Government to take a two year 'pension holiday': SBP

[kerrynorth]

The government looks set to suspend contributions to the NPRF for two years as borrowing to play in volatile markets does not seem to be a good idea at the momemnt. Legislation is being drafted to give affect to the two year suspension. This will reduce government borrowing by €1.6-2billion per year. However, this will not affect the ECB's maximum 3% of GDP borrowing limit as the General Government Balance (GGB) method of calculation already makes credit allowances for the NPRF contributions. The NPRF lost 12% of it's value in the first 6 months of the year.

[BodyofEvidence]

The government looks set to suspend contributions to the NPRF for two years as borrowing to play in volatile markets does not seem to be a good idea at the momemnt. Legislation is being drafted to give affect to the two year suspension. This will reduce government borrowing by €1.6-2billion per year. However, this will not affect the ECB's maximum 3% of GDP borrowing limit as the General Government Balance (GGB) method of calculation already makes credit allowances for the NPRF contributions. The NPRF lost 12% of it's value in the first 6 months of the year.

Thats an incredibly stupid and shortsighted idea. First, all markets are always volatile ; second, markets tend to be less volatile in bear than bull markets ; third, when values are low thats a time to buy, not to stay out of the market. This sort of idea is shorttermisim in the extreme. AAARRRGGHHH, whos advising these idiots!

[hiker]

First, all markets are always volatile ; second, markets tend to be less volatile in bear than bull markets ; third, when values are low thats a time to buy, not to stay out of the market.

Where have you been for the last six months?

[cyberianpan]

This is extreme dim-wittery

If you decide to invest in stocks it's a long term decision, you stay with it and over 5,10,15 years it bears fruit

Deciding to dip our toes in and out of the market is dumb

As others have pointed out now may be the time to buy

cYp

[Kite]

Did the Government “repay” the money our horse loving Minister raided from the pension fund years ago, before undermining the future of Joe public yet again?
It would be more in their line to look at their own pension trough, a trough that would excite the most obese pig, before telling us to prepare for more belt tightening while stuffing their own bellies inside their Charvet shirts.

[Catalpa]

It can only be that the Government has reached the conclusion that the Stock Markets are banjaxed for the next couple of years at least and there is no point throwing good money after bad...

I think it is prudent decision making myself.

[BodyofEvidence]

First, all markets are always volatile ; second, markets tend to be less volatile in bear than bull markets ; third, when values are low thats a time to buy, not to stay out of the market.

Where have you been for the last six months?

Dont follow you Hiker? Iv been here....and there...

[cyberianpan]

It can only be that the Government has reached the conclusion that the Stock Markets are banjaxed for the next couple of years at least and there is no point throwing good money after bad...

I think it is prudent decision making myself.

Then why don't they start selling short ?

Running away and doing nothing is making an investment decision in and of itself.

cYp

[hiker]

First, all markets are always volatile ; second, markets tend to be less volatile in bear than bull markets ; third, when values are low thats a time to buy, not to stay out of the market.

Where have you been for the last six months?

Dont follow you Hiker? Iv been here....and there...

This bear market has been extremely volitile over the last six months or more. Its been falling and no one knows when its goinfg to stop falling. It would be prudent at this stage to cease "borrowing to invest". We are still invested anyway and we can always switch our current investments but its a no-brainer to quit getting loans for this kind of thing.
Who's to say that loans are no longer available to the state for this kind of activity?

[johnfás]

Seems prima facie like a fairly imprudent decision. Any major investment like this, once taken off the boil, will be very difficult to heat back up again. I would argue that it is alot easier to continue a 1 billion euro spend than to commit to a new one or a resurrection of one.