Time to increase that 12.5% corporation tax. It's as hackneyed a Fianna Fail mantra as Lehmann Brothers.
Do that and the multi nationals will start looking elsewhere......we have to default now....there is no other option and burn the senior bond holders...they gambled...why should we pay....lots of us never saw a tiger at all.
what will happen if ireland defaults?
Unbelievable - we should have sent Gogartys daughter in to negotiate!!!!
I think the government leaked this rate to get the conversation out there. A lower rate circa 5% will probably be announced later next week.
I think the government leaked this rate to get the conversation out there. A lower rate circa 5% will probably be announced later next week.
This post will be deleted if not edited immediately - just had a thought, the Shinners are begining to sound plausible at this stage :-(
+1 and may the FFers rot in hell for pushing us towards the arms of the Shinners who still have a strong whiff of sulphur about them!
Roy
I agree, default is the only option. At a debt level of close to €200bn by 2014, 6.7% will be €13bn per annum in interest. If you heard someone tell you that they spend 33% of their income on an interest only mortgage you'd tell them they're mad. This type of excessive amount of debt is exactly what caused this crisis, going deeper into the doodoo will only make things worse. When you're in a hole stop digging!Do that and the multi nationals will start looking elsewhere......we have to default now....there is no other option and burn the senior bond holders...they gambled...why should we pay....lots of us never saw a tiger at all.
Why would banking collapse? Did this happen in Russia or Argentina when they defaulted? Banks can be wound down and sold off in an orderly fashion. They are not even zombie banks anymore, they are corpse banks, and the sooner they are privately taken over the better.Don't forget if we default we have to live without any bailout, our banking system would callapse overnight - all major companies would get screwed.
Increased taxation does not equal a budget cut. Ireland would recover in a very short period of time if it defaulted similar to Argentina, who eventually paid 30 cent on the dollar, and the budget was cut, as in actual less spending, by 50%. Gasp, surely that is impossible and would throw us into the stone age? Absolutely not. Very few people ever talk about the the US depression of 1920. When president Harding entered office in 1921 he cut the federal budget by 50% over two years and decreased taxation. By the end of 1922 the economy was not only recovering but booming.(How much do Tesco/Dunnnes/Rhattigans/Microsoft/Elan/etc...etc ... across all industries have on deposit in the current banking system to pay their day to day runnings ???)
If we default and banks go under how can we run the country ??
Also we're currently bringing in a budget to cut 7 Bill - how about cutting 20 Bill overnight ?? where would that put us ?? How many more would end up on the Dole straight away ? How many mortgage holders would go under because the taxes and payments would then be absurd ?
Of course Ireland can default before then. And there is a perfectly workable system in existence to deal with the banks and bond holders, it's called the profit and loss system.The bank guarantee lasts until end June 2011. We can't really default until then. The question is how to keep the country running in the short term until then and restructure the banks so that there is a sytem in place that can withstand any/all possible consequences.
Why would banking collapse? Did this happen in Russia or Argentina when they defaulted? Banks can be wound down and sold off in an orderly fashion. They are not even zombie banks anymore, they are corpse banks, and the sooner they are privately taken over the better.
Increased taxation does not equal a budget cut. Ireland would recover in a very short period of time if it defaulted similar to Argentina, who eventually paid 30 cent on the dollar, and the budget was cut, as in actual less spending, by 50%. Gasp, surely that is impossible and would throw us into the stone age? Absolutely not. Very few people ever talk about the the US depression of 1920. When president Harding entered office in 1921 he cut the federal budget by 50% over two years and decreased taxation. By the end of 1922 the economy was not only recovering but booming.
Of course Ireland can default before then. And there is a perfectly workable system in existence to deal with the banks and bond holders, it's called the profit and loss system.
The guarantee is absolutely worthless as it could never ever be enacted. Freeze all interest payments on bonds, call all bond holders to the table and aim for 30 cents on the euro or less.