R. Cort Kirkwood
Nov 12, 2012
The Irish approved an amendment to their national constitution on Saturday that will bring it into compliance with mandates of the United Nations that govern the state’s seizure of children. The margin was 57 percent to 43 percent.
The Alliance of Parents against the State campaigned against passage of the referendum on the measure, which APS says will diminish the rights of parents and give the Irish government nearly unbridled [...]
Busting through the Gates of Leinster House.
Posted by Dr. Pitchfork
During a massive demonstration against the bank bailouts in Dublin yesterday, a group of protesters attempted to break through the gates of Leinster House, home of the Irishgovernment. Although the attempt to storm the Dáil was mostly symbolic, punches were thrown, heads were cracked and there was, indeed, blood in the streets.
The demonstrators are angry about the bailout of the major Irish banks and their bondholders. [...]
Ireland Plans $2.76 Billion Stimulus Package
The Irish government Tuesday said it has found over €2.25 billion ($2.76 billion) to salvage a number of delayed road, school and health-care construction projects, which it hopes will create jobs without increasing the debt burden of the troubled economy.
Spain: King Juan Carlos And Crown Prince Felipe Take 7% Pay Cuts in Austerity Drive
King Juan Carlos and Crown Prince Felipe are cutting their yearly salaries [...]
National Asset Management Agency (NAMA) chairman Frank Daly said the move was due to anticipated supply shortages.
The investment could generate up to 25,000 construction jobs and up to 10,000 additional jobs in the wider economy, he told an accountancy meeting in Galway in the west of the country.
“Subject to suitable opportunities arising, we plan to invest at least €2bn in Ireland in development capital in order to preserve, enhance and [...]
As households struggle to pay their mortgages, the country’s rescued banks may need €4bn (£3.2bn) more to cover losses on loans than was assumed in stress tests last year, said analysts at Deutsche Bank.
That would hit the finances of the Irish government, which has already pumped about €63bn into its banking sector in the last three years.
“A new, even modest, increase in [banks’] capital requirements could deter sovereign investor participation [...]
Iceland fared better by letting banks fail
by Thomas Molloy of Irish Independent:
Iceland pursued better policies than Ireland or Latvia when the three countries’ economies collapsed in 2007 because the Reykjavik government allowed banks to fail, according to a new report by the influential Bruegel think tank.
The report by economist Zsolt Darvas looked at the response of the three small and open economies. The three countries all initially allowed the credit boom to [...]
Toss in contingent liabilities for the banks, local governments, and things like the railway system, and even optimists put the number at 90%. Pessimists put it at 200% or higher, Greek territory. Remember, Irish government finances were the envy of the world until its real estate boom went bust. In any case, “China’s fiscal resources are not as limitless as they seem.”
Earlier this week, I appeared on Bloomberg, and the interview [...]
1) Italian Yields Reach 9-Year High as Crisis Spreads; Bunds Gain
“Italian bonds slid for a fifth straight day, pushing yields to a nine-year high, as contagion from Greece’s fiscal crisis intensified in the region’s biggest government-debt market.
Spanish, Irish and Greek bonds also fell. The additional yield investors demand to hold 10-year Italian securities instead of German bunds widened to a euro-era record as data showed the Mediterranean [...]
Allied Irish Bank has ‘defaulted’
“The International Swaps and Derivatives Association (ISDA) yesterday said that a “credit event” had occurred on Allied debt, meaning the bank has effectively defaulted on its debt, a situation the Irish government has gone to extreme lengths to avoid.
Credit default swaps (CDS) sold on Allied subordinated bonds and, crucially, [...]
Euro pares losses on Irish debt margin hike
“The euro pared losses against the dollar Wednesday, after one clearing house raised its margin requirement on Irish debt.
On Wednesday, LCH.Clearnet Group said it raised its margin requirements for Irish government bonds to 65% from 55% in response to the yield differential of 10-year Irish government debt against a AAA benchmark.
“Looks like someone is worried about Irish losses,” said Kathy [...]
Europe Investors Should Accept ‘Soft’ Default: Gross
Irish face junk status if Greece restructures
Japan exports drop 12.5 pct in April after tsunami
BOJ Open to Further Stimulus Measures
Korea’s Bad Bank to Purchase US$1.1 Bil. Worth of Soured Loans
Banks Face $17 Billion in Suits Over Foreclosures
Harrisburg Act 47 plan coordinator talks county sales tax, bankruptcy with Corbett administration
Fitch: U.S. CMBS Loan Defaults Likely to Climb to 12% by End of 2011
Irish Government bond [...]
The Irish government plans to institute a tax on private pensions to drive jobs growth, according to its jobs program strategy, delivered today.Without the ability sell debt due to soaring interest rates, and with severe spending rules in place due to its EU-IMF bailout, Ireland has few ways of spending to stimulate the economy. Today’s jobs program includes specific tax increases, including the tax on [...]
FRESH fears that British taxpayers will be forced to pay billions of pounds more cash into European Union emergency rescue schemes were raised last night after the euro crisis deepened.
Ireland’s fragile banking sector pleaded for an extra £21billion to stave off collapse yesterday while debt-stricken Portugal came under further pressure to accept a massive EU bailout.
The double blow to the troubled eurozone raised concern [...]
CNBC spoke to Nouriel Roubini this morning about the situation in the eurozone.
* 0:40 Don’t think there will be QE3. Growth is ok, inflation is rising, and new members are more hawkish. Don’t expect a rate hike until 2012.
* 1:25 Worried about Europe’s periphery, in the context of an ECB rate hike. Worried this is going to damage countries like Ireland, Greece, [...]
by Gordon T. Long of Tipping Points
Beware of Lurking North Africa & EU Bank Runs (abridged version of EU & North Africa Bank Run Contagion Research Report)
Stealth bank runs are the unrecognized and perilous serpent lurking presently below the European financial surface. They prey on slower moving archaic bond vigilantes and anyone else swimming in these dangerous uncharted waters.
Investors need to fully appreciate that a modern [...]
Per ZH, “Ireland Government Crumbles As Green Party Pulls Out Of Ruling Coalition”, at http://www.zerohedge.com/article/ireland-government-crumbles-green-party-pulls-out-ruling-coalition .
It has been a while since we had one of those “before Asia opens” kind of Sundays. Today just may be one. BBC has just reported that the Irish Green party has pulled out of the ruling coalition with Fianna Fail which is “expected to bring forward the general election from [...]
1) China Ex-PBOC Advisor Repeats Call to Cut Tsy Holdings: Press
“BEIJING (MNI) – China should cut its holdings of U.S Treasuries to minimize losses on its foreign exchange reserves and let the yuan move more freely, Yu Yongding said in an opinion piece published in Caijing magazine.
Moving towards a more market-driven exchange rate would mean reduced intervention in the foreign currency markets, giving China the [...]
Minerd does have some pertinent observations on how the imminent pan-European bank run will eventually look like.
â€˜Imagine Youâ€™re Irishâ€™
To help explain why I believe a broader financial crisis is coming to Europe, let me start with a quick story. Imagine for a moment that youâ€™re an Irish citizen. Needless to say, you have many concerns about your countryâ€™s economic situation. The unemployment rate is 13.7 percent [...]
1) Moody’s slashes Ireland credit rating
“DUBLIN â€” Moody’s on Friday slashed its credit rating on debt-stricken Ireland just days after parliament approved a massive international bailout and as the European Union battled to safeguard the euro.
Moody’s Investors Service cut its rating on Ireland by five notches from Aa2 to Baa1, citing increased uncertainties over the country’s economy and public finances. Moody’s added that the Baa1 [...]
Interest-Rates / Global Debt Crisis
Sadly, though, even while most Americans were enjoying the holiday or hitting the malls, much of Europe was sinking deeper into a new, more severe phase of its sovereign debt crisis.
This crisis is unfolding despite Herculean rescues by the European Union, the International Monetary Fund and the U.S. Federal Reserve.
Itâ€™s striking right now.
And itâ€™s threatening to spread [...]
We can only hope the Spanish, Italian and French packages are deemed more satisfactory by the market.
On the Irish Package and EMU Sovereign Debt
In an emergency meeting this afternoon, EU Finance Ministers and the IMF have agreed to extend financial support to Ireland. According to EU Commissioner Rehn, no â€˜haircutsâ€™ will be applied to holders of senior bonds issued by the Irish banks. However, we would [...]
Today the myth of a popular, democratic government in Ireland collapsed for good. After an impromptu poll of 500 people nationwide found that a “substantial majority” of the people, or 57%, wants the State to default on debts to bondholder, what it ended up getting was precisely the opposite. Why? “Last night that the Irish delegation negotiating with the EU-IMF last week [...]
So what does Ireland do (besides requesting a bail-out from the EU and IMF)? It make its National Pension Reserve Fund (NPRF) help out by investing its assets in Irish 4-year bonds that return 1% annually, with a possible bonus if invested longer. Gee…
Irish bond yields soar despite new austerity plan
The yield on Irish benchmark 10-year government bonds jumped to record highs above 9.0 per cent [...]
Dear RepoClear Member,
1. In accordance with the Sovereign Risk Framework issued on 5 October 2010, and in response to the yield differential of 10 year Irish government debt against a AAA benchmark, LCH.Clearnet Ltd has revised the risk parameters for Irish government bonds cleared through the RepoClear service.Â The margin required for positions of Irish government bonds will consequently be an additional 45% of [...]
They report the Irish Prime minister is refusing to resign amidst calls for him to resign, even though part of the coalition has already called for a General election in January. They interviewed some Irish citizens, who were saying how they felt about economic developments and in it soaring unemployment many Irish young people were talking of emigrating to find work, something thatâ€™s about to [...]
By London correspondent Rachael Brown
As Ireland edges closer to accepting an international bailout package, its government insists its low corporations tax is not up for grabs.
Talks between European officials, the International Monetary Fund and the Irish government continue in Dublin.
Just days ago, the Irish prime minister Brian Cowan was adamant the country was not asking for help, but now the tune is different.
Speculation is [...]
Congressmwoman Cathy McMorris Rogers, who in a just issued press release notes that she had warned the administration in April that a blank check for Europe would cause a â€œgathering storm.” She is, of course, right.
From the issued release:
Congresswoman McMorris Rodgers Opposes U.S. Participation in Likely Ireland Bailout
Congresswoman Warned Administration in April That Blank Check for Europe Would Cause â€œGathering Stormâ€
Washington, DC â€“ Rep. Cathy [...]
EU austerity drive country by country:
Greece to intensify austerity measures even further to satisfy conditions of IMF continued financing:
European cities hit by protests:
Food price rises, also clothing costs and inflation a growing concern:
Irish government forced to make even bigger saving and intensify austerity on its population:
Australia set to increase interest rates and Aussie dollar heads for parity with US dollar:
UK government imposing austerity measures, cutting Civil service and government [...]
Irish bond yields hit a new record high above 6.7 per cent today as speculation continued that European government finances are worsening.
By 1.03pm, the yields on 10-year Irish Government bonds rose to 6.734 per cent, with the spread between the German bund and Irish bonds widening to 445 basis points. Earlier, yields had hit a high of 6.786 per cent.
The yields jumped 20 points this morning as a report from [...]
Europe : The sovereign debt crisis in Europe has further tarnished the credibility of Ireland’s government-owned bank, Anglo Irish Bank.
The Moody’s rating agency has cut its key rating for Anglo Irish Bank’s debt to the lowest investment grade, warning that the next step could be a “junk” rating unless the government guarantees bond holders against future losses.
In a statement, Moody’s said it expects “a continued asset quality deterioration in [...]
Asian markets were all higher in overnight trading, with the Shanghai Composite up a notable 1.41%. European markets are mostly higher this morning, and U.S. futures suggest a higher open.
The euro has slipped off its 5-month high against the dollar as a result of increasing pressure on the continent’s banking system. It is now at 1.3456 USD/EUR. Follow up to the minute markets coverage at Money Game >
Both China [...]