Ireland Pays More For Borrowing Than Any European Country Except Greece

NTMA pays top dollar for debt.

Whatever way they try to spin it, today’s bond issue proves that the markets don’t believe the Irish government’s bullshit.  Ireland is paying more than twice what Germany pays for funding, and one major reason for this is the insane Anglo-Irish bank rescue.

Interest rates for Irish sovereign debt are going up, because the government chose the worst possible way to stabilise the banks.  So far, they have committed €24.5 billion to save a company that will never do business again and that wasn’t even a real bank to begin with, and nobody knows what the final cost will be.  It could be €30 billion.   It could be €40 billion of money lost by those who controlled — not managed — this disgrace of a bank.  And who loses?  Nobody except the  taxpayer.

€24.5 billion of your money and mine has so far been poured into a dead bank.  We’re sending out the lifeboat in a hurricane to retrieve a drowned man.

Anglo-Irish bank is finished.  Kaput.  It has no hope of operating as any sort of financial institution ever again, and besides, it was never systemic to the Irish economy.  The only systemic importance it had was to those in positions of influence who owed it countless favours.  It owned Fianna Fáil, and now Fianna Fáil is prepared to sink Ireland so that Anglo can get a decent burial.

Let no-one tell you that Anglo can’t be wound down.

It can.

Its deposit book can be sold off to another bank, in line with normal banking practice. It still has valuable assets.  There will be no run on the banks if Anglo were wound down, and nobody would suffer except …

Except those gamblers who bought risky bonds in Anglo, in the hope of making huge profits.

That’s what the Anglo bail-out is all about: rescuing ultra-rich international gamblers.

For this, and to keep their personal dirty secrets under wraps, Fianna Fáil are prepared to sell Ireland into penury, with the support of the Green Party.

16 thoughts on “Ireland Pays More For Borrowing Than Any European Country Except Greece

  1. It isn’t one major reason it is the only reason. Nobody has any idea how much this bank will cost! The bond holders have no idea whether in 10 years they will be the only people to be paid. This country while being a grand spot if you have a few quid is pure shite if you don’t. Not enough anger here I am afraid.

  2. It isn’t the only reason, much though I’d like to say it was. The budget deficit and collapsing tax base are also relevant.

  3. I’ve done some quite rough calculations on the projected effects of the bailout. The short answer is that we are probably in big trouble, and this should not come as a surprise.

    You might find this interesting. Here’s the link:

    That we pay so much more for credit is entirely understandable when you consider how high the national debt has climbed in recent years. It’s turning into a feedback loop where the interest rate goes up, which increases the debt, which makes Ireland a little less solvent, which increases the interest rate again.

    Conclusion: giving billions to a dead bank and further increasing the debt is only going to make the situation much, much worse.

  4. when did NAMA become NTMA? was it always the NTMA, or are they 2 different bodies? its funny how the name of places/things change after a disaster/near disaster think windscale /sellafield.
    what i don’t understand, is if i set up say, an airline in the morning, with a commitment from the government to cover all my costs/loans then the EU would be up in arms about anti competition and talk about monopolies. if ryan air came out and said it needed half a billion from the irish excheque to pay off loan/debts and secure all its employees jobs, i pretty sure they would be told to fuck off for themselves. i seriously doubt the irish government would be allowed intervene. so how are the government allowed bail out a bank? when was the last time you saw an anglo irish bank ATM? how important to life in ireland can a bank be if it does not provide that basic service? the German economy is picking up, little wonder as the irish taxpayer is funding its pension fund.

  5. NTMA was there before NAMA. Two different things.

    Anglo isn’t a real bank, as you say, but how do you feel about bailing out Fingleton’s phony building society?

  6. One thing that came to my mind when I heard that Ireland would have to pay a higher rate of interest for our loans is that we’re being treated like poor people who go to money lenders, because no bank will give us a loan. The people who can least afford it have to pay the highest interest? Crazy stuff this banking lark!
    Bob and Bono, how about campaigning for Ireland’s debts to be squashed?
    Also, how about paying taxes here? (Do either of them? Well, Bob doesn’t live here, but the other fella….)

  7. NTMA National Treasury Management Agency set up to manage the national debt. They were doing quite well and had almost paid off the excesses of C.J.H. when Ard Ri but then Charlie “I’ll spend when I have it” screwed that over.
    NAMA National Assets Management Agency set up to bail out failed Banks at the expense of generations of Irish tax payers yet to come. In order to keep the international Golden Circle in the style to which they have become accustomed. It is a great little system, if you are at the right end of the stick! The wrong end? Smelly and unpleasant , to put it mildly ,but the majority must be at the wrong end to keep the minority (tiny) at the right end. That is how the game works! So what if Ireland is consigned to penury and the Planes, boats and trains? F.F. rule and shall continuo to do so, at least 25% think they are doing a great job.

  8. The simplest way to compute the Anglo losses is to assume that all its “loans to customers” are worhless. That’s about €35 billion at Dec 2009. There are other items such as “assets held for sale” at about €22 billion. Don’t be too surprised if some of these are held by some near acquaintances and will evaporate in a puff of legal cigar smoke . Even Seanie is apparently now telling Anglo that the security on the loans he (Anglo) gave to himself is as good as toilet paper. Meanwhile this evening we have a NOTE FROM BEIJING telling us that Fingleton’s ‘ Fuck You Bank’ will now cost 4 billion and not 2.7 billion that we were told last month. That is 1.3 billion more than last month plus the cost of Honohan’s trip to China to clear his throat.
    Meanwhile we are borrowing €20 billion per annum just to keep the rest of the show on the road.
    The situation is virtually out of control.
    But the ME FIRST GENERATION of Fianna Fail are happy to ask the the next generation to pay and the generation after that and the generation after that. As you say Bock, there must be a hell of a lot of secrets in Anglo.

  9. thanks gary. actually remember it now. is anglo a society for builders perhaps? i’m convinced that were not bailing out anglo or any other bank for that matter. we’re bailing out pension and investment funds from across europe and the world.

  10. Gerryo your welcome. However it is not just the pension funds etc. we are bailing out it is the twenty something’s that run the investments at a huge cut that make them Billionaires before they are thirty that we are bailing out. Normally a bad investment would see them having their arse kicked off the top floor in Manhattan . But with Ireland involved ,no problem the Government will bail them out.
    Bock of course it is a scam! What are we going to do about it? Sweet Fuck all! that’s what, now just lie back and take it like a good little boy. Just like all the rest of the compliant little people do.

  11. Gary — Do you have any positive suggestions on this or is it all doom? I must confess that I’m becoming depressed by your unrelenting misery. Is there any possibility you might point the way to a better future instead of simply telling everyone how dreadful things are going to be? If not, I think I’ll just slit my wrists.

    Come on. What are your ideas to fix the problem? Do you have any?

  12. Bock WOW! My system was showing ten minutes to send when I received your reply impressive! I am not negative. I believe in the power of the People. The problem may be ,in my opinion, is the People no longer believe in themselves . The T.D. will fix the road NO the T.D. will keep the Hospital open NO the T.D. will fix the Banks NO.I am trying in my own small way to change the current situation. I shall not elaborate for fear of attracting the wrath of the compliant. The current system is utterly corrupt and must change. I doubt it shall do so in my lifetime. I shall continue to try.
    (good to see I am back in the Box)
    As Jean Paul Sartre might have said suicide? Well I know that I can do it so what is the point?

  13. This is how the heroes of 1916 must have felt. An entire nation whingeing about the British, but most of them too lazy or too indifferent to get off their arse and do something about it. Sure they would write poems about it, or complain in the Shebeen to each other, but do something? Christ no, that would take effort.

  14. Positive solutions:

    Get the parasitical financial elite off our backs. This has to be done globally, but we can make a start here. Their assets i.e. the debts we have been forced to take on are only as good as the willingness to repay. Without that willingness they vanish in a puff of smoke.

    Make a pact with yourself and those over whom you have some influence not to vote for any party that does not explicitly have as the first item on their agenda the ‘restructuring’ of the private debt taken on by the bank guarantee.

    Do all you can to destabilise this government and bring it down ASAP.

    Imagine a different economic system, run for the benefit of all, rather than a small elite. Other worlds are possible.

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