Tuesday, November 16, 2010

Ireland: It's All Bad News

A man gets a call from his doctor, who asks whether he wants to hear the good or the bad news first: "The good news is that you have 24 hours to live." "Jeez, doc, what's the bad news?" "I should have called you 24 hours ago." The doc, in the case of the critically ill Irish economy, is not the financial media that have been reporting that it is only a matter of time before an EU bailout. Irish ministers called these reports "dangerous fiction". Brian Cowen, the prime minister, let it be known that he was furious. The cabinet stuck to the line yesterday that they can get through on financial aspirins until next June. But media reports are not the problem, and certainly not the reason why the credibility of ministerial statements on this issue is now so low.
The doc is the European Central Bank, which has already spent €90bn keeping Irish financial institutions afloat. The ECB vice-president, Vitor Const├óncio, clearly wants Ireland to use the fund set up after the Greek collapse, the European Financial Stability Facility (EFSF), sooner rather than later. The governor of the Bank of Spain piled more pressure on Ireland yesterday. Nor was he a disinterested spectator. Though Ireland is out of the bond markets and does not have to go back until it runs out of cash next year, Spain and Portugal both need those markets to fund their debts. While Greece and Ireland are the first victims of the sovereign debt crisis in the eurozone, the deeper fear of the ECB is that an economy the size of Spain or Italy will follow. That would really test their ability to underwrite banking failure.
More Here..

3 comments:

  1. Just as I was saying all along. Gold is a bubble that's going to go pop!!

    http://www.washingtonsblog.com/2010/11/is-gold-in-bubble-and-if-so-how-much.html

    Every investment opportunity from here on out is going to be a bubble that goes pop. That's what happens when you have too much money concentrated in the hands of too few people who are using it to try and draw blood out of stones.

    ReplyDelete
  2. I have taken a long postition in guns and canned goods. I have my bomb shelter and bunker well stocked with food, water, medicinals, Bibles and an excellent arsenal of myriad firearms and weapons.

    There is a "light at the end of the tunnel". It is a speeding locomotive coming at us all at 70 miles per hour.

    Pray the Pslams, buy gold and Trust in God!

    ReplyDelete
  3. It is not Ireland that the banksters want to help .
    Their aim is to turn Ireland into a nation of Debt Peons with future generations paying off the losses bubble economy that the banksters set up and profited from.
    the Irish should "Just say No" to the additional debts disguised as a "friendly" bailout loan for their own benifit ,that the banksters are attempting to shove down their throats

    As mish says @
    http://globaleconomicanalysis.blogspot.com/
    ‘In case you were wondering about why there is intense pressure on Ireland to accept a bailout from the EU and the IMF, look no further than the fact that European banks have $650 billion Exposure to Ireland….”..

    “Rat's Ass Perspective

    The other countries in the EU do not give a rat's ass about Ireland. All they really cares about is $650 billion in loans on the books of UK, German, French, Italian, and Spanish banks.

    The US is of course the third most interested party and will no doubt apply pressure on the IMF to apply pressure on Ireland to accept some sort of bailout.

    Ireland is sitting on a pile of cash. That cash will last much longer if Ireland defaults and that I believe is just what Ireland should do.

    The IMF may be prepared to "Help" but I repeatedly ask and answer whether or not it can do any such thing in IMF Ready to "Help" Ireland; Can the IMF "Help" Anyone?

    The short answer is for Ireland to tell the EU and IMF to "Stuff It".

    Every country for itself. There is simply no reason for Irish citizens to bailout UK, German, French, and US banks….

    ReplyDelete

Everyone is encouraged to participate with civilized comments.