Government taking 85% stake in AIB

Raskolnikov

According to politics.ie - http://www.politics.ie/economy/139340-lenihan-about-spend-3bn-shares-worth-less-than-600m.html

pocketdooz

Bloomber running with the story too

http://www.bloomberg.com/news/2010-09-30/anglo-irish-allied-irish-may-need-as-much-as-19-6-billion.html

No surprise really. This country is run by bumbling idiots. As for the banks .... Jesus, don't get me started.
.

ixus

Whocudanodeit?!:rolleyes:

I think there has been enough warning on this forum that this was a strong probability. I hope regular posters took this into consideration if they invested.

Lets keep this potential power keg dry and remain civil. Doubt I'll be online much today. Should be some busy markets!

Barr

What would this mean for existing shareholders and share prices ?

Bullish

Pocketdooz,
I would really like to hear your thoughts on how the country can get out of this hole the F

---

g bumbling idiots have put us in,

or any other economist types amongst us,

From a trading perspective I think the US market is topping ( just depends on how long the US fed will keep printing to prop it up )

rugbyman

Welcome back Bullish, same good wishes to Pirelli.

Rugbyman

RoadKillTs

Hi Bullish,

Welcome back!!


I'd also love to hear peoples thoughts on this quantitative easing craic the UK and the US are up to at the moment.

Reading a booked at the moment "when money dies". Have to say it doesn't really fill me with confidence.

Bullish

Hi guys

Well roadkill I can help a little with that a little, below is the link
that the FED website detailing the schedule of their open market
operations, now being affectionately called POMO

http://www.newyorkfed.org/markets/tot_operation_schedule.html

the link below shows the operation today 30th sept.

http://www.newyorkfed.org/markets/pomo/display/index.cfm

2 billion was created out of thin air today and an estimated 100 bil per
month is being created, to purchase US treasuries and give liquidity to
the market, and try to stimulate inflation. If you check the dates of the POMO
and reference it against a chart of the DJI or SPX you can see the effect it has.
Fundamentals have apparently gone out of the window in the market with
Leader stocks showing PEs in the 30s up to 300.


The effect on other countries is their currency is appreciating against
the US dollar and their exports are being effected, So Japan is now
intervening in the market to devalue their currency, Brazil has joined
in too, America is accusing China of currency manipulation and the beginning
of a possible trade war is brewing, not to mention the currency race to the
bottom,


We on the other hand seem to be stuck in Limbo, 50 BL to the banks
a wobbling economy, which is about to be squeezed to death by austerity measures.
We have no way of printing this problem away over time, or creating inflation

From what I can see the Government has basically hoodwinked the bond markets into
giving us enough cash to get by till may next year, before they announced the
bank "woes" and will not sell bonds again till January.

They kicked the can down the road with the bank guarantee scheme last year,
and have kicked it again down the road till January. I hazard to think what the bond interest will be then.

Thats why I asked the question to the economist minded among us, how can Ireland
Get out of this mess.

D-Generate

I thought Japan made a desperate attempt to intervene but failed horrendously and have since stopped intervening. Japan can't devalue their currency alone and no country out there wants to help them. Suits the US fine for the Yen to be sky rocketing as it is.
The problem seems to be that the Ken Administration aren't all too amicable with the BOJ. So whilst Prime Minister Ken has been an outspoken critic against the Yens strength, there is no real partnership with the BOJ and hence sweet **** all is happening.

Switzerland have also been trying to devalue their currency against the Euro in another futile attempt which has probably cost the bank there an almighty amount since they have been attempting this since early last year.

Bring on the trade war though!

ranger4

Gov will also introduce a property based tax which is expected to generate upto 1 billion euro a year along with a annual water tax which could also generate upto @400 million in revenue which would go a long way in paying for the annual bank bailout programe.

Bullish

Ah thanks ranger, I didnt realise it was so simple
:rolleyes:

pirelli

Bullish wrote: »

Hi guys

.

Hey Bulls

Welcome back buddy. We have complied withe IMF and kept our banks up and runnning. We also lent to Greece and apart from Anglo bank we have been relatively honest since the crash. I think we are entitled to some support should it become neccessary but i would like to see some new legislation to ensure better accountability from our professionals before we have to go cup in hand.

ranger4

Bullish wrote: »

Ah thanks ranger, I didnt realise it was so simple
:rolleyes:

Your welcome.

OfflerCrocGod

Bullish wrote: »

Ah thanks ranger, I didnt realise it was so simple
:rolleyes:

Ireland's tax base is relatively low compared to the OECD average, I believe only Mexico and the US tax less. There is plenty of scope for taxing more and if you couple that with more cuts then it will be enough for the country to get by even with the higher rates it will need to pay for debt.

Quite a few commodities which are linked to industrial growth have done well this year so I'm pretty sure there will be no double dip.

displaced dub

pocketdooz wrote: »

Bloomber running with the story too

http://www.bloomberg.com/news/2010-09-30/anglo-irish-allied-irish-may-need-as-much-as-19-6-billion.html

No surprise really. This country is run by bumbling idiots. As for the banks .... Jesus, don't get me started.
.

We would be luck if they were just bumbling idiots, if you were to go by the rumors of the lenihan conference call this week its chimps who are running the country.

displaced dub

Bullish wrote: »

Pocketdooz,
I would really like to hear your thoughts on how the country can get out of this hole the F

---

g bumbling idiots have put us in,

or any other economist types amongst us,

From a trading perspective I think the US market is topping ( just depends on how long the US fed will keep printing to prop it up )

For a start they can come out this week and get the budget out of the way so at least the punter on the street knows how much they have to spend.

Ive had a client on this week trying to pear back their christmas deliveries and another few not looking at any water based product for next year because of the uncertainty of the budget and weather there will be water charges, property taxes etc.

We need certainty like they gave the markets with the latest bank bailout figure before the punters start spending and stop saving