Anyone listening to Pat kennys programme?

mike65

Interesting chat with the Telegraphs financial editor. He reckons Ireland has been hung out to dry but could be relieved of the impending burden as the whole Eurozone crisis reaches a head and "Quantitive Easing" and massive Bond buying becomes an imperitive.

Here is the article which prompted the discussion.

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8171403/Mounting-calls-for-nuclear-response-to-save-monetary-union.html

Sir Oxman

Yes, he is saying what most commentators/economists seem to be saying.
The game of kick the can is about to come to an abrupt end which can only be good for Ireland.
The silly one-size-fits-all Euro is about to get some badly needed reform

Dannyboy83

So much anti-EU sentiment springing up in Cork recently (& online).

I'm surprised at how rapid and how vehemently it is developing.

westtip

I think what is beginning to come though is 20 years of living beyond our means, every state is overspending and over borrowing.

If QE comes what will German Savers say? and it's the Germans who will - like it or not have the final say on this.

The Germans will leave the Euro and return to the DM rather than see the entire stock of German savings devalued to save the likes of Ireland, Portugal, Belgium, Spain and Italy.

Why should the Germans pay for poor governance in these other nations.

What it does show that without political union the idea of a single currency is poppycock - which is what the UK eurosceptics have always said.

If we want the Euro to continue we will have to live within our means according to the Germans and take the medicine.

if we don't we will have to live with a highly dominant DM in Europe.

Take your pick.

eigrod

westtip wrote: »

I think what is beginning to come though is 20 years of living beyond our means, every state is overspending and over borrowing.

If QE comes what will German Savers say? and it's the Germans who will - like it or not have the final say on this.

The Germans will leave the Euro and return to the DM rather than see the entire stock of German savings devalued to save the likes of Ireland, Portugal, Belgium, Spain and Italy.

Why should the Germans pay for poor governance in these other nations.
What it does show that without political union the idea of a single currency is poppycock - which is what the UK eurosceptics have always said.

If we want the Euro to continue we will have to live within our means according to the Germans and take the medicine.

if we don't we will have to live with a highly dominant DM in Europe.

Take your pick.

Were the German banks not complicit in all the money being 'loaned' out ?

dan_d

I have to agree with the theory behind the article. I have asked this another thread - where are we going with this? Does the EU just keep bailing out countries until there's no money left??What happens if this "contagion" hits Spain? Do they stop and say "hang on a sec, we better sit down and come up with a plan here"...

There doesn't appear to be an overall strategy for stabilising/saving the Euro. They are running from country to country, as the bond markets dictate, flinging money at the countries. I don't deny we ran ourselves into a huge amount of the trouble we are in, but in terms of the overall Euro - what's the plan?? Coz I don't see one, apart from watching the markets and praying to God that everything will be okay. They cannot afford to bail out every country that needs it, so why not stop NOW and come up with an actual strategy, a plan that includes every country, and has a real possibility of stabilising the situation (though what that is, I've no idea). I'm fairly sure what they're doing now is not a solution, either short or long term.It's like putting band aids on a severed artery.

Sooner or later this is going to blow up in everyone's faces.Why can't the people in charge realise that???

ednwireland

the german banks were throwing money around outside germany because they would get better returns outside germany, because of tight fiscal controls internally their banks are as to blame as anyone else.

amacachi

westtip wrote: »

I think what is beginning to come though is 20 years of living beyond our means, every state is overspending and over borrowing.

If QE comes what will German Savers say? and it's the Germans who will - like it or not have the final say on this.

The Germans will leave the Euro and return to the DM rather than see the entire stock of German savings devalued to save the likes of Ireland, Portugal, Belgium, Spain and Italy.

Why should the Germans pay for poor governance in these other nations.

What it does show that without political union the idea of a single currency is poppycock - which is what the UK eurosceptics have always said.

If we want the Euro to continue we will have to live within our means according to the Germans and take the medicine.

if we don't we will have to live with a highly dominant DM in Europe.

Take your pick.

Their state finances shouldn't have been affected but their banks lent money knowing the risks, the Irish people shouldn't have to pay for that.

Paulzx

German banks smelt big profits and were happy to lend the money where it was wanted. Our banks, bad as they are, dont have a monopoly on greed.

The chickens are coming home to roost everywhere

westtip

eigrod wrote: »

Were the German banks not complicit in all the money being 'loaned' out ?

Yes indeed the German Banks have a lot to answer for - but the German people - the German electorate - the ordinary German saver very careful and very cautious with his money.

The German banks were lending the deposits of German Savers - are they (German Savers) too not entitled to have their savings guaranteed? and you can bet your bottom dollar - or DM in this case that the German Government will bailout German savers a lot faster than an irish saver. Tis a mess isn't it.

Auvers

westtip wrote: »

but the German people - the German electorate - the ordinary German saver very careful and very cautious with his money.

I was also very cautious with my cash during the so called Celtic tiger and I would say there is thousands of Irish people are also the same as me being sensible with their cash

so since when did private bank debt become my debt?