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Posts tagged ‘Business and Economy’

Obama’s new jobs Stimulus

 

If you think things are bad in the US. Here in Ireland our government
have abandoned the unemployed, They have spent billions in bailing out Bankers
and developers .Not one single penny has been spent on jobs creation ,every
penny raised in income taxes goes to pay the interest on new debts created by forcing the private gambling debts of the Banks on to the ordinary taxpayers .There has been no Jobs stimulus, we have instead higher taxes and new stealth taxes, cuts is social welfare and cuts in healthcare and higher salaries and golden handshakes for the incompetent unelected insiders (Top civil servants) running the country. The government are doing everything to encourage people to emigrate so they don’t have to
pay job seeker’s allowance to them .

All we have to look forward to is more of the same from  the clueless politicians spouting the same trip in their usual condescending manor whilst they protect their own backs from their own backstabbing party hacks who dream of taking away their Dail seats in the next election.

At least Obama is going to spend a few dollars on job creation in the US !

Derek Quinlan’s art collection to be sold by NAMA

By Namawinelake

In terms of transparency in engaging suppliers of services, NAMA seems to be burrowing itself deeper and deeper down Alice in Wonderland’s rabbit hole. Whilst the agency started out by advertising all contracts for services and there was, by all accounts a rigorous procurement process to appoint an army of professionals, it seems these days that the agency is satisfied with a brief beauty contest before making appointments. Rumour has it that agents HT Meagher O’Reilly has been appointed by NAMA to let all the commercial property under its control in the south Docklands in Dublin.

full artical here at source:http://namawinelake.wordpress.com/2011/08/18/nama-appoints-company-to-sell-derek-quinlan%e2%80%99s-art-collection-a-company-which-the-european-commission-found-had-operated-a-cartel-which-defrauded-art-sellers-out-of-290m/

How much has NAMA lost on its investment in Irish government bonds?

By Namawinelake

At times you have to have sympathy for NAMA. As an asset management agency whose main assets are properties located in Ireland, the agency has really been up against it to achieve success since its inception in late 2009. The collapse in banking and credit, the deflation of an incredible property bubble, the abolition of Upward Only Rent Review commercial leases for new leases and the threatened retrospective abolition for old leases, an economy which has shrunk or at best is growing academically, the absence of confidence – it really has been a toxic environment for a business whose main purpose is to make money out of property and property-related loans and you can’t blame NAMA for much of the above.

see full article at source : http://wp.me/pNlCf-1GY

David McWilliams has posted a new article, ‘ECB is merely phoning it in’

By David McWilliams

Walking around Dublin these days, it appears that everyone is on the phone.

It is impossible to stand in a queue or in a public space and not be amazed by the amount of gadgetry and texting and chatting that is going on.

This communication business continues to grow in all sorts of unanticipated ways as more and more people all over the world get connected.

For example, did you know that every minute of every day, 35hours of content are uploaded to YouTube?

It is important for those of us who watch the economy to be aware of what is going on in mobile phone companies.

Reading the economic tea leaves is a crucial part of the economics profession, and most economists have a favourite set of figures.

Mine is mobile phone company results.

Details in a mobile phone company’s accounts tell us more about what is going on in an economy than other more commonly used leading indicators. Looking at the right figures to predict the next moves in the economy is crucial because after all what use are economists if they can’t tell you what is likely to happen in the future?

You’d be pretty dismissive of a doctor who couldn’t diagnose you in advance, but could tell you on your deathbed that you had a fatal disease.

see full article at source here : http://www.davidmcwilliams.ie/2011/06/28/ecb-is-merely-phoning-it-in

Credit default swaps and treason in Greece

The revelations of Credit default swaps and treason in
Greece should start to flash red lights here in Ireland as there are enormous
movement in Irish credit default swaps spreads. With well placed insiders are
able to make huge money and nobody is calling for a public enquire, these financial
instruments of mass destruction are been used and nobody knows who’s benefiting
from them!

Are we not going down the obvious road to default because of
a conflict of interest by those that are charged with this decision??? How do
we know that special interests are not been looked after???

Can we thrust our politicians? I know what my answer is !

AIB has already defaulted see here

The International Swaps and Derivatives Association (ISDA) yesterday said that   a “credit event” had occurred on Allied debt, meaning the bank has   effectively defaulted on its debt, a situation the Irish government has gone   to extreme lengths to avoid.

Credit default swaps (CDS) sold on Allied subordinated bonds and, crucially,   its senior debt, have been activated by the decision of the ISDA   determinations committee that decides whether a borrower has defaulted.

The decision by the committee, which is made up of 10 major banks, follows the   announcement earlier this month by the Irish High Court of a “subordinated   liabilities order” that changed the terms under which junior debt in   Allied was originally sold, forcing holders of the bonds to accept an   extension in the maturity of the debt to 2035.

Allied had already missed a coupon payment on its Lower Tier 2 debt. However,   changes in the law enabled the bank to avoid being forced to be formally   placed in default.

For the market, ISDA’s decision renders this move largely irrelevant as it   means the bank will be categorised as in default in the eyes of investors.(source http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8590428/Allied-   Irish-Bank-has-defaulted-says-derivatives-body.html  )

Wake up,stand up,fight back

The Irish nation is bin swallowed up and something else is emerging, a mass of people who have lost their soul and proud culture. We are becoming props for multinationals that have placed themselves and their products in place of our precious heritage. We are living in a country where the people’s representatives, support this wholesale destruction of our real culture were been Irish is to hold a glass of beer aloft at a counter in a pub. We are more than this; the best way to destroy a nation is to destroy its culture, its people’s sense of national identity. Is it any wonder we have 60,000 of our young leave the country every year? Our government tells the world we are no more than consumers for a multinational drinks company .

They proudly place themselves before the TV cameras of the world as the proclaim this accomplishment .The only success this and previous government have had is in driving away our nations children. So that they do not have to pay them the dole .

Driving around the west of Ireland I hear the cries of Ireland’s lost generations and I feel the sadness seep out of their shallow graves, sadness fills the air as dear old Ireland appears before me in rags once again! In the distance I hear the laughter of the pampas rueélite pronounce the latest austerity measures!

Wake up,stand up,fight back.

Ireland’s property market (Ronan lyons latest posting)

By Ronan Lyons

The spectacular and painful bursting of Ireland’s property market bubble since 2007 has brought to an end what one could term Property Market 2.0 in Ireland. The country’s “Property Market 1.0” was built in the late 19th and early 20th centuries, when successive London administrations made huge amounts of credit available at preferential interest rates so that tenant farmers could buy their plots. Throughout the 20thcentury, the urban poor remained as tenants while only the tiny but growing urban middle class took part in any sort of mortgage market.

“Property Market 2.0” emerged in the 1980s and 1990s, as competition among banks and building societies brought mortgages to the masses. Barely had this transformation time to take hold, though, then Ireland was a member of the Eurozone, with inappropriately low interest rates and a practically infinite supply of credit from global credit markets. Along with lax regulation of the banking and building sectors, the result was perhaps the biggest national property market boom and bust of the modern era.

Learning from the (recent) past

What will “Property Market 3.0” look like? As yet, nobody knows. It is safe to guess that, at least in its early days, it will be haunted by what has just happened. The worry is that initial prudence will eventually decay away, as institutional memory fades. The nightmare scenario is that at some point in the future, the 2020s or the 2060s, the lessons we’ve learnt are thrown away with a simple “Well, that could never happen now/This time it’s different/Insert self-deception here”.

So what can we do? An idea I’ve explored at length elsewhere is the importance of information. Having an official real-time database of transactions prices doesn’t just help people like me churn out research papers. It gives normal people the information with which to make informed decisions about whether to buy or rent and for how much. And in doing that, it actually reduces the chances of a bubble as bad as the one we’re recovering from now happening again. The national house price register looks like it is now government policy, so today, I’d like to focus on a couple of other ideas.

full article at source: http://www.ronanlyons.com/2011/05/31/ideas-for-building-property-market-3-0/

Comment:

Ronan Lyons has posted a new on the Irish property market

However I do not agree that home ownership in Ireland should have a significant impact of a future Irish economy as I am advocating a totally different approach to home ownership in Ireland.

Firstly I do agree, that there should be no variable interest rates on home mortgages .But I also believe that the Banks should not be involved in giving out such mortgages in the first place .I do not accept that home ownership should be subject to the commercial turbulent system  we currently are enslaved to. No we need to have a system administered by the post office and credit unions where by a citizen can take out a fixed term loan at a fixed low interest rate of not more that 2.5%.This then can be passes on to siblings of paid off with a adequate insurance police in place, this insurance should also set up by the government. The point is that home ownership should not be subject to commercial dictates whatsoever .However it will be necessary to have some rules for example the mortgage amount to be taken out will only cover that of an average price home within the state and so if the price of a property is higher then the buyer must have the difference amount themselves Banks will not be able to top up the amount and take in as security the deeds of the property as they will be excluded from doing so.  To be clear I am talking about home ownership and not commercial buildings or business .The citizens will only be allowed to get one and only one of these mortgages, Moving up the property ladder will be deemed as a commercial move and thus subject to a commercial bank mortgage. This government backed move will only be for ones first home.

This idea may have some more thought to be invested in it but I think it is well worth a shot.

The bottom line is, home ownership should not be subject to any commercial interests but cater for a social necessity.

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