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Is The Ecb Forcing The Irish To Protect German Bondholders?

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Anglo-Irish Bank did not represent a systemic risk to the Irish economy, it wasn’t a high street bank like AIB or the Bank of Ireland. If it had been allowed to go the way of Lehmans the only losers would have been shareholders and bondholders. The Irish state stepped in and nationalised a bank that was basically run by crooks lending to property speculators. The Irish people are taking losses that should rightly have been shouldered by bondholders.

Every child in Ireland is being bequeathed a huge debt at birth to protect the interests of foreign, mainly German, bondholders – why? Guido was once a bond trader, it was always understood that sometimes the bond issuer defaults. That is the risk investors take.

So why is Dublin’s political establishment so keen to protect foreign investors at the expense of future generations? Guido has obtained the list of foreign Anglo-Irish bondholders as at the close of business tonight. These are the people whom Dublin’s politicians really seem to care about:

And the full list of bondholders the Irish are protecting can be found at Guido's website here:

http://order-order.com/2010/10/15/anglo-irish-bondholders-should-take-the-lossesis-the-ecb-forcing-ireland-to-protect-german-investments/

Between them they hold Anglo-Irish bonds with a face-value of €4,034,756,880. Shouldn’t they take the hit rather than future generations of Irish taxpayers? Capitalism is a system of profit and loss, they took the risk of investing in Anglo-Irish Bank. Is the Irish government under pressure from the European Central Bank in Frankfurt to protect German investors

So much for Irish neutrality during WWII.

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Between them they hold Anglo-Irish bonds with a face-value of €4,034,756,880. Shouldn’t they take the hit rather than future generations of Irish taxpayers? Capitalism is a system of profit and loss, they took the risk of investing in Anglo-Irish Bank. Is the Irish government under pressure from the European Central Bank in Frankfurt to protect German investors

The same thing is also happening in Greece. The Eurozone structure is flawed. I can't see how there can be a sustained recover in any of the periphery countries. They have too much debt, are uncompetitive. Where is the growth going to come from?

The situation will get worse and worse until the fundamental issues are addressed. These countries need to force a change as currently they are going to suffer considerably whilst Germany booms. Any sensible Irish politician would be formulating policy along these lines for the next election in / before 2012.

The only plausible solution is for some kind of Eurozone Split, that enables the outer countries to regain competitiveness.

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The same thing is also happening in Greece. The Eurozone structure is flawed. I can't see how there can be a sustained recover in any of the periphery countries. They have too much debt, are uncompetitive. Where is the growth going to come from?

The situation will get worse and worse until the fundamental issues are addressed. These countries need to force a change as currently they are going to suffer considerably whilst Germany booms. Any sensible Irish politician would be formulating policy along these lines for the next election in / before 2012.

The only plausible solution is for some kind of Eurozone Split, that enables the outer countries to regain competitiveness.

I dont think there is a plausible solution for Ireland now. If this bank had just gone bust that would have been a commercial failure, they happen. Now it is nationalised a failure will be seen as an Irish soverign default. This would destroy their ability to raise money from the bond markets, and they need to do a lot of that. Damned if they do and if they dont. My Irish friends have seen their future sold by a government who are run by a foreign power.

edit typo

Edited by Freeholder

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The list is not just German Banks - can someone show us how the bonds are allocated around the eurozone? Looks like everyone gets clobbered. Likewise the ECB are not just protecting German bond holders, they are protecting all European banks. That makes sense and is no different to the approach the FED are taking.

Freeholder makes the more sensible point: the Irish are fooked if they default on their bonds. Rates will rise to to teens making existing adjustable rates rise to in concert. What then? More morgtage defaults and foreclosures.

What is really needed on this board is sensible discussion about how to deal with the defaulters.

I dont think there is a plausible solution for Ireland now. If this bank had just gone bust that would have been a commercial failure, they happen. Now it is nationalised a failure will be seen as an Irish soverign default. This would destroy their ability to raise money from the bond markets, and they need to do a lot of that. Damned if they do and if they dont. My Irish friends have seen their future sold by a government who are run by a foreign power.

edit typo

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Likewise the ECB are not just protecting German bond holders, they are protecting all European banks. That makes sense and is no different to the approach the FED are taking.

So you acknowledge the failure of capitalism. :)

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So you acknowledge the failure of capitalism. :)

I don't see what using the power of the state to expropriate taxpayers money to save the creditors who foolishly lent money to a gang of crooks from the consequences of their actions has to do with capitalism.

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I don't see what using the power of the state to expropriate taxpayers money to save the creditors who foolishly lent money to a gang of crooks from the consequences of their actions has to do with capitalism.

+1 Beautifully put!

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What is really needed on this board is sensible discussion about how to deal with the defaulters.

Logically and morally, repo and forced sale of assets.

The Germans get all the greek roads and islands.

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Logically and morally, repo and forced sale of assets.

The Germans get all the greek roads and islands.

Watching them trying to be the new colonial power in Ireland should be worth a few quid for a front row seat.

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  • 238 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% +
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      • Even
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      • up 5%



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