That Letter

Hannibal Smith wrote: »

Strange how the letter vwas leaked right in the middle of the water charges protests. Seems to me like a political stunt to shine light on where it all started and take some of the blame off Kenny.

Only thing is...The past is the past. He said he could get us all through it, would negotiate a better deal for us...and yet here we are debacle after debacle as he fumbles through yet another storm without showing any form of leadership whatsoever.

Jesus can people take off their tinfoil hat's? The ECB had control over the letter and couldn't give two fvcks about our internal politics and water charges ****e

Hannibal Smith wrote: »

Seems to me like a political stunt to shine light on where it all started and take some of the blame off Kenny.

Did the government release the letter?
Or.... Try very hard to not do so.

Conspiracy!

He said he could get us all through it, would negotiate a better deal for us.

http://m.rte.ie/news/business/2013/0208/366775-the-anglo-irish-promissory-note-deal/

This was as good as it got.
It will save a tonne of cash, but its still a sh*t sandwich.

Grayson wrote: »

I know. It was default or take the loan. Even with the conditions it was better than having the country and all the banks collapse.

I think the problem is we were forced to make a decision without any choice in the matter mainly to hold up the EU banking system and when we went to ask for better term's a couple of year's later were told to get lost even after having done everything that was asked of us.

IF we hadn't done it yes we probably wouldn't be on the way out of it yet BUT also the EU would be a lot worse of than it currently is as we wouldn't be propping up their banking system by taking all of the debt.

Hannibal Smith wrote: »

I never said they did.

You implied it was a political stunt, who by then if the ECB had control of the letter?

If anything these threatening letters make me even more deteremined not to pay Water Taxes, the Irish Gov and the EU can go take a run and jump

Caliden wrote: »

And who does Ireland owe money to? Would the collapse of IW threaten the rate at which money could be repaid?

No.

Repayment schedules of bonds are not related in any way.

The NTMA manage that.
After a bond auction this week, they said they hope to have all the IMF debt repaid & rolled into new bonds by early next year.

Shenshen wrote: »

I'm no economist, but what I fail to understand is how it could be called blackmail if a bank (ECB) asks a debtor (Ireland) to either take a structured bailout or it will stop supplying emergency funding?

Can someone explain that to me, please?

As far as I can see, Ireland was getting money from the ECB one way or the other anyway?

The bank (ECB) didn't ask a debtor (the Irish government) to take a loan to repay its debt - in 2007, the Irish government actually ran a budget surplus - it required that the Irish government take on all the debt of private (Irish) banks to repay the private foreign (predominantly German, UK and French) lenders.

Effectively, if the loans were defaulted upon, it would blow a hole in the banking system from where the loans originated.

The Irish government could have chosen not to take the money, thereby calling the ECBs bluff to make the state insolvent, but also effectively to bring the euro itself crashing down. The remains of the Irish banks would have been picked over by more sane and solvent foreign competitors and the likes of a "Santander AIB" would have sprung up in the high street.

But yeah, it was blackmail. "Take on the debt of all your private banks or we'll render you insolvent." All the Irish government had to do was say "Be my guest" knowing - as everyone did at the time - that if that happened, the euro currency itself would be dead in the water within a week.

But the Irish government blinked first.

We should have had the cop on to say we will not default on our countries debts but those of you who have privately lent money to private companies may handle your problems privately, nothing to do with us. End of.
Anglo, Aib, Bank of Ireland et al are no more "Ireland" than O'Briens sandwich bars or dunnes stores. Gambling involves risk. You lost, tough shít.

sbsquarepants wrote: »

We should have had the cop on to say we will not default on our countries debts but those of you who have privately lent money to private companies may handle your problems privately, nothing to do with us. End of.
Anglo, Aib, Bank of Ireland et al are no more "Ireland" than O'Briens sandwich bars or dunnes stores. Gambling involves risk. You lost, tough shít.

The problem with that was that if the regualr banks went bust, regular folk aren't getting money on payday, all loans and credit would stop, mortgages and outstanding loans would be called in by the bank to keep themselves solvent and the country would grind to a halt.

You're looking at an event occurring over a very short period of time where all the experts in the matter had massive vested self-interest.
Brian Lenihan goes looking for advice on what to do, no banker is going to turn around and say let the banks fail, we'll take the hit on the chin.

The_Captain wrote: »

The Department of Finance also had control over the letter since it was, you know, sent to them.
And Michael Noonan has acknowledged previously that he had access to the letters sent by the ECB.

Actually no they didn't and you would know that if you had been keeping track of this story over the past month instead of just reading one article on it today

The_Captain wrote: »

Funny then that both the Department of Finance and Michael Noonan are claiming to have access to the letters but are unwilling to release them

Control and access are two different things but go on and continue with your conspiracy theories.