Irish pushback strategy - we get mail | 305 comments (305 topical, editorial, 0 hidden)

Re: Irish pushback strategy - we get mail (4.00 / 2)

IM:

Do you really think a hedge fund - or any private lender woulds give a credit to the irish banks at 1.75%?

The current negotiated rate for the bailout loan is 5.8%, which looks pretty damn punitive to me - and certainly if you want a country to get out of a depression, loan sharking isn't the most effective way to do it.

Unless you're arguing the case for the loan sharks, of course.

I suppose someone has to.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Feb 4th, 2011 at 12:06:38 PM EST
[ Parent ]

Re: Irish pushback strategy - we get mail (none / 0)

Loan sharks? Do you assume the other european countries can borrow at 0%? And the ECB has given the banks - and that means nowadays the irish banks - a lot of money at 1.75%. And you think 1.75% is to high and so the irish banks have a right to default on their debts to the ECB.

Burn the ECB! 1.75% is usury!

by IM on Fri Feb 4th, 2011 at 12:40:19 PM EST
[ Parent ]

Re: Irish pushback strategy - we get mail (none / 0)

FWIW, 1.75% is very close to the current one-year interbank lending rate.

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman

by Migeru (migeru at eurotrib dot com) on Fri Feb 4th, 2011 at 12:43:50 PM EST
[ Parent ]

Re: Irish pushback strategy - we get mail (none / 0)

A point of order: With a properly functioning central bank, a sovereign country can in fact borrow at 0.0 %.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Feb 5th, 2011 at 01:54:45 AM EST
[ Parent ]

Irish pushback strategy - we get mail | 305 comments (305 topical, 0 editorial, 0 hidden)

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