Upcoming Events

National | EU

no events match your query!

New Events

National

no events posted in last week

Blog Feeds

Anti-Empire

Anti-Empire

offsite link Masks Are Nothing but Dress Code Loyalty... Wed Apr 14, 2021 16:36 | J.B. Shurk

offsite link Do You Want a Nice Little Microchip Unde... Wed Apr 14, 2021 15:36 | RT

offsite link Mick Jagger Releases Anti-Lockdown, Anti... Wed Apr 14, 2021 14:36 | Robert Wenzel

offsite link Why Did the US Conduct a Freedom of Navi... Wed Apr 14, 2021 13:36 | Kunal Purohit

offsite link US Halts J&J Vaccine Use After Blood-Clo... Wed Apr 14, 2021 12:36 | Noah Weiland

Anti-Empire >>

Human Rights in Ireland
A Blog About Human Rights

offsite link Poor Living Conditions for Migrants in Southern Italy Mon Jan 18, 2021 10:14 | Human Rights

offsite link Right to Water Mon Aug 03, 2020 19:13 | Human Rights

offsite link Human Rights Fri Mar 20, 2020 16:33 | Human Rights

offsite link Turkish President Calls On Greece To Comply With Human Rights on Syrian Refugee Issues Wed Mar 04, 2020 17:58 | Human Rights

offsite link US Holds China To Account For Human Rights Violations Sun Oct 13, 2019 19:12 | Human Rights

Human Rights in Ireland >>

Lockdown Skeptics

Lockdown Sceptics

Stay Sceptical. Control the Hysteria. Save Lives.

offsite link News Round Up Mon Apr 12, 2021 01:51 | Jonathan Barr
A summary of all the most interesting stories that have appeared about the virus in the past 24 hours ? not just in Britain, but around the world.
The post News Round Up appeared first on Lockdown Sceptics.

offsite link As Vaccine Passports Are Rolled Out Across the World, What Price Freedom? Sun Apr 11, 2021 22:50 | Toby Young
Lockdown Sceptics has published an original piece by our in-house technology correspondent about the roll out of vaccine passports around the world and the dire consequences for personal freedom.
The post As Vaccine Passports Are Rolled Out Across the World, What Price Freedom? appeared first on Lockdown Sceptics.

offsite link UK Nears 40 Million First and Second Vaccine Doses Sun Apr 11, 2021 21:26 | Michael Curzon
A record number of second doses of Covid vaccines were administered in the UK on Saturday, pushing the country closer to a total of 40 million first and second doses.
The post UK Nears 40 Million First and Second Vaccine Doses appeared first on Lockdown Sceptics.

offsite link One in 400,000 Chance of Two Vaccinated People Catching a Symptomatic Infection From Each Other Indo... Sun Apr 11, 2021 16:50 | Michael Curzon
Why have vaccinated people been told not to meet indoors given that the risk of catching a symptomatic Covid infection is around one in 400,000 for two people who have been vaccinated?
The post One in 400,000 Chance of Two Vaccinated People Catching a Symptomatic Infection From Each Other Indoors appeared first on Lockdown Sceptics.

offsite link Britain Sees Fastest Decline in Covid Cases in the World Sun Apr 11, 2021 16:44 | Toby Young
The Spectator has added a new table to its data hub showing the current level of Covid infection in different countries around the world relative to the peak. Britain has seen the sharpest decline in the developed world.
The post Britain Sees Fastest Decline in Covid Cases in the World appeared first on Lockdown Sceptics.

Lockdown Skeptics >>

Voltaire Network

The Recession, Bank Bailout or our Deficit?

category national | eu | opinion/analysis author Tuesday May 01, 2012 09:27author by Sonya Oldham - The People's Association Watchdogauthor email irelandpaw at gmail dot com Report this post to the editors

Does the Fiscal Compact Treaty Deal with the Cause of the Crisis?

Does the Fiscal Compact Treaty Deal with the Cause of the Crisis? What Caused the Crisis? The collapse of the Irish banking system was principally caused by a failure of regulation and the reckless lending practices of the Irish and European banking system.

According to the Banking Enquiry: Financial integration in the euro area allowed banks in Ireland unprecedented access to cross-border funding. As in many smaller EU economies the entry of foreign banks intensified competition in lending. The banks’ ability to borrow cheaply in international wholesale markets created a ‘capital flow bonanza’ which has been observed to markedly increase the likelihood of a banking crisis within the receiving country. This clearly happened in Ireland.

According to the Assistant Director General,  Financial Institutions Supervision, Central Bank of Ireland:

In the 2000s, it is clear that the low ECB policy rate facilitated the growth of property prices in Ireland.

There was also no direct regulation of credit limits, for example through restrictions on LTV ratios.  This meant that Irish households were able to accumulate liabilities more easily than consumers in countries where there was stricter regulation. A contributing cause of the crisis was that bank governance and risk management were weak – in some cases disastrously so.

It appears that internal procedures were overridden, sometimes systematically. There is a need to probe more widely the scope of governance failings in banks and whether auditors were sufficiently vigilant in some episodes.

According to the Banking Enquiry: These supervisory problems must be seen in conjunction with the absence of forceful warnings from the central bank. However, the IMF’s major Financial System Stability Assessment of 2006 also did not sound the alarm.

According to the Assistant Director General,  Financial Institutions Supervision, Central Bank of Ireland: A striking lesson of the global banking crisis is the danger of allowing banks to operate to free market principles within free market economies.

Did Ireland overspend?

According to Paul Murphy MEP: This is simply not the case. In 2007, Ireland’s debt to GDP ratio was 24.8% (Eurostat) - far less than the 60% dictated in the Fiscal Treaty; our general budget was in surplus of 0.1% compared to a target of a deficit of 3%; and our structural balance was estimated by the EU Commission in spring 2008 to be in surplus of 0.2% compared to a target of a maximum deficit of 0.5%. Later on, the structural balance was revised downwards, with the Commission in 2011 saying that Ireland had a structural deficit of 1.4%. So having the strictures of the Fiscal Treaty in place would not have meant we avoided the economic crisis. In fact, the government would have been congratulated on having met the targets so effectively and with such high growth rates! The same is largely the case for Spain and Portugal, which had relatively low levels of public debt in advance of the economic crisis.

How Much is the Bailout Costing?
Bond payments September 2008 to April 2012 were €103.7bn
Bond payments from April 2012 onwards: €40.6bn

TOTAL BOND PAYMENTS (according to Michael Noonan): €144.3bn

THE COST: So far, according to Mr Noonan, the bank recapitalisation is €62.8bn (Anglo/INBS €34.7bn; AIB/EBS €20.7bn; BoI €4.7bn; IL&P €2.7bn). Given that according to Mr Noonan these banks still have over €40bn to pay, there is a good possibility we may have to recapitalise again. Also, this figure does NOT include interest lost on the money taken from the National Pension Reserve Fund, nor the interest we’ll have to pay on the borrowings needed to fund all that recapitalisation.
 
So we can see it was the bank and bondholder payouts that caused our deficit to take a downward spiral so will the Fiscal Compact Treaty be effective?
How can it when it does not deal with the cause of the collapse. The fiscal treaty, if it had been in place, would have been ineffective in preventing this recession as our country was within limits. This is not a crisis caused by government overspending, this is a crisis caused by the lack of financial regulation within Ireland and the EU. Todate we are still living with the moral hazard of the fiscal sector.

According to many leading economists this treaty will in fact make matters worse:

Roubini Global Economics: “In our view, the terms of the fiscal compact require a fiscal adjustment by most Eurozone countries that will significantly undermine their short-term growth prospects. If the treaty is not enforced, it will be positive for Eurozone growth prospects and therefore for fiscal sustainability.”

Vote No to the Fiscal Compact and Demand real solutions to this crisis!

The People's Association Watchdog; www.paw.ie; irelandpaw@gmail.com

Related Link: https://www.facebook.com/groups/133930466736433/
author by defaulterpublication date Wed May 02, 2012 15:59author address author phone Report this post to the editors

Sonya is providing a great information service on this nefarious treaty. Surely Sonya the best option is for the Irish people to follow the example of the people of Iceland and not pay. Basically we need to default. It is not the Irish people's debt so why should we pay the debts of bankers, builders and bondholders.

 
© 2001-2021 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy