From City AM:
D-Day for Ireland as yields rise
THE full cost of the 2008 banking crisis in Ireland will be laid bare today with the republic’s government expected to admit that bailing out Anglo Irish Bank will exceed €35bn (£30.2bn) – more than 20 per cent of Ireland’s GDP.
Ahead of today’s announcement, detailing the extent of a fresh recapitalisation, embattled Irish Prime Minister, Brian Cowen, yesterday conceded that Ireland had no choice but to act.
"Any [Anglo Irish Bank] failure would bring down the sovereign," he said...
Ireland’s cost of borrowing, which reached a record high of close to 6.8 per cent on Tuesday, was again at near-record levels yesterday.
But the Lawyers are Happy
3 hours ago
4 comments:
""Any [Anglo Irish Bank] failure would bring down the sovereign," he said..."
I flatly disagree with that. Ireland and its people will not be 'brought down' by the collapse of a bank. The Irish people will easliy figure out a way of working without it, and anyway the wreckage of AIB will be bought by someone (tesco's?) and carry on.
What will be 'brought down' is the incumbent government and political settlement. It will reveal to Ireland, and the Rest of the World, just how useless our political class is. And that's all that he (and our government ) is concerned about.
L, he was hamming it up a bit, wasn't he? I think politicians call this 'never let a good crisis go to waste'.
It´s a same sentence and again, and again. "We need much more money". The financial policy of European Union is a huge mistake in this year. They said "fresh recapitalisation". I ask them, what does it mean ? The main problem of bank´s crisis presents two important facts.
Firstly, speculative purchases caused a complete destabilization of market. And secondly, the circulation of real money is very slow.
This strategy of Anglo Irish Bank doesn´t deal with satisfaction of every interested subject.
JB, this is car crash stuff. It's the pinnacle of everything that Anglo-sphere economies have been building up to for ten years or more.
The banks get house prices to increase because that swells their balance sheets and their profits (and tricks the electorate into feeling wealthier) and when it all *pops*, the politicians increase taxes/cut spending on the little people in order to prop up house prices and bail out the banks.
Heads we lose, tails they win.
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