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Thread: Financial Times - The bailout may have been required even if the banks had not failed

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    Default Financial Times - The bailout may have been required even if the banks had not failed

    Ireland’s woes are more than a bank crisis - FT.com


    Between 2008 and 2015, three-quarters of the increase in Ireland’s net debt will be accounted for by the budget deficit, as opposed to recapitalisation of its banks. In other words, the bailout may have been required even if the banks had not run aground.

    A “social partnership” model, in which unions, employers and the government sat down to agree pay deals, enabled the public sector to expand 35 per cent between 2000 and 2008. A secretive “benchmarking process” was set up that awarded public servants an average 32 per cent pay rise between 2003 and 2008, with only lip service paid to reforms.
    It is well worth a read an highlights the point that it was greed and lousy politicians that got us where we are.

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    Surely it was the banking collapse which made the markets very nervous about Ireland?
    I have no money, but I love my life.

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    Quote Originally Posted by Mr. Magpie View Post
    Ireland’s woes are more than a bank crisis - FT.com







    It is well worth a read an highlights the point that it was greed and lousy politicians that got us where we are.
    It was Lehmans wot done it.

    If ever a lie was exposed and here we are with high taxes and very poor and difficult to access Public service. And to add insult to injury we have FF rising in the polls.

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    Quote Originally Posted by ShoutingIsLeadership View Post
    Surely it was the banking collapse which made the markets very nervous about Ireland?

    Read this sentence over and over, and over, and over...and then read it some more.

    Between 2008 and 2015, three-quarters of the increase in Ireland’s net debt will be accounted for by the budget deficit, as opposed to recapitalisation of its banks. In other words, the bailout may have been required even if the banks had not run aground.
    Spend was, and still is, out of control.

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    Politics.ie Member Howya's Avatar
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    Quote Originally Posted by ShoutingIsLeadership View Post
    Surely it was the banking collapse which made the markets very nervous about Ireland?
    I think the banking collapse was the trigger that focused attention - and what they saw scared the hell out of them - the banks were just the tip of the iceberg...cue images of the titanic...
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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    Quote Originally Posted by Mr. Magpie View Post
    Read this sentence over and over, and over, and over...and then read it some more.



    Spend was, and still is, out of control.
    Spending is still 'out of control', yet we will probably emerge from the bailout at the end of the year. Markets are all about sentiment. Markets were terrified of what might happen in Ireland, given that its banks had collapsed.
    I have no money, but I love my life.

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    Quote Originally Posted by Mr. Magpie View Post
    A “social partnership” model, in which unions, employers and the government sat down to agree pay deals, enabled the public sector to expand 35 per cent between 2000 and 2008. A secretive “benchmarking process” was set up that awarded public servants an average 32 per cent pay rise between 2003 and 2008, with only lip service paid to reforms.
    but... but... pay freezes! (excluding increments) ... no more to give.... etc..

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    Quote Originally Posted by Howya View Post
    I think the banking collapse was the trigger that focused attention - and what they saw scared the hell out of them - the banks were just the tip of the iceberg...cue images of the titanic...
    Take a bow Bertie, Cormac McCarthy, David Doyle etc

    The FT mentions lip service being paid to reforms. I recall that one reform mentioned by Damien Kiberd at the time was a commitment to joining 'happy heart clubs'!

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    Politics.ie Member Lonewolfe's Avatar
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    Quote Originally Posted by Mr. Magpie View Post
    Read this sentence over and over, and over, and over...and then read it some more.



    Spend was, and still is, out of control.
    And we've a deficit because we spend more than we take in and we take in less because we have less jobs and we have less jobs because the construction sector sank and the construction sector sank because the banking sector sank.

    Edit - Of course we should never have been so dependent on construction to prop up our economy. But hey, that's all thanks to FF, the developer's party.
    Last edited by Lonewolfe; 4th June 2013 at 12:10 PM.

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    Politics.ie Member nonpartyboy's Avatar
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    we are spending €20bn on social welfare and another €10bn on the HSE, how could that ever have been sustainable ?

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