Irish Bonds and the ECB - Bond Sales Watch - the Risk of Sovereign Default

[BrendanGalway]

Oh yes there are choices but none of our politicians are prepared to even consider them.

That leaves us without any say in how this crisis should be dealt with.

The Eu have just done a Lenny and guaranteed all our debts on the back of the already bank burdened Irish taxpayer.
Years of austerity await us.

No matter about there being other choices, they are not being offered to the people, our masters have spoken.

Agreed 100%. This would be my reading of it too. Nothing new in any of this of course, Europe operated like this for Centuries. Its just a bit quieter now. No Mounted Cavalry deployed or High Castles built, its all done through the Magic of the Markets.

Life is not much fun so far this Century.

[C. Flower]

Ireland 10 year bond yield down to 8.20%. Insiders say EU loan/"bailout" for Ireland imminent, via @_politicalworld http://bit.ly/aXL3DF

[TotalMayhem]

Ireland 10 year bond yield down to 8.20%.

No surprise, if you as a lender wish to compte with loans at 6.5% interest from the IMF, you'd better offer lower rates than that.

[TotalMayhem]

McWilliams was asked this morning if he would go into Politics

He said he would love to serve his country but he could not be a Politician under the current system. He said he would want to design policy, not talk to constituents about their potholes.

Screw McWilliams and his 'design', at least he admits that doesn't give a damn about the sorrows of the people he'd love so much to "serve".

It's alright folks.

Eamon Ryan says that "we" will get the budget through and this will bring borrowing costs down.

Eamon would know.

[C. Flower]

Cowen has categorically denied that he is talking to anyone about an EFSF loan. Perhaps it's going on behind his back.

The economists certainly don't have the answers, I agree, Total Mayhem.

[Ah Well]

Cowen has categorically denied that he is talking to anyone about an EFSF loan. Perhaps it's going on behind his back.

The economists certainly don't have the answers, I agree, Total Mayhem.

Just to be certain .... if and when a bailout is sought ...is it the ESF who are getting involved or the IMF or is the finance to be a combination to be secured from both.

One hears about the IMF one minute and about the ESF the next and it gets rather confusing ...

[Ah Well]

Hang on ... if this is correct then the IMF won't probably be getting involved at all ...

When it was agreed last May in the wake of the Greek debt crisis the fund broke down as follows: €60bn from EU funds; €440bn from a new special purpose vehicle, based in Luxembourg, which would allow the vehicle to borrow money on the international markets based on guarantees provided by EU member states; and finally, up to €250 billion from the International Monetary Fund.

In particular, RTÉ News understands, the technical discussions have looked at the possibility of Ireland - should it need help - accessing funds only from the first component; the €60bn from EU funds.

http://www.rte.ie/news/2010/1112/economy.html

[ang]

It would seem to look that way Ah Well.

Another report here from bloomberg:-

Irish Prime Minister Brian Cowen said he is working with fellow European leaders as his nation’s sovereign debt crisis threatens the stability of European markets.

While reiterating that his debt-strapped country has not sought to tap an EU rescue fund, Cowen told reporters today that “there are issues affecting the wider euro area of which we are a member” and that he and his counterparts were working to “ensure that the bond markets respond positively to the euro.”

http://www.bloomberg.com/news/2010-1...ns-region.html

It's all about the Euro and the IMF may not necessarily deem the Euro as the most important component in an Irish bailout.

[Ah Well]

It would seem to look that way Ah Well.

Another report here from bloomberg:-



http://www.bloomberg.com/news/2010-1...ns-region.html

It's all about the Euro and the IMF may not necessarily deem the Euro as the most important component in an Irish bailout.

The EU want to keep the mess that is Ireland within its own ambit and have control over it/us, not the IMF. That's the way I would have thought it would be panning out originally and that's the way it seems to be going now. Subject of course to the necessary amount of funds being there and accessible from Europe if and when we need them ...

First the Irish Referendums re Lisbon "pacification" and now potential bailout of the place. I bet they're sorry Ireland is in the EU at this point (tho obviously won't say that)

[Graham]

The EU want to keep the mess that is Ireland within its own ambit and have control over it/us, not the IMF. That's the way I would have thought it would be panning out originally and that's the way it seems to be going now. Subject of course to the necessary amount of funds being there and accessible from Europe if and when we need them ...

First the Irish Referendums re Lisbon "pacification" and now potential bailout of the place. I bet they're sorry Ireland is in the EU at this point (tho obviously won't say that)

So now the IMF are the good guys and the EU are the bad guys?

I'm confused.

[Apjp]

Cowen has categorically denied that he is talking to anyone about an EFSF loan. Perhaps it's going on behind his back.

The economists certainly don't have the answers, I agree, Total Mayhem.

Dont they? I would not be so dismissive. Not all economists were or are govt yesmen. many want our economy to be sustainable and self sufficient as possible with a skilled workforce.

[Ah Well]

So now the IMF are the good guys and the EU are the bad guys?

I'm confused.

Nah .... we're gonna suffer whoever bails us out

Prob better off under the thumb of the EU tbh .... seeing as that experience is already alive and well, just going to get a bit more intense

[Apjp]

The EU want to keep the mess that is Ireland within its own ambit and have control over it/us, not the IMF. That's the way I would have thought it would be panning out originally and that's the way it seems to be going now. Subject of course to the necessary amount of funds being there and accessible from Europe if and when we need them ...

First the Irish Referendums re Lisbon "pacification" and now potential bailout of the place. I bet they're sorry Ireland is in the EU at this point (tho obviously won't say that)

would the imf possibly let us keep the corporation tax at the cost of everything else-is that why? i heard a rumour they might even advise a break away currency for ireland.

[Ah Well]

would the imf possibly let us keep the corporation tax at the cost of everything else-is that why? i heard a rumour they might even advise a break away currency for ireland.

No-one knows for sure I'd imagine.

I would be very concerned if our Corp Tax rate was changed with a flight of FDIs out of the place. Love or loathe 'em they are very important as of now to the country and a reduction or indeed a mass exodus would be disastrous

[Apjp]

yeah ah well, i made that point in another thread too..slim buddha and another poster want it gone-they say they realize it is FDI, but you cannot lose it or we have almost no private sector.