Relevant and even prescient commentary on news, politics and the economy.

Joachim Voth Tells the Truth and Shames the (German) Devil

Echoes of Japan, echoes of the Great Depression. One of the few economists who knows history closes a post by presenting the proper context for the choices: A quick exit [by Ireland, from the Euro] may still be better than a decade of slow, grinding deflation combined with Zombie banks and Zombie household balance sheets […]

Can Someone Please Explain Germany’s Reputation for Fiscal Conservatism to Me?

Assume I believe in risk-adjusted return on capital. That is, I don’t buy a bond yielding 12% instead of one yielding 6% without first considering that the yield difference is affected by the likelihood of Principal return being lower. (But I will buy the 12% bond if I believe the risk premium is too high […]

Ireland is Bankrupt…a letter from an Irish citizen

A letter sent from Ireland (updated): For less than what the US spent to save AIG, a corporation, with relatively easy terms; a country sinks below the financial waves. TBTF reaches across the ocean. As posted by Zeus-boy, his comments on his homeland of Ireland. (introduction by run75441) Ireland is Bankrupt Herman Van Rompuy, President […]

Irish Bailout–impact on taxes uncertain

by Linda Beale Irish Bailout–impact on taxes uncertaincrossposted with Ataxingmatter As plans for the $100 billion bailout of the Irish economy and banking system by the European Commission, International Monetary Fund and European Central Bank continues, Ireland’s downtrodden prime minister (who will call elections after the budget is finalized) has said that it “will not” […]

Ireland Will Apply for Bailout Package

The NYT notes this morning: Ireland Will Apply for Bailout Package Irish finance minister Brian Lenihan confirmed today thatIreland had formally applied to Europe and the InternationalMonetary Fund for a bailout package. He would not give an exact figure but said the amount wouldbe in the tens of billions of euros and that the final […]

Ireland: the battle against "markets"

by Rebecca Wilder Ireland: the battle against “markets”crossposted with Newsneconomics Is it the sheer size of its contingent liabilities that is driving Irish spreads? Finance Minister Brian Lenihan thinks so via the Irish Independent: “There is no doubt in my mind that while the announcement on the banking sector in September was not disbelieved by […]

According to bond markets, Ireland is not yet Greece

A few articles regarding the bond crisis in Ireland: The Irish Mess (IV)ECB buying of Irish bonds ‘vital’ supportThe world backs away from Ireland, Spain, PortugalIn keeping with Halloween, here’s a scary oneEU leaders trigger another bond market crisisIreland fifth best place to live (a separate issue, of course) Yves Smith’s article (first link) is […]