule by the English?

It is a very dangerous thinking dispensing with English rule. No nation is more enlightened or wise when it comes to Government. Which makes me wonder, why did the English allow themselves to be ruled by the Scottish mafia for so long recently?

Rule by the English, if you are lucky enough to have it, never give it up.

Anglo-American economists and politicians created this mess. Let's not forget that. Ever heard of the big bang, ever wondered what exactly the City has been growing fat on these last few years? British banks pumped 250 billions of loans into Ireland.

Their government ended up being totally corrupted by the property and banking industry, and the thinking of Thatcher, Reagan, Friedman, etc., and their hangers on.

Direct rule from England was a disaster - tariffs and protection killed off Irish industry that competed with British home industries. Some of my family were in Irish textiles in the 19th C - most were forced to emigrate. Then we had rapacious landlordism too - great! Thanks so much.

Edited by gruffydd

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Going back on what I've said before, perhaps Ireland really could see a revolution. Extreme anger.

This will obviously increase their cost of borrowing which is just what they need right now. Really am concerned about how this is going to play out long term.

To see how it will play out please see Iceland.

No revolution, just a crash in living standards.

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Money and grog its the Celtic curse.

Giving money to the Irish, is like giving razer blades to monkeys!

You know you should not.

But you do it because you want to see what happens.

:rolleyes:

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A revolution you say? I thought that they were now independent. Are they saying that self-rule isnt as good as direct rule by the English?

It is a very dangerous thinking dispensing with English rule. No nation is more enlightened or wise when it comes to Government. Which makes me wonder, why did the English allow themselves to be ruled by the Scottish mafia for so long recently?

Rule by the English, if you are lucky enough to have it, never give it up.

I trust this is a poor attempt at irony...

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Anglo-American economists and politicians created this mess. Let's not forget that. Ever heard of the big bang, ever wondered what exactly the City has been growing fat on these last few years? British banks pumped 250 billions of loans into Ireland.

Their government ended up being totally corrupted by the property and banking industry, and the thinking of Thatcher, Reagan, Friedman, etc., and their hangers on.

Direct rule from England was a disaster - tariffs and protection killed off Irish industry that competed with British home industries. Some of my family were in Irish textiles in the 19th C - most were forced to emigrate. Then we had rapacious landlordism too - great! Thanks so much.

We had an Irish Prime Minister once. And what did he ever do of note?

Well, apart from defeating the monster Napoloeon, he didnt do much.

Excluding his enlightened Firm but Fair rule as Prime Minister.

OK, so he helped conquer much of India, which provided Britain with so much of its wealth for the next 130 years.

There was little else good to say about him, apart from his contribution to peace with Europe for the next 100 years.

What a waster.

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Ouch deficit at 32% of gdp for this year! Remember in the old days back in 2009 when many even on this forum were shocked to see nations running deficits of 12% of gdp?

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Money and grog its the Celtic curse.

Giving money to the Irish, is like giving razer blades to monkeys!

You know you should not.

But you do it because you want to see what happens.

:rolleyes:

What a wonderfully enlightening reply. It ill behoves you blueskies to descend to Colonel Blimp casual racism. After all we never had easy money dished out by morons in the UK. No nation was immune from the stupidity and rank greed of the property pushers. Nationality or race is not the issue but greed, pure and a simple. It's not as if the British government covered itself in economic glory in recent times. Having lived in Ireland during the bubble I can say, as with the UK, that there was a minority actively engaged in fighting the excesses of the property pushers. Sadly as in Britain, they were shouted down.

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What a wonderfully enlightening reply. It ill behoves you blueskies to descend to Colonel Blimp casual racism. After all we never had easy money dished out by morons in the UK. No nation was immune from the stupidity and rank greed of the property pushers. Nationality or race is not the issue but greed, pure and a simple. It's not as if the British government covered itself in economic glory in recent times. Having lived in Ireland during the bubble I can say, as with the UK, that there was a minority actively engaged in fighting the excesses of the property pushers. Sadly as in Britain, they were shouted down.

I'm half expecting someone to post a cartoon from Punch next :ph34r: Thank god the sun's finally set on that shitty empire!

Edited by gruffydd

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I'm half expecting someone to post a cartoon from Punch next :ph34r: Thank god the sun's finally set on that shitty empire!

In fairness I wouldn't mind fianna fail being depicted as apes. In fact financial analysts made chimpanzee sounds when Lenihan gave a conference call the other day.

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To see how it will play out please see Iceland.

No revolution, just a crash in living standards.

The icelanders are prosecuting their former prime minister for his role in the crisis- meanwhile here we still tug the forelock as the knights of banking pass by.

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A revolution you say? I thought that they were now independent. Are they saying that self-rule isnt as good as direct rule by the English?

It is a very dangerous thinking dispensing with English rule. No nation is more enlightened or wise when it comes to Government. Which makes me wonder, why did the English allow themselves to be ruled by the Scottish mafia for so long recently?

Rule by the English, if you are lucky enough to have it, never give it up.

You're kidding, right? We're in the deep brown stuff ourselves you know!

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We had an Irish Prime Minister once. And what did he ever do of note?

Well, apart from defeating the monster Napoloeon, he didnt do much.

Excluding his enlightened Firm but Fair rule as Prime Minister.

OK, so he helped conquer much of India, which provided Britain with so much of its wealth for the next 130 years.

There was little else good to say about him, apart from his contribution to peace with Europe for the next 100 years.

What a waster.

Are we talking about the guy who when told he was Irish because he was born in Dublin, replied, "A man who is born in a stable does not become a horse" or something like that?

He wasn't exactly very Irish.

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This will obviously increase their cost of borrowing which is just what they need right now. Really am concerned about how this is going to play out long term.

Possible the ECB may end up lending to them at their base rate.

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The icelanders are prosecuting their former prime minister for his role in the crisis- meanwhile here we still tug the forelock as the knights of banking pass by.

There was also minimal saving of the financial sector and a rapid response to diversifying the economy and bolstering other industries . . . (albeit cod, whales and jumper knitting) . . . while tearing up international agreements, disputing the banks international debts and restricting capital flight.

And while there was no extreme violence, there were daily vigils in Reykyavik . . . which didn't go unnoticed.

That's a big contrast to bailing out the banks at all costs and letting the rest of the country go hang.

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  • 146 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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