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View Full Version : Ireland breaks up Anglo Irish as EMU debt jitters return



HardlyPeeved
09-08-2010, 10:36 PM
Ireland is rapidly devolving to Iceland, and will probably break off from the EU.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7990228/Ireland-breaks-up-Anglo-Irish-as-EMU-debt-jitters-return.html


Ireland is to break up the nationalised lender Anglo Irish Bank, hoping to end a disastrous saga that has shattered confidence in Irish finance and left taxpayers with daunting debt.


The move came after yields on Irish 10-year bonds rose above 6pc for the first time since the launch of the euro. Spreads over German Bunds rose to a record 379 basis points.

Greek debt was pummelled after National Bank of Greece, the country's top lender, announced plans to raise 2.8bn (2.3bn) in fresh capital, raising concerns that Greek lenders are taking precautions against the risk of debt restructuring on their holdings of government debt.


Credit default swaps (CDS) for Portugal, Spain, Italy, and Belgium have all surged this week.


"Neither the European sovereign debt crisis nor the banking sector crisis has been resolved and both continue to mutually reinforce each other,"


A column by Fintan O'Toole in the Irish Times said the problem had become too big for Ireland after rescue costs escalated to 25bn, and possibly higher. "The choice is now stark: do we go on being "good Europeans" at the cost of destroying our own society or do we become "bad Europeans", lose the trust of our European partners, but save ourselves?"

Got Goldies
09-08-2010, 10:44 PM
Many people don't understand the ramification of mortgage default. Its a stack of dominoes that head straight to the bank balance sheets. The news story said 80% of this bank will be shut down.