Ireland second European nation to seek bailout

[nick1985]

http://www.msnbc.msn.com/id/40299184/ns/business-world_business/

"DUBLIN — Debt-struck Ireland on Sunday formally appealed for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming "Celtic tiger" and the economic envy of Europe. "

Another domino falls, many more to come.

 

[Pocatello]

Who is going to rescue the U.S?

 

[Jaskalas]

http://www.msnbc.msn.com/id/40299184/ns/business-world_business/

"DUBLIN — Debt-struck Ireland on Sunday formally appealed for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming "Celtic tiger" and the economic envy of Europe. "

Another domino falls, many more to come.

Hmm... which states in the US were economic envies? :hmm:

 

[sMiLeYz]

Who is going to rescue the U.S?

Republicans of course

 

[nick1985]

Republicans of course

democrats?

 

[Schadenfroh]

Who is going to rescue the U.S?

Printing presses

 

[nick1985]

Printing presses

:thumbsup:

 

[Beowulf]

So much for their austerity measures, looks like they'll be reading Keynes General Theory pretty soon.

Ireland's government has slashed public-sector spending by 7.5% of gross domestic product with a series of drastic cuts this year: public sector pay by 15%, child benefit by 10%, unemployment benefit by 4.1%. Another €3bn will be removed next year, a total of 10% of GDP over three years: these measures are equivalent to the British government slashing its budget not by the £6.25bn planned by George Osborne in 2010, but by an incomprehensibly gigantic £150bn.

 

[BoberFett]

So much for their austerity measures, looks like they'll be reading Keynes General Theory pretty soon.

Ireland's government has slashed public-sector spending by 7.5% of gross domestic product with a series of drastic cuts this year: public sector pay by 15%, child benefit by 10%, unemployment benefit by 4.1%. Another €3bn will be removed next year, a total of 10% of GDP over three years: these measures are equivalent to the British government slashing its budget not by the £6.25bn planned by George Osborne in 2010, but by an incomprehensibly gigantic £150bn.

So you're saying the problem was that the Irish government wasn't spending enough money? Where was this money going to come from? Were their people lining up to buy Irish bonds?

 

[nick1985]

So you're saying the problem was that the Irish government wasn't spending enough money? Where was this money going to come from? Were their people lining up to buy Irish bonds?

Ireland wasn't in debt enough, thats why their economy failed. lol

 

[Beowulf]

So you're saying the problem was that the Irish government wasn't spending enough money? Where was this money going to come from? Were their people lining up to buy Irish bonds?

They went too hard on austerity measures coupled with the uncertainty of cost associated with bailing out the Anglo Irish bank has caused the yields of their bonds to go up. Not to mention in 2008, they took the measure of covering the losses of all the banks in Ireland. Still to this day, they aren't certain of how much losses the banks took. I do remember after they proposed austerity measures the bond market got happy with the Irish only to come back and bite them in the ass. Even their central bank was demanding deeper cuts to boost their bonds but thats unlikely...seems the EU is just going to bail them out and hope the bleeding stops slightly.

 

[Greenman]

I thought the Irish meltdown was inevitable? Isn't government something like 70% of the GDP?

 

[Pocatello]

Which country will be next? Portugal?

 

[Beowulf]

Ireland wasn't in debt enough, thats why their economy failed. lol

The banks and government of Ireland failed the people. Their banks played plenty of games during the real estate bubble that happened worldwide. Now those same banks have become reliant upon the ECB and bleeding deposits. All those austerity measures haven't worked out either since tax revenue has dropped due to the same real estate bubble. Not to mention they had to raise corporate tax rates to try to get any revenue coming in.

 

[Acanthus]

ireland was a shining success story 10 years ago for having low taxes and low regulation. It was an example of what conservative economics can do.

The banks sold them up shit creek without a paddle, and not even billions of american dollars being funneled through the country for tax evasion purposes can save them.

Hello Germany, can we have some of your money please?

 

[Jiggz]

Who is going to rescue the U.S?

The printing press machines at the Fed Res! The only reason we are having deficits right now is because the printing machines haven't been able to keep up lately. But with the arrival of more machines the US should be able to over come budget deficits! Lol. . .

 

[JS80]

ireland was a shining success story 10 years ago for having low taxes and low regulation. It was an example of what conservative economics can do.

The banks sold them up shit creek without a paddle, and not even billions of american dollars being funneled through the country for tax evasion purposes can save them.

Hello Germany, can we have some of your money please?

Lol capitalism made them globally competitive and gave them enormous wealth, which the liberal/socialists squandered through government spending and of course you blame the conservatives. Loliberals never fail.

 

[Acanthus]

Lol capitalism made them globally competitive and gave them enormous wealth, which the liberal/socialists squandered through government spending and of course you blame the conservatives. Loliberals never fail.

What?

Ireland didn't even have a large national debt until their banks imploded themselves on real estate and derivatives.

Are you even familiar with the situation?

 

[Zebo]

Fools. You can't live like Germans unless you produce like Germans. And don't ever take out more debt than you have collateral and debt should be used for productive assets.. I was taught this at ~7 not rocket science.

 

[nick1985]

ireland was a shining success story 10 years ago for having low taxes and low regulation. It was an example of what conservative economics can do.

The banks sold them up shit creek without a paddle, and not even billions of american dollars being funneled through the country for tax evasion purposes can save them.

Hello Germany, can we have some of your money please?

Fucking conservatives.

 

[Beowulf]

I don't think this is a conservative vs liberal issue. It's more of a well regulated banking system vs deregulated banking system. Banks should not be able to get into investment banking nor playing the derivatives game. This happened not only in the US but also internationally.

Take a glance at the value of Canadian banks vs American banks. During the crisis, both banking systems took a heavy hit in the stock market. Now Canadian banks are floating much higher than its American counterparts. Canada has stricter regulations on banks compared to us and they didn't get into as much risky business as our banks. Of course I'm not saying our banking system needs to be like Canada.....but we could learn a few things that might be helpful for us.