Bail Out For Southern Ireland.

[Everhelpful]

Am I missing something here? This Country has no money,allegedly,so where is the 7 Billion Loan to Southern Ireland coming from?

[Whickerman]

Don't kid yourself mate - I live in Ireland and i can tell you the UK govt are doing nothing but looking after your interests. UK banks snapped up many Irish banks and building societies; my own mortgage was with First Active, bought up by Ulster Bank which was in turn bought by RBS. if the economy here sinks the UK banks - owned by you, the taxpayer, will be left tens of billions out of pocket.
Add to that the fact that the two main banks in Northern Ireland are Irish banks AND the fact that we buy more of your exports than Russia, China and India combined, you can see why it's in the British interests to keep Ireland afloat.
As to where it's coming from - even if the UK borrows it the money will make you a profit as it'll be paid back at high interest.

[DTCwordfan]

8% plus - I look forward to my dividends.....and apparently there are some excellent investment buys to be had on buying Irish stocks at the moment.........yum

[Whickerman]

actually - all joking aside - anyone with cash should buy up land and property now. Not businesses mind - Irish business is actually doing quite well, on a par with the UK.

[pjgriffo]

you are probably missing several things, but do not ask me to explain it!

Even 7 billion in the UK context is probably fairly small beer, but probably very signif to Ireland. Uk is about 20 times the size of S.Ireland. Anyway its a loan at I presume a commercial rate of interest.

[Whickerman]

I'd say Brian Cowen would give his left testicle for a commercial rate.

[DTCwordfan]

botox...couldnt resist that one

[DTCwordfan]

read bollxocks to be closer to what I really wrote

[Buenchico]

Everhelpful:
Please read my answer (and follow the link to Robert Peston's blog) here:
http://www.theanswerb...e/Question960740.html

Chris

[jake-the-peg]

Yes you are missing something!

We will borrow it and lend it to Ireland at a profit

As whickerman said the UK banks are owed a lot of money by the Irish ones.

You didn't think this was charity did you?

[R1Geezer]

who says the country has no money?

[anotheoldgit]

Who was there to bail us out?

[Zeuhl]

<<Who was there to bail us out? >>

it was the IMF wasn't it?

Because of our relative stability they and are lending us money at a low rate. That is why we can borrow and then lend to Ireland and still turn a profit on the deal.
.

[rov1200]

Maybe they haven't got any printing presses in Ireland. We have now learnt QE is a con which prints more money so reducing the value of the currency. We are all poorer as a result.

[Zeuhl]

The whole financial system and international capitalism is a con.
That is the world we live in.
Even Mervyn King says it's bonkers but until someone comes up with a better system ...
.

[T&S]

Apparently Bob Geldof has just announced there will be a fundraising concert for Ireland to be held in Ethipoia this Christmas.

[jake-the-peg]

QE is a con?

We are all poorer as a result?

Well those exporting aren't it makes our goods cheaper and keeps British firms in work!

[Zeuhl]

But the pounds we all have in our pockets are worth significantly less - it's like gradual stealing!
.

[DTCwordfan]

Pound devaluing/worth less??? - its been gradually gaining value against a basket of leading currencies sinc the coalition took over - though today I dont know whats happened with Kim Jong(very)-il(I) throwing his toys out of his bath towards that South Korean island.....usually folk head for the dollar and gold hills in such times.