Community Views : What’s on the boards today….25th Nov 2010

25th November 2010

The Daily Telegraph

"German plans to push for bondholder haircuts in Europe as soon as next year have triggered a surge in default risk on European bank debt and set off further flight from Spanish, Portuguese and Irish bonds."

balancesheet comments: "Perhaps the Germans have seen what most people with a bit of common sense can see – Ireland and Portugal cannot repay their debts. It all boils down to a simple question: Can an economy generate enough income and tax receipts to pay interest and repay principal? I look at the assets of the Irish and Portugese economies and others and come to the conclusion that they cannot. The bailouts are throwing good money after bad. Default is what is needed. It will have horrible consequences for many but it will allow us to rebuild and start again."

The Daily Telegraph

"Britain's economy is recovering more strongly than in both of the previous recessions and will not be knocked off course by the spending cuts, Bank of England policy maker Andrew Sentance has said."

maxwall thinks: "Andrew, you are the only genuine MPC member with any honesty, integrity and courage. Interest rates, held at this artificial market bucking level, for any longer is going to cause massive problems just down the line. The 'nay-sayers' are all corrupted with vested personal interests."

From the same story in This Is Money:

Paul 21 from London comments: "We need some inflation to write down the clossial public and private debts we have built up in UK. The simple fact is that inflation married with de facto negative interest rates equates to an element of default by stealth. That is a good thing. Savers can afford to take the hit and will do so. UK and US will have Japanese style minimal base rates for this decade."

 The Daily Telegraph

"Ireland bail-out: what economists say about the Irish austerity cuts"

The Motley Fool community are also discussing austerity in Ireland:

Hard Grafter comments: "If the Irish politicians took some responsibility for the mess I would think the Irish might be happier. Like the TD's taking a 50% paycut (they would still be on €150k), and cutting their numbers by 50% as well. Perhaps they have, but have not publicised it."

The Daily Mail are also talking about Ireland's cuts:

Lauren from London says: "The biggest scam I have ever heard of. Cry babies they are bankrupt, take the money from the tax payer, cry more babies, get more money, cry more babies, get more money…etc etc. They are all complicit in it, the politicians, the bankers, the wealthy, and no one is prosecuted. And still no revolution. Something wrong in this society. Try to do the same, saying you can't afford your taxes, your mortgage, what either. You will be dragged in the front of the court before you can even blink an eye, you will be sent to prison, you will be squeezed until u die of starvation."

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