new lows reached

ei.sdraob

reached courtesy of Anglo Irish (Irish 10 year debt currently at record 6.61%)

which was downgraded to just above junk

Moody's cut Anglo Irish's senior bonds by three notches to Baa3, the last level before junk, but the markets' main focus was on the deep, six-notch cut in the bank's subordinated debt, to Caa1, which indicates that bondholders will be forced to pay for some of the expected bailout.

"Moody's expects a continued asset quality deterioration in the loan book of Anglo Irish that will require further government support for the bank's liabilities," Ross Abercromby, lead analyst for Anglo Irish at Moody's, said.

According to the rival credit ratings agency Standard & Poor's, the cost of saving the Dublin-based lender may rise to as much as €35bn.

As speculation mounted that the embattled Irish government is poised to admit that it has cost €35bn (£30bn) to bail out Anglo Irish – more than a fifth of the country's GDP – the main opposition party seized the moment by claiming it would try to force a snap election.

http://www.guardian.co.uk/business/2010/sep/27/anglo-irish-downgrade



yep €35 billion (thats €35,000,000,000 to be sure to be sure ) down this hole



i wonder why all of the people here who were defending the decisions on Anglo and NAMA gone quiet lately?
each man woman and child has been robbed to the tune of 8000 euro for which yee will pay via steeper taxes and reduced services...


edit: last paragraph from the Guardian article above

In a move seen as an attempt by Germany and the European Central Bank to hold the eurozone together, agreement was reached today to penalise countries that are lax on their debt and budget deficit levels. The EU economic and monetary affairs commissioner, Olli Rehn, intends to table measures on Wednesday that would result in sanctions that would be "triggered early enough in the process so that they are essentially preventive".

welcome our EU overlords

Mister men

I welcome the IMF and the EU into running this country. We are incapable of governing ourselves tbh.

ei.sdraob

Mister men wrote: »

I welcome the IMF and the EU into running this country. We are incapable of governing ourselves tbh.

The European Central Bank considered activating the euro-region’s rescue fund to assist Ireland in refinancing debt, German newspaper Handelsblatt reported, citing unidentified government officials.

Various euro-area countries had already been told to raise money on Ireland’s behalf if the need arose, the newspaper said, without giving more details. In the end, the authorities decided against the plan, it said.

The spread, or extra yield, investors demand to hold 10- year Irish bonds instead of German debt of the same maturity widened to a record 411 basis points last week.

http://www.bloomberg.com/news/2010-09-27/ecb-considered-using-euro-rescue-funds-for-ireland-handelsblatt-reports.html

dan_d

I love your optimism first thing in the morning ei.sdraob!! (and I think we actually need a bigger hole):D;)

But on a serious note, my understanding on these things is a bit shaky. Fundamentally, it would appear that, should anything happen regarding bailouts etc, Anglo is the catalyst.There's a surprise.

Nama was made a time when a decision had to be made. However I would question that, as time went on, it would have been worth taking Anglo out seperately and dealing with it by itself - though that probably would have been far, far too complicated.Especially, given the endless, intertwined links that exist between banks and developers in this country, I suppose.

The one thing about that Bloomberg article is that it's written in the past tense. I know it was published on Monday, but it's past the fact, and it notes that they decided to do nothing. However that sort of scaremongering does not help us at all. And unfortunately, we do need these fabled "markets" to have a good image of us, it would appear. Hopefully the announcement about Anglo will help matters a bit - depending on the amount needed to bail it out.

If Anglo is downgraded to "junk" what effect does that have on our other banks? I understand it will probably force interest rates up on the borrowing we do (am I right?) but it doesn't necessarily mean our economy as a whole has been downgraded??

I should also add that, at this point, Sean Fitzpatrick should be in a courtroom. It would appear that he, his lending practices, and his bank are actually going to drive us into the ground, even after he's left it.