Ireland Seeks Aid Accord Before Markets Open as Investors Flee Bank Bonds

[Joanne98]

Source: Bloomberg

Ireland is pushing to conclude talks for an international rescue package today as European Union officials race to stop the country’s financial crisis from spreading to the rest of the euro region.

The Irish government wants to reach an agreement before markets open tomorrow to stamp out the “uncertainty” that’s unsettling investors in the euro region, Energy Minister Eamon Ryan told Dublin-based broadcaster RTE yesterday. European finance ministers plan to meet from around 1 p.m. in Brussels, EU officials said on condition of anonymity.

Prime Minister Brian Cowen’s government is finalizing a bailout agreement that may amount to 85 billion euros ($113 billion) after more than 50,000 people took to the streets of Dublin yesterday to protest budget cuts. As Ireland’s crisis spreads to Portugal and Spain, investors are looking for details on the interest rate Ireland will pay on its loans and the fate of senior bondholders in the country’s banks.

“The euro is under threat here,” said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. “The market has got it into its head that it is going to pick off one country at a time.”



Read more: http://www.bloomberg.com/news/2010-11-28/ireland-seeks-aid-accord-before-markets-open-as-investors-flee-bank-bonds.html

[bemildred]

1. More bizarre babble.

How to spook the Irish into accepting this bailout without also spooking the investors being bailed out? Is that the question?

And this gem:

“The market has got it into its head that it is going to pick off one country at a time.”

So now the market has nefarious intentions to crash the Euro. Hmm.

[Starry Messenger]

2. It's all a bunch of crap.

These assholes actually believe that the invisible hand exists.

[thunder rising]

3. "pick off one country at a time." Bondad said that months ago when it was Greece

Keep paying off the banks. It's a winner, it can't fail.

[DJ13]

4. The government should not give in to blackmail & tell the bond holders to pound sand

The notion of making everyone pay for the foolish bets made by the wealthy is asinine.

[bossy22]

6. so basically tell the people that are financing you to go F themselves?

sounds like an ingenious plan. and what foolish bet?- that by lending the government money you would get your money back?

Too many people on DU are trying to turn this into as an example of "the war on the middle class" which it is not. These arent derivative tradings or credit defalt swaps- this is BUYING GOVERNMENT DEBT AND EXPECTING TO GET REPAID. so what happens if you tell people who buy your debt to go f*ck themselves- well then no one will buy your debt which means you will either have to balance your budget or default.

Many of these countries are suffering from one key aspect- population aging and decline. Markets (including the bond markets) don't value things at what they are worth today but what they will be worth in the future. Its hard to see good economic growth in countries whose population is aging and is going to decline in the near future (or stay stable).

[Name removed]

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