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Thread: Lenihan advised to change the law to allow NPRF buy Government bonds

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    Default Lenihan advised to change the law to allow NPRF buy Government bonds

    Honohan is urging caution but the best advice money can buy is recommending it


    An Irish official told Reuters earlier on Wednesday that Finance Minister Brian Lenihan has been urged by some senior advisers to change the law to allow the country's 24 billion euro state pension fund to buy Irish government bonds.
    "You have to be very careful, knowing that if you want to do that, knowing that you are doing it and recognising that ... any kind of moving between different accounts would be seen through directly by market analysts." Patrick Honohan said
    C.bank cautious on pension fund buying Irish bonds | Reuters
    We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009

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    Not that the NPRF has 24 BN anyway. The 24 BN figure includes the "Directed Investments" and I do not think the banks can return it at the moment

    NPRF - Performance - Second Quarter 2009
    We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009

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    Please god no. This will allow us to throw away the 10 billion or so we have left.

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    Why doesn't the market not want to invest in Irish government bonds?

    Maybe, they'd be better of buying UK or US government bonds?
    We have got as much as we are going to get out of Europe; it is, now, time to leave!
    EUROPA CONVENTUS DELENDA EST!...Whistle out the marching tune.....27

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    Is this the first time such a thing has been suggested? I don't think so, but maybe that's just something I heard...
    Happiness is a dry martini and a good woman … or a bad woman.
    –George Burns

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    If a stockbroker advised you to put all your pension eggs in Ireland's basket - what would you do?
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    When was the law passed that forbid pension funds from buying Irish Government debt? Whoever made that decision didn't know what they were doing. What a stupid decision that was. We have the lowest holding of domestic debt in the EU and probably in the world, if they do purchase the debt the interest payments will stay in the country and reduce our transfer payments abroad.

    Just comparing ourselves to the Japanese who hold something like 98% of debt. We hold 7%.

    Richard Koo made the same point, that foreigners should be forbidden from buying Irish and Greek debt so the problem is contained to that country instead of spreading.

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    Quote Originally Posted by Sariel View Post
    When was the law passed that forbid pension funds from buying Irish Government debt? Whoever made that decision didn't know what they were doing. What a stupid decision that was.
    1. It would be a clear conflict of interest if the NTMA were told to buy Irish government debt.
    2. Diversification is a core principle for competent management of an investment fund. If they were to buy Irish government bonds, it should be a tiny amount. The same people on here bleating about the NTMA not buying Irish government bonds would be the same people bleating if the pension fund lost 50% of its value because of a lack of diversification.
    We have the lowest holding of domestic debt in the EU and probably in the world, if they do purchase the debt the interest payments will stay in the country and reduce our transfer payments abroad.
    Let me see if I get this straight. We will issue debt through the NTMA, paying expensive staff in that organisation and paying expensive fees to primary bond dealers. Another part of the NTMA which itself pays expensive staff will then pay expensive fees to purchase those bonds. Do you realise how crazy this sounds?

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    Ever see a child playing hide and seek, when they cover their own eyes and believe that, because they cannot see you, you cannot see them.

    Our Govt would put our children to shame.

    It is a case of ball burst, game over for this country. FF have eventually managed to destroy the country they stole from dead heroes.

    The people of this country should be ashamed of themselves.

    Electing these parasites despite the long list of corruption foisted upon us. How many FF Taoisigh have to resign in disgrace before we realise that the whole party is corrupt?

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    Red face

    OR.....The NPRF could buy lotto tickets internationally???
    When a man sits with a pretty girl for an hour, it seems like a minute. But let him sit on a hot stove for a minute and it's longer than any hour. That's relativity.

    ALBERT EINSTEIN

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