Economy Rigging 1

BSK log, 30/09/10 September 30, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 11:48 am

MAIN ITEM:

The following idea *defining reality* seems most apt to highlight on the day that it all has turned out to be today.

What is that reality? All Irish banks are now owned by the irish taxpayer give or take a small %.

ITEM 1:

BY David McWilliams writes on the defining realities we are all now faced with today: WE MUST FACE REALITY – AND END BANK GUARANTEE | David McWilliams

ITEM 2:

BY Bloomberg writes on AIB next: Ireland Faces $68 Billion Bank Rescue to Prop Up Allied, Anglo – Bloomberg

 

BSK log, 29/09/10 September 29, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 4:36 pm

MAIN ITEM:

A must read on the 2nd anniversary of  *blanket guarantee*.

Katherine Barrington investigative article on ANGLO and ISLE OF MAN link: The curious tale of Anglo Irish Bank and its Austrian deposits | Journalist.ie

ITEM 1:

BY CONSTANTIN GURDGIEV – EXTERNAL BAILOUT LIKELY OPTION AS IRELAND TEETERS: External bailout seems likely option as Ireland teeters on brink of abyss | Irish Examiner

ITEM 2:

BY NPR – FEDERAL RESERVE FOR DUMMIES:  The Fed, Translated Into English : Planet Money : NPR

 

BSK log, 28/09/10 September 28, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 12:07 pm

MAIN ITEM:

The price for borrowing for Ireland hitting 6.99 % and its subsequent undermining of confidence and, also, the happenings on the ground level within Ireland. Particularly the money markets and realities contradicting the magical thinking bubble get rich quick school of economics holding onto *more of the same*, holding on for more quick riches for the future.

ITEM 1:

Here is an example of these economic incompatibilities underway, over to Peston:

‘..Of course, the great fear for the Irish government is that its putative virtue in making deep public spending cuts – and Mr Lenihan conceded that there are some big and painful decisions ahead – will further undermine confidence in the value of Irish assets, triggering further losses at banks, and thus eliminating the fiscal benefits of the deficit reduction programme.’

So to conclude from this possible eventuality the Irish taxpayer will see the price of borrowing going up even higher again potentially. A self perpetuating spiral upwards in the price of borrowing for the Irish state driven on by an entrenched over reliance on international credit and money lenders.

ITEM 2:

More on this from the WSJ:

{‘…Mr. Cowen and his Minister for Finance Brian Lenihan insist they are on track to deliver a budget deficit of 3% of GDP by 2014, as previously agreed with the European Commission.

Not so Mr. May. He worries that the rising cost of the bank bailout will finally take its toll:

“The recent run of disappointing news from Ireland means that public debt is looking increasingly likely to reach Greek proportions, suggesting that the Irish government may eventually be left with little choice but to restructure its debts.”

Mr. May has more comment that will make juicy newspaper headlines:

“Even if the government can persuade markets that it has already committed enough to put the banks back on an even keel, its troubles are far from over. At the very least, fiscal austerity will lead to a long period of very weak growth. At worst, Ireland may be forced to default.” ‘}

ITEM 3:

True Economics blog breaks it down : True Economics: Economics 18/9/10: IMF data on bond yields

and also,

BBC Robert Peston blog report on Ireland: BBC – Peston’s Picks: Why Ireland can’t afford to punish reckless lenders to its banks

and,

ITEM 4:

FT on Ireland:

Ireland will on Thursday unveil a fresh taxpayer-funded recapitalisation of Anglo Irish Bank, the institution at the centre of the country’s property meltdown, amid rising alarm in the markets over the country’s financial health.

Ireland’s cost of borrowing on Tuesday hit record levels with yields on 10-year government bonds jumping 25 basis points to 6.72 per cent.

Irish bond yields for 10-year debt are at similar levels to Greece at the start of April – only a month before Athens was forced to turn to the international community for loans.

The rise in yields came despite buying from the European Central Bank to help stabilise the markets, according to traders, as investors worried that the cost to bail out Anglo Irish and other financial institutions is much higher than first thought.

The Irish Central Bank’s additional capital injection is expected to be about €5bn. That would bring the bail-out costs for Anglo Irish to €30bn, shy of the €35bn forecast by credit rating agency Standard & Poor’s.

Brian Cowen, Ireland’s prime minister, said: “We are determined to do what’s necessary to achieve international confidence and build domestic confidence.”

As part of a choreographed series of announcements, Brian Lenihan, Irish finance minister and the legal shareholder of the nationalised bank, will announce plans to meet tougher capital targets, including a restructuring of part of Anglo Irish’s €16bn bond debt.

The announcement coincides with the expiry of Ireland’s two- year blanket guarantee for bank liabilities at its six domestic lenders, introduced in September 2008 to prevent a run on Anglo Irish.

ITEM 5:

BY IRISH INDEPENDENT – FINAL TAXPAYER BILL ON ANGLO

By Fionnan Sheahan Political Editor

Tuesday September 28 2010

THE Government will announce the cost and timescale of the plan to wind down Anglo Irish Bank by the end of this week.

The coalition’s approach to negotiating a deal with Anglo’s lenders will be closely scrutinised by international markets, amid warnings it will affect the cost of borrowing for the country.

The delay in providing a figure, estimated to be in the region of €30bn, on the Anglo strategy is being partly blamed for the rise in the interest rate being charged on borrowing by the State.

But the coalition hopes to provide some certainty to the markets when the details of the plan are announced by the Central Bank.

Finance Minister Brian Lenihan will brief his cabinet colleagues on the broad outline of the plan at their weekly meeting tomorrow.

The crucial elements of the Government’s plan to split Anglo and then gradually wind it down will be announced by the Central Bank later in the week.

Mr Lenihan and his officials in the Department of Finance have been in constant contact with the Central Bank and Financial Regulator regarding the fleshing out of the Anglo plan announced earlier this month.

The minister is understood to have discussed the latest developments in the drafting of the Anglo plan with Taoiseach Brian Cowen yesterday.

Mr Lenihan is also in touch with Communications Minister Eamon Ryan, who represents the Green Party on banking issues.

Central Bank Governor Professor Patrick Honohan and Financial Regulator Matthew Elderfield are responsible for estimating the cost and timeline for the plan.

But Mr Lenihan is being warned that a default on government-guaranteed debt at state-owned Anglo Irish Bank would lead to a funding crisis for the State and the banking system at large.

Goldman Sachs International chairman Peter Sutherland said the maximum saving the Government could make on sharing Anglo’s rising losses with debt holders was €5.1bn.

Crisis

However, the former European Commissioner and Attorney General warned that such a move would “precipitate a funding crisis” for the State and the banks and that the damage would be serious.

Mr Lenihan believes the Government’s decision to split Anglo will provide certainty about the bank’s future.

When asked about a timeframe for the wind-down earlier this month, Mr Lenihan said it would be “difficult to see it going beyond 15 years”.

Mr Lenihan also admits the proposal is not a “silver bullet” to restore international confidence in the Irish economy.

Lenihan to reveal full plan for Anglo wrap-up – National News, Frontpage – Independent.ie

 

BSk log, 27/09/10 September 27, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 9:04 pm

ITEM 1:

RECOMMENDED WEBSITES:

FINFACTS: IRELAND BUSINESS: FINFACTS IRISH FINANCE & BUSINESS PORTAL – mortgage Ireland, protection, life insurance, Financial Services, Investment, loans, Irish jobs Ireland, Dublin mortgages, Cork, Limerick, Galway, Share, Stock prices,

IRISH GOVERNMENT STRATEGY: Irish Government Strategy [licensed for non-commercial use only] / FrontPage

ITEM: 2

MERCANTILISM: Mercantilism – Wikipedia, the free encyclopedia

ITEM 3:

NEW BLOG ON IRELAND: Welcome to Green Tech Bubble

 

BSK log, 25/09/10 September 26, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 4:57 pm

MAIN ITEM OF DAY:

Spreadsheets on NAMA ‘project facilitators’

The Developers « NAMA Wine Lake

ITEM 1:

BY PROPERTY WEEK – ‘NAMA, really a property company’

‘We’re really a property company, not a bad bank …’ | News – print | Property Week

 

BSK log, 24/09/10 September 25, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 1:24 pm

ITEM 1:

BY THE IRISH INDEPENDENT – BOND YIELDS  / NTMA /

THE head of the country’s debt agency warned yesterday that a number of milestones would have to be passed before the rate of interest demanded by investors for Irish Government bonds narrowed.

John Corrigan, the chief executive of the National Treasury Management Agency (NTMA), said three issues would calm market jitters:

Decisions on the rolling over of existing loans by the Irish banks by the end of September,

  • Clarity over final cost of bailing out Anglo Irish Bank,
  • The upcoming Budget.

Speaking at a ‘Confidence in the Media’ conference in Dublin, Mr Corrigan said market concerns about the imminent funding challenges facing Irish banks were overdone.

He added that the authorities stand ready to make up any shortfalls.

“We’ve characterised concerns around this like the millennium bug,” Mr Corrigan said.

“We all thought the planes were going to fall out of the sky, the trains were going to stop, the clocks weren’t going to work,” he said.

NTMA chief outlines hurdles to achieving cheaper bond yields – Irish, Business – Independent.ie

 

BSK log, 23/09/10 September 23, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 12:21 pm

MAIN ITEM OF THE DAY

BY NEWSNIGHT BBC – MONEY PRINTING

BBC – Newsnight: Paul Mason: Next: QE2 – and if that doesn’t work it’s a currency war

ITEM 1:

BY THE GUARDIAN – IRELAND ECONOMY DOUBLE DIP

Irish economy faces double dip recession | Business | guardian.co.uk

Irelands recovery from the deepest recession of any eurozone country came to a quick and unexpected end today when the Irish government announced that national output dropped by 1.2% in the second quarter of 2010.

After posting an increase in growth in the first three months of the year, official data showed that the former “Celtic Tiger” sank into a double dip recession in the spring.

News of the relapse rattled the financial markets and put additional pressure on Dublin’s unpopular coalition government, which had previously insisted that its tough budget cuts were helping to stabilise the economy. Ireland has also been hailed by Britain’s coalition government for its decision to tackle the double-digit budget deficit left by the collapse of its property bubble with immediate and deep cuts.

Investors warned that fears about Ireland’s ability to generate growth would push up the interest rates on its debt.

ITEM 2:

BY BUSINESS AND FINANCE  – EURO SLIDE DUE TO IRELAND CONCERN

(Reuters) – The euro retreated from a five-month high versus the dollar on Thursday, stung by worry over Ireland’s banking sector and a contraction in the Irish economy that underlined concern over the euro zone periphery.

Euro slides on Ireland bank, growth concerns – Business & Finance