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Stubborn Ireland Refuses To Yield To European Banking Interests, And Exchange Senior Note Recoveries For Austerity
Contrary to CNBC's interpretations of Irish PM Cowen's speech that the leader may have opened a door, or is "clearing the political space" for a bailout, the Irish Times has a completely opposite take on the speech, one that confirms that no matter how hard Ireland is pushed by Europe and Fed interests to exchange par recoveries to the bankers for austerity, it has so far refused to bend. To wit: "Speaking in the Dail Mr Cowen reiterated that Ireland had made no
application for external support and said there had been some
“ill-informed and inaccurate” speculation about the Government seeking a
bailout in recent days." Which of course is not to say that lack of liquidity will not end up crushing the mostly foreign banks domiciled in Ireland (which has enough funds to hold it through next summer, by which time Portugal, Italy and possibly core countries will have long been bailed out). Nonetheless, we can certainly hope that Ireland stays the course and refuses to betray its public in exchange for a few more years of debt-induced slavery, something which our own monetary authority has no problems doing.
More from Irish Times:
The Government must find a credible, efficient and workable solution to its budgetary problems that will provide assurance to the financial markets and restore confidence and stability in the Irish economy, Taoiseach Brian Cowen said this evening.
The move comes as the European Union (EU), the International Monetary Fund (IMF) and the European Central Bank (ECB) are continuing to work on a solution for the Irish banking sector and ahead of a meeting of euro zone finance ministers, which Minister for Finance Brian Lenihan is attending, in Brussels this evening.
“Given the current market conditions, there have been on-going contacts at official level with our international partners,” he said.
“The Department of Finance is continuously in contact with these bodies. The engagement has been particularly intense in the run up to the budget and the four-year plan.”
Mr Cowen said there was no doubt that financial markets had been extremely volatile over recent weeks and that the State needs to provide them with a level of reassurance.
“This is not an insurmountable challenge and, through working together with our partners in a calm and rational manner, we can resolve these issues and underpin financial stability in the medium and longer term," he said. “It is in all of our interests that we find a credible, efficient and above all workable solution that will provide assurance to the markets and thereby restore confidence and stability."
EU economic and monetary affairs commissioner Olli Rehn confirmed this afternoon that the European Commission was discussing a solution to Ireland's banking problems with the IMF, ECB and Irish officials.
"The real problems are in the banking sector," not with the [Irish] Government, "but these are connected," he said. "We have a very strong focus on the banking sector," Mr Rehn said.
German finance minister Wolfgang Schaeuble said his government would not urge Ireland to seek aid from the EU bailout fund as EU countries should not prescribe to each other what to do amid the sovereign debt crisis. He was speaking in Brussels.
French finance minister Christine Lagarde said that if Ireland requests financial assistance from the European Union it will be provided. "If Ireland needs help, we will give help," said Ms Lagarde.
Minister for Finance Brian Lenihan will attend the meeting at which the recent escalation of euro zone debt market tensions will top the agenda.
The kicker, and the one statement which none of America's corrupt politicians are willing to make:
“I have a job to do which is to ensure we do the right thing by the
country,” said Mr Cowen, who added that Ireland would sit down with its
EU partners and discuss “how we underpin banking and financial stability
in the medium and long term.”
How refreshing it would be if America were to one day to the same.
h/t Geoffrey Batt
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D'oh!
Perhaps they can be the ones to save the financial system. Just to save the Euro farce I truly believe that if Ireland refuses to capitulate they will just hand them the money. What if Ireland simply asks for a restructuring with a haircut? Will they just be shut out of capital markets?
Oh well they can always leave the EU and revert back to the Irish pound. All the IMF & ECB has left are threats. Accepting a bailout would be entirely too unstable for Ireland.
Maybe we'll see the introduction of a new trading bloc: the IreIceLand KronerPound. Instead of gold, it will be backed by fish.
I read a good book on the Iceland banking crisis called "Why Iceland?". Looks like with a little bit of whiteout I'll be reading the sequel "Why Ireland?" shortly. I knew their real estate market was going to blow up when I was in Dublin a couple years ago. The perfectly nice hotel we were staying at was slated for demolition since the land underneath it was "worth" more than the hotel was as a going concern. Shades of Tokyo.
it seems that sooner or later the PTB will not be able to pull a rabbit out of the hat and it is September 2008 all over. When this happens, a simple investor like me will be fleeced in milli-seconds. What will happen to those that are not even paying attention?
Is this the time?
sschu
The EU banks and financial institutions have exposure both public and private 650 billion dollars to the Ireland banks. This is going to be bloody.
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