European Stability Fund Has No Funds : EFSF, ESM and Eurobond Discussions

[ang]

Update -

INDEPENDENT TD Thomas Pringle is to seek an injunction restraining the government completing ratification here early next month of the European Stability Mechanism (ESM) Treaty providing for a conditional permanent bailout fund for the 17 states in the Eurozone.

Mr Pringle will apply for the injunction once the relevant legislation is passed, as expected, by the Dail and Seanad within the next eight to ten days but before it goes to the President to be signed into law, his counsel John Rogers SC told then High Court today.

http://www.independent.ie/national-n...y-3146223.html

[ang]

We here in Ireland are told we have NO bargaining power and we can't "blackmail" our partners......

Bruno Waterfield

FTT, Fekter says 'if I don't get support of 9 (for enhnaced coop) ESM will not be ratified in Austria' - and goodbye euro

[C. Flower]

The ESM still has no funds, and the Euro Conference proposals are that it should directly refinance the banks. Gilmore says that this will be applied retrospectively to Irish debt.
This, if it happened, would transfer an enormous amount of debt to the banking system. Much of the Irish system is effectively nationalised.

Who would pay it back and how, and where will the ESM funding come from in the first place ? - the fund can't print money.

This transfer of debt from GDP to the banks might just possibly reduce Irish Government borrowing costs, but it is hard to see why, as the Sovereign has guaranteed all bank debts.

Another sticking plaster / fudge ?

[C. Flower]

Point being made on RTE (John Murray Show)now - that all these loans to the banks will be paid back by us.

Capitalisation of banks is usually a gift in return for equity - but the ESM would provide loans and would want the money back.

[Baron von Biffo]

ESM and linked matters being discussed on Plank now. Myles Dungan at the mic so less barracking of anyone who makes unwelcome points.

Panel has both Kieran Allen and Mary Lou so the drone level is through the roof.

[fluffybiscuits]

ESM and linked matters being discussed on Plank now. Myles Dungan at the mic so less barracking of anyone who makes unwelcome points.

Panel has both Kieran Allen and Mary Lou so the drone level is through the roof.

Mary Loo....

[Baron von Biffo]

Mary Loo....

We toil eternally to avoid that sort of thing

[DCon]

Zerohedge outlining some problems with the deal nua

We will not dwell much on the fact that the ESM has yet to be ratified by the paying countries, that the ESM will now have to be scrapped in its current format, and resigned by all 17 member countries since the seniority provision is somehow scrapped: an event that amounts to a cramdown exchange offer, that while everyone is talking about the uses of funds, nobody has uttered a peep about the sources, that Germany has yet to say what the German conditions will be or whether the revised deal will even pass the Bundestag, that the deal is contingent on the formation of a "effective single supervisory mechanism is established, involving the ECB" which in Europe is next to impossible, and that finally the whole "arrangement" is nothing but an Memorandum of Understanding - the weakest form of non-binding agreement possible. Which is why we are just a little skeptical and that today's E-Tarp is merely the latest catalyst to be faded.

http://www.zerohedge.com/news/latest...-monday-levels

[DCon]

As a reminder



http://www.zerohedge.com/news/last-n...-bailout-funds

CNBC have been speculating that the ESM will be given a banking licence so they can get freshly minted money directly from the ECB

[C. Flower]

As a reminder



http://www.zerohedge.com/news/last-n...-bailout-funds

CNBC have been speculating that the ESM will be given a banking licence so they can get freshly minted money directly from the ECB

The Morticia Option ?

I think that Germany is light years away from agreeing to it.

All the other actions that we are seeing are just movements of deckchairs on the deck of the Titanic.

[fluffybiscuits]

http://www.thejournal.ie/explainer-e...03962-Jun2012/

Decent explanation there

[ang]

German Constitutional Court has announced ESM hearing to be held on June July 10th

[Baron von Biffo]

German Constitutional Court has announced ESM hearing to be held on June 10th

July perhaps?

[ang]

July perhaps?

Thank You Baron You are correct.

[PaddyJoe]

German Constitutional Court has announced ESM hearing to be held on June July 10th

That's the day after the ESM is supposed to formally become operational!