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

[ang]

Its absolutely amazing that Minister Noonan at lightening speed can tell us that it was mostly foreign investors who bought these bonds yet it seems to be impossible for the same Minister to find out who he signs the cheque to regarding Anglo bonds.

I wonder which "foreign banks" were ordered to buy Irish bonds to prove austerity bailouts work and must be continued hmmmmm.......

[MPB]

This is further proof that we are being Governed by a load of idiots.

Why the hell, would a Govt who have told us that we will get a reduction in our 70 billion private bank debt in October, go and borrow 5 billion at the ridiculous premium of 6%?

Either they are lying about the possibility of a reduction in the debt or they are the stupidist idiots ever to wear shoe leather.

[Baron von Biffo]

I wonder which "foreign banks" were ordered to buy Irish bonds to prove austerity bailouts work and must be continued hmmmmm.......

If we didn't know better, suspicion that you're a cynic might creep in Ang.

[ang]

If we didn't know better, suspicion that you're a cynic might creep in Ang.

I know you know Baron

TBH Baron I really don't want to knock anything positive but borrowing at these unsustainable rates is not much of a positive even the set of bonds we swapped today came in at higher interest rates I just see continual can kicking I'm afraid.

It will be good to get out of the bailout programme but not at any price.

[PaddyJoe]

Also interesting to consider that this 5 billion would cost around 3% from the EFSF and associated bailout funds at the moment. We're paying 6% for this.

[MPB]

Also interesting to consider that this 5 billion would cost around 3% from the EFSF and associated bailout funds at the moment. We're paying 6% for this.

That 3% comes with terms and conditions.

Not very nice ones.

The stupidity of accepting these terms and conditions and repaying 70 billion of private bank debt is only matched by the stupidity of borrowing at a 6% premium 3 months before you were expected to have 70 billion wiped off your national debt and therefore at least 2% off your interest rate.

Stupid.

[PaddyJoe]

It makes me wonder if there's another black hole just about to open up in the banks that hasn't been accounted for?
The other possibility is that the DOF is trying to put together some kind of back up plan for a Euro collapse.

[ang]

Namawinelake putting the bond buying escapade in context

Well money talks and bullsh*t walks and we are paying unsustainable rates which cost us €800m more than ESM.

[C. Flower]

It makes me wonder if there's another black hole just about to open up in the banks that hasn't been accounted for?
The other possibility is that the DOF is trying to put together some kind of back up plan for a Euro collapse.

This was suggested on the VB Browne show tonight, in what was quite an interesting discussion.

Last chance saloon and all that.

[PaddyJoe]

This was suggested on the VB Browne show tonight, in what was quite an interesting discussion.

Last chance saloon and all that.

In the event of a messy EZ breakup that five billion or so could be Ireland's "running away money"
Wouldn't get very far of course..

[MPB]

Namawinelake putting the bond buying escapade in context

Why would we go to the markets to borrow 3 months before we expect to get our national debt written down?

Why would we not wait for the inevitable reduction in interest rates this would bring?

Our new Sec Gen in Finance seemed delighted. This has me worried about whether he is Moran or Moron.

[barrym]

May I make an observation?

This is undoubtedly an optic. We are touting ourselves as the good lads, in reality nobody cares an f what we do, we don't count, at the level of decisonmaking.

We are trying to suck up to banks, to bolster our 'reputation' ffs.

This am on Morning I they had a gobsh1te from Danske or somewhere saying it was so that the €8b we owe in Jan 2014 will be prefunded. Imagine....at 6+% he's laughing, they'll get several squillions in interest BEFORE that money is due to be repaid.......

When the Spanish and Italians are blocked from the markets (September time?) then we'll be blocked too.

[ang]

Why would we go to the markets to borrow 3 months before we expect to get our national debt written down?

Why would we not wait for the inevitable reduction in interest rates this would bring?

Our new Sec Gen in Finance seemed delighted. This has me worried about whether he is Moran or Moron.

Ah but its all part of the EndAgenda, get the fools to vote yes to fiscal compact so as to guarantee "cheaper funding" from ESM then go to the markets borrow at double the rate and contribute €11BN+ to the ESM to bailout everybody else.

Remember Ireland will pay its way.

Its the kind of agenda that will ensure Ireland defaults I just can't help wondering who would lend to a Country with such a high chance of defaulting.

[C. Flower]

May I make an observation?

This is undoubtedly an optic. We are touting ourselves as the good lads, in reality nobody cares an f what we do, we don't count, at the level of decisonmaking.

We are trying to suck up to banks, to bolster our 'reputation' ffs.

This am on Morning I they had a gobsh1te from Danske or somewhere saying it was so that the €8b we owe in Jan 2014 will be prefunded. Imagine....at 6+% he's laughing, they'll get several squillions in interest BEFORE that money is due to be repaid.......

When the Spanish and Italians are blocked from the markets (September time?) then we'll be blocked too.

That also is part of the answer to why we borrowed.

The NTMA played a blinder in prefunding back before the "bailout" ECB/ EU/IMF forced us into the Programme. It was an opportunity missed that we didn't go the Morgan Kelly route, burn all and sundry, tax the rich and balance the books.

[riposte]

It was an opportunity missed that we didn't go the Morgan Kelly route, burn all and sundry, tax the rich and balance the books.

But there's more than one "we" Cactus