Worlds Most Risky Sovereign Debt - Ireland is No. 6

[onq]

How one reviewer of economic indicators sees us.

http://www.cmavision.com/images/uploads/docs/CMA_Global_Sovereign_Credit_Risk_Report_Q3_2010.pdf


Under the heading "World's most risky soverigh debt" Ireland was ranked 6th.

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Ireland was the worst quarterly performer in Q3.
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■ The rest of Europe remained fairly flat this quarter. The Ireland/Portugal situation has not been contagious – the Euro strengthening from 1.22 to 1.37 in the quarter indicating the FX market also believe the issues may not be widespread.
■ Germany remains a safe haven for Europe.


I don't see continued cuts in spending without stimulating the economy and investing in research, development and third level education as a viable way forward.

I see it as a way of fuelling a deflationary spiral and making a recession into a depression without any hope of recovery in the medium term.

You can already see the results of the Banks not lending on any high street in Ireland - they have destroyed the recovery.

This needs profound change in approach towards bank lending and government spending and needs it now.

This cannot be allowed to continue, or we will be endlessly cutting costs chasing a shrinking tax base.

I trust this post is short and effective enough for the moderators not to censor it.

ONQ.

 

[TurboTim]

You can already see the results of the Banks not lending on any high street in Ireland - they have destroyed the recovery.

The Credit Review Office was set up earlier this year and has been running
since April 2010.

For the fisrt 3 months it had a total of 35 complaints from customers
who were refused credit. It Upheld 30 of these and Overturned 5.
These numbers reflect that no one is really interested in having an independant
review of bank lending.

There have been several reports on RTE where representatives of SME's
have stated that 1 out of 5 SMEs are having their applications refused.
In a deep recession such as we are this statistic refutes their case rather than supports it.

People who talk of "getting lending back to normal" need to explain what they think "normal"
is. We are in this mess, partly because the banks threw moeny at people like snuff at a wake.
We can't think more risky lending will solve the problem.

 

[Chris]

People who talk of "getting lending back to normal" need to explain what they think "normal"
is. We are in this mess, partly because the banks threw moeny at people like snuff at a wake.
We can't think more risky lending will solve the problem.

100% agree, the solution to credit fueled bubble that lasted 10 years is not more credit. What we neeed especially in Ireland is a period of paying down debt. Ireland has the highest external debt burden per capita in the world and this has to be tackled. I for one don't believe this will be possible without default, but that remains to be seen.