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Posts Tagged ‘creditcrunch’

Interesting article from the Financial Times by Wolfgang Munchau. He points out that Ireland isn’t the biggest danger to the eurozone – instead it will be bailed out by the EU – instead, the biggest threat will be from Eastern European countries – such as Hungary.

Hungary is a strange one – most mortgages are in Swiss Francs , lent out by Austrian banks. Their total exposure to the eastern market amounts to 80 per cent of Austrian GDP – so if Hungary defaults, it won’t be Hungary thats affected – it will be Austria.

“A central and east European crisis is therefore a systemic event for the eurozone as well. One should not therefore treat this as someone else’s problem – because it is not.”

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Nuke winter

Our economy is facing a post nuclear winter – so writes Kevin Myers, who also calls for a government of national unity.

“Bertie Ahern apparently didn’t like being roughed up the other day. I’ll bet. But we’re not far from government ministers being attacked in the street: or even, from that evil hour when some happy lunatic takes up a gun — and we’ve no shortage of either.

That means politicians must act now. They must call in trade unions and read them the Riot Act, and if necessary invoke special powers to prevent street disorders. They must outlaw strikes in the public service, and introduce special finance laws that mean that not merely shall super-levies be paid by public servants to underwrite their lavish pensions, but existing pension rights shall be forfeit for anyone who sabotages the future of the state through industrial action.

Draconian? Oh believe me, not half as draconian as the Stalingrad that awaits the Irish nation, unless we get our act together now. Either we choose where to have savage cuts, or the cuts themselves will choose where to strike us. There is no alternative. None. Only a Government of National Unity can embark upon such a task, and dear Christ above, we have so little time left; so little time. ”

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National Emergency

A disturbing article in the Indo today – 10 billion floods out of the country , in the wake of the Anglo-Irish banking scandal. And it has left the country in a mere seven days.

Is this the start of a run on Ireland , as investors seek safer havens elsewhere?

The Nation faces ruin as our TDs squabble is another Indo headline , detailing the calls for a government of national unity to deal with Ireland’s growing crisis.
Senior business figures , via intermediaries have been engaged with political leaders over the past week, apparently to press home the idea of a national unity government.

One source in the Department of Finance is quoted as saying “This flight of capital, if it continues, is heading us in the direction of economic insolvency. It is truly frightening”

A source “close to the government” states that “An all-party government, drawn from the main parties for a three-year period, with the possibility of extending it, is what is needed. A new national government would need some exceptional powers for at least three years to insulate it against the unpopularity of the decisions that have to be made.”

One wonders what these “exceptional powers” are. Are they hinting at a national emergency?

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Anglo Irish The Sunday Times has named four of the Anglo Irish Golden Circle today in an article over here.

The four have been named as Gerry Gannon, Joe O’Reilly, Seamus Ross and Jerry Conlan. Either they or their companies now owe Anglo Irish Bank several billion euro.

The Times also adds “The bank admits it is likely to have to write off €300m of the money it loaned the 10 investors. Because Anglo has since been nationalised, this loss now passes to the Irish taxpayer.”

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