Eurozone debt crisis

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Euler
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Irish bond yield is sky rocketing at the moment. If this continues the Irish government is going to have problems.

http://www.bloomberg.com/apps/quote?ticker=GIGB10YR:IND
Last edited by Euler on Wed Jun 15, 2011 8:39 pm, edited 1 time in total.
Leven
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I think they already have problems!
Iron
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...not to mention the German government! :)

I suspect that Jim Rogers is right about the Euro being doomed: http://news.bbc.co.uk/1/hi/programmes/h ... 745686.stm

Jeff
Euler wrote:Irish bond yield is sky rocketing at the moment. If this continues the Irish government is going to have problems.

http://www.bloomberg.com/apps/quote?ticker=GIGB10YR:IND
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Euler
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andyfuller
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Been some good moves with RBS the last few days on the back of this, fell about 10% and risen back about 5%
andyfuller
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LATEST:Ireland is in preliminary talks with Eurozone officials for financial support, the BBC learns
Iron
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I bet Germany will end up feeling about the Euro the way Britain feel about bankers!

First, they bail out Greece. Now, it sounds like they're going to bail out Ireland! Who next?!?

Jeff
andyfuller wrote:LATEST:Ireland is in preliminary talks with Eurozone officials for financial support, the BBC learns
andyfuller
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This was published just 30mins before the BBC announcement:

http://www.irishtimes.com/newspaper/bre ... king2.html
hgodden
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It makes me laugh everyone always moaning about bankers and traders, yet no one ever talks about the world banks like the US federal reserve which basically lends countries billions it doesn't even have but just prints whenever it wants and rakes it in with the interest. In America alone over 99% of the 'money' doesn't even actually exist in paper form!

As for the problem with levels of personal debt, particularly in the UK, no one even mentions this anymore, its almost like there's been a media blackout on that issue ever since the credit crunch hit!
Iron
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It's easier to point the finger of blame at someone else than to face home truths. :)

Re: the Fed- If you're referring to QE2, I agree it's bad news. On a pedantic point, it doesn't use its printed money to lend money. It buys back its own bonds from the banks using money created ex nihilo - "out of nothing"! It's not for nothing that some people call QE a Ponzi scheme...

My main concern about QE2 is that it could lead to inflation as investors shun bonds and buy commodities like cotton or oil. If we get increased inflation in the UK, the Bank of England could be forced to raise interest rates to make our government bonds attractive to investors. In turn, that could mean the public have even less disposable income, and it could choke off the alleged recovery completely...

Jeff
hgodden wrote:It makes me laugh everyone always moaning about bankers and traders, yet no one ever talks about the world banks like the US federal reserve which basically lends countries billions it doesn't even have but just prints whenever it wants and rakes it in with the interest. In America alone over 99% of the 'money' doesn't even actually exist in paper form!

As for the problem with levels of personal debt, particularly in the UK, no one even mentions this anymore, its almost like there's been a media blackout on that issue ever since the credit crunch hit!
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oddstrader
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Well put Jeff i fear you may be correct.
Ferru123 wrote:It's easier to point the finger of blame at someone else than to face home truths. :)

Re: the Fed- If you're referring to QE2, I agree it's bad news. On a pedantic point, it doesn't use its printed money to lend money. It buys back its own bonds from the banks using money created ex nihilo - "out of nothing"! It's not for nothing that some people call QE a Ponzi scheme...

My main concern about QE2 is that it could lead to inflation as investors shun bonds and buy commodities like cotton or oil. If we get increased inflation in the UK, the Bank of England could be forced to raise interest rates to make our government bonds attractive to investors. In turn, that could mean the public have even less disposable income, and it could choke off the alleged recovery completely...

Jeff
hgodden wrote:It makes me laugh everyone always moaning about bankers and traders, yet no one ever talks about the world banks like the US federal reserve which basically lends countries billions it doesn't even have but just prints whenever it wants and rakes it in with the interest. In America alone over 99% of the 'money' doesn't even actually exist in paper form!

As for the problem with levels of personal debt, particularly in the UK, no one even mentions this anymore, its almost like there's been a media blackout on that issue ever since the credit crunch hit!
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Euler
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Will the ECB pull the plug on Ireland?

http://www.bbc.co.uk/blogs/thereporters ... ug_on.html
Iron
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I take the rather controversial view that the Beeb should be giving this story a higher profile than Price William's engagement (not that that's not also something that's going to affect millions of people's lives for years to come)...

Jeff
Euler wrote:Will the ECB pull the plug on Ireland?

http://www.bbc.co.uk/blogs/thereporters ... ug_on.html
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CaerMyrddin
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Just my five cents ;)

Ireland isn't big enough to cause Euroland serious problems. Next in line will be Portugal, which is too close to Spain. Spain is a really big economy and the Euro would eventually collapse if Spain gets hit really hard.

Can't really see all that happening but wouldn't bet on it. Portugal is a hard bone as it has massive gold reserves and gold is soaring. Anyway, it's ironic Ireland is in financial trouble after helping it's financial system. Here in Portugal we did the same but fortunately it was a small bank. Anyway, I think that those banks should have been left to bankrupcy. Don't see other kind of companies being helped like that. They gambled their money, they should take the bill.
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oddstrader
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how the decisions of so few cause pain to so many :!:
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