Spain rescued - by Spaniards. Should Ireland take notice?

[feargach]

Spain has just sold 4.56 billion euros of short-term bonds at auction. France, Spain Sell EU12.5 Billion of Bonds as ECB Stokes Demand - Businessweek Average yields were below 4%. The rumour mill is clearly signalling that the biggest buyers were probably Spanish banks.

This is a big deal. Spain's unemployment is higher than Greece's, but they are now almost guaranteed to be clear of any immediate Irish-style debt crisis for the next several years. That's a major step forward.

Ireland needs to see if she can pull off a similar trick. There are over €500bn in Irish bank deposits. If 4% of that were channeled into our bonds, in the same way Spain seems to have done, we could successfully fund the economy without implementing the self-defeating austerity that's strangling the economy today.

Ireland badly needs a respite, and Spain is showing how to get it done. We need to borrow from ourselves, kick out the troika, and launch a real, effective, well-funded jobs policy.

[Dylan2010]

been done mate, Irish banks are buying Irish gov. debt.

[southwestkerry]

Spain has just sold 4.56 billion euros of short-term bonds at auction. France, Spain Sell EU12.5 Billion of Bonds as ECB Stokes Demand - Businessweek Average yields were below 4%. The rumour mill is clearly signalling that the biggest buyers were probably Spanish banks.

This is a big deal. Spain's unemployment is higher than Greece's, but they are now almost guaranteed to be clear of any immediate Irish-style debt crisis for the next several years. That's a major step forward.

Ireland needs to see if she can pull off a similar trick. There are over €500bn in Irish bank deposits. If 4% of that were channeled into our bonds, in the same way Spain seems to have done, we could successfully fund the economy without implementing the self-defeating austerity that's strangling the economy today.

Ireland badly needs a respite, and Spain is showing how to get it done. We need to borrow from ourselves, kick out the troika, and launch a real, effective, well-funded jobs policy.

Irish banks saving Ireland fills me with morbid thoughts so it does.

[newport2]

Ireland needs to see if she can pull off a similar trick. There are over €500bn in Irish bank deposits. If 4% of that were channeled into our bonds, in the same way Spain seems to have done, we could successfully fund the economy without implementing the self-defeating austerity that's strangling the economy today.

That 4% would be €20billion. That would bridge our budget deficit for one year. What then? Do you mean 4% on a yearly basis?

[sport02]

Spain has just sold 4.56 billion euros of short-term bonds at auction. France, Spain Sell EU12.5 Billion of Bonds as ECB Stokes Demand - Businessweek Average yields were below 4%. The rumour mill is clearly signalling that the biggest buyers were probably Spanish banks.

This is a big deal. Spain's unemployment is higher than Greece's, but they are now almost guaranteed to be clear of any immediate Irish-style debt crisis for the next several years. That's a major step forward.

Ireland needs to see if she can pull off a similar trick. There are over €500bn in Irish bank deposits. If 4% of that were channeled into our bonds, in the same way Spain seems to have done, we could successfully fund the economy without implementing the self-defeating austerity that's strangling the economy today.

Ireland badly needs a respite, and Spain is showing how to get it done. We need to borrow from ourselves, kick out the troika, and launch a real, effective, well-funded jobs policy.

Are Spanish banks immune from the 1% credit lines coming from the ECB?

[toxic avenger]

The ECB is lending yonks of money to domestic banks to buy up their country's bonds since the new head took office. It's likely that is why the identity of the buyer of rollover of Irish debt last week was kept quiet.

[Garland Names the Skies]

So state owned banks would be lending to the state at a rate of 4% providing funds to recapitalise state owned banks

[Dan_Murphy]

Ireland needs to see if she can pull off a similar trick. There are over €500bn in Irish bank deposits. If 4% of that were channeled into our bonds, in the same way Spain seems to have done, we could successfully fund the economy without implementing the self-defeating austerity that's strangling the economy today.

But wouldn't we need to pump 8%, then 12%, then 16% and so on? What happens when that number becomes too great?

[sic transit]

ECB lends banks really cheap money-> Banks buy country bonds at more favourable rates-> country is financed for another while. Repeat.

[Panopticon]

The rumour mill is clearly signalling that the biggest buyers were probably Spanish banks.

Good basis for economic policy-making. The rumour mill has never caused us banking problems in the past.