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Realistbear

Ireland Have One Month Before They Will Have To Be Bailed Out

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http://www.bloomberg.com/news/2010-11-02/ireland-may-have-just-one-month-to-stave-off-bailout-danger-euro-credit.html

By Dara Doyle - Nov 2, 2010 12:01 AM GMT Tweet (Irish Finance Minister Brian Lenihan may have just one month to stave off an international bailout.
The extra yield that investors demand to hold Irish 10-year bonds over German bunds surged to a record yesterday as Lenihan tries to put together a 2011 budget by Dec. 7 that convinces investors he can get the country’s finances in order.
“The behavior of international bond markets suggests the government’s various announcements haven’t convinced markets that we are on a credible, stable path,” said Karl Whelan, an economics professor at University College Dublin and a former economist at the Federal Reserve. “The budget is going to be crucial in determining if we can change that attitude.”
The premium on Irish bonds has doubled since August and is now wider than the spread on Greek debt four days before it sought a European Union-led bailout in April. That’s putting pressure on Lenihan to cut the deficit and overcome both an economic slump and the rising cost of bailing out the country’s banks.

IMO the entire sovereign debt crisis passed away too easily, too quickly and without repercussions comensurate with the level of debt created. I am just not convinced that the recovereh is locked in either in the EZ or here in the UK.

Edited by Realistbear

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The sums involved with Greece, Portugal and Ireland are just too small to derail the European economy let alone the world economy. China could buy a PIG for petty cash. This why the large countries in Europe will hang them out to dry they do not care if Ireland, Greece and Portugal are in recession for the next 20 years or even cease to exist. Spain at least has a negotiating position and would be heard.

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The sums involved with Greece, Portugal and Ireland are just too small to derail the European economy let alone the world economy. China could buy a PIG for petty cash. This why the large countries in Europe will hang them out to dry they do not care if Ireland, Greece and Portugal are in recession for the next 20 years or even cease to exist. Spain at least has a negotiating position and would be heard.

They could easily derail the German, French and British banks that are loaded to the gunnels with PIG debt, though! And we can't forget that the EU bailout fund itself is funded by... hitherto triple AAA sovereigns issuing more debt. The snake is devouring itself.

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http://www.bloomberg.com/news/2010-11-02/ireland-may-have-just-one-month-to-stave-off-bailout-danger-euro-credit.html

By Dara Doyle - Nov 2, 2010 12:01 AM GMT Tweet (Irish Finance Minister Brian Lenihan may have just one month to stave off an international bailout.
The extra yield that investors demand to hold Irish 10-year bonds over German bunds surged to a record yesterday as Lenihan tries to put together a 2011 budget by Dec. 7 that convinces investors he can get the country’s finances in order.
“The behavior of international bond markets suggests the government’s various announcements haven’t convinced markets that we are on a credible, stable path,” said Karl Whelan, an economics professor at University College Dublin and a former economist at the Federal Reserve. “The budget is going to be crucial in determining if we can change that attitude.”
The premium on Irish bonds has doubled since August and is now wider than the spread on Greek debt four days before it sought a European Union-led bailout in April. That’s putting pressure on Lenihan to cut the deficit and overcome both an economic slump and the rising cost of bailing out the country’s banks.

IMO the entire sovereign debt crisis passed away too easily, too quickly and without repercussions comensurate with the level of debt created. I am just not convinced that the recovereh is locked in either in the EZ or here in the UK.

The sovereign debt crisis hasn't even begun yet....

(I like the green, nice touch)

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  • 152 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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