So far I note that they’re putting a stop to the NAMA transfers:
P6. “We will end further asset transfers to NAMA, which are unlikely to improve market confidence in either the banks or the State.”
Is this saying they’re going to protect more bondholders…?
P6. “The Government accepts that enabling provisions in legislation may be necessary to extend the scope of bank liability restructuring to include unsecured, unguaranteed senior bonds.”
Also
P7: "We will ensure that the investigations into failures in the banking system are adequately resourced. "
FFS, P8, they will " Reverse the cut in the minimum wage".
No, just that they’ll have to legislate for it. They don’t believe, at the moment, that there is a way to impose losses on senior bonds while leaving the banks unliquidated.
Liquidating a bank you already own is kind of difficult if the numbers you have been set up with require you to retrieve some value from it in the future. It doesn’t so much apply to Anglo or INBS, but it does to the other banks.
Which is why I thought nationalising them all was a bad idea…
Also a recrease, or reintroduction of a previous increase reversed, i.e. the reversal of a decrease in the min wage moving back to a level that was born out of ideology, peaking in sympathy with and financed by a credit BOOM.
Not sure of the net effect when pitched against the PRSI reduction but basically the message we’ll pay you more so we can tax you more. So where is the money going to come from to pay for this now that the unions ideological illogicality has shown itself to be alive and well.
Regarding the water, the thing that sickens after our pollute water supply me most was the background moves by an existing Quangos as it sensed imminent threat from a new regime. The NRA began early on positing themselves for jobs in Waterworld.
Michael Noonan reveled this in very candidate comments in the lead up to the election. Stating the NRA had made representations from the point of view that the NRA had all the planning and engineering expertise. The NRA pitching for new quangohood, the very morons who refused to allow rest stops on the motorways now think they are qualified to run the water supply.
They won’t get it though - Anglian Water have paid a lot of ‘attention’ to folks in the last few years. Whichever way it goes we will end up with a worse water supply and will pay more for it. Labour party sell out #1. Michael Noonans incompetence is our only hope here.
So are they are proposing to pay directly to Landlords? Fascinating if so. It looks like I will have to go back to where I started in 2001 as this is not enough. I wonder will Eamon Gilmore remember me.
Probably the only sensibble thing they have done - this is a very high cost economy for people at the bottom end - the recent increases in food and fuel as well as the high cost of rent (primarily fueled by the Rent Allowance floor) mean that the dole is a very attractive option. Until you remove the artificial barriers - carbon tax, rent supplement at the lowest end you can’t reduce the minimum wage without increasing the states burden. People on minimum wage spend all their money (as do people on the dole) so returning the minimum wage to its previous level means a stimulus to the economy at the cost of employers rather than the state. Most of the enployers don’t pay the minimum wage because its the only way to stay in business, they do it to maximise profits.
I’ve no problem cutting the minimum wage when inflation rates for people on lower incomes are negative. Reducing the rent subsidy is the sane way to do this. But the landlord classes are prevalent in the blueshirts and the smoked salmon socialists so fat chance of that.
Have you looked around you lately? Have you seen the amount of businesses closing? What part of the massive job shedding in this economy did you not get of FG for that matter!?
What do you think the net effect will be as we stroll through this depression. Plus you seem to have completely missed the circularity of your argument. I can’t decide if the circularity of you points will create negative feedback, positive feedback or both within the system.
Here is the potential commercial reaction to such a move, employed hours will be reduced across the economy to offset the “burden”. See where the burden ends up there.
Never mind that 2011 is gong to be worse than 2010 if the migration of Job holders is a growing trend.
I wish people would learn the one thing that we need to remember from this whole experience is that the less we do the more we can see what it is that we can actually do that has an effect rather than presuming everything we do is required. This reminds me of the following issue with Hydrogenated oil,
It’s my first time reading one of these. And probably my last.
The following excerpts & thoughts may save you some effort.
Lots of fiscal hostages to fortune in this document – bucket loads of new tax breaks and handouts. I think the political calculations will shift on this as FG will find it very tough to hit their deficit reduction targets without back end loading which increases the risk that they clobber the taxpayer closer to the next election. This is not great news if you intend to become “the natural party of government”. On the other hand, if you are Labour, it’s ok to tax as long as FG are around to take the real kicking.
This will be interesting – Varadkar & co were very anti-property tax in the election, rightly guessing that a lot of middle class voters would fear that a property tax would be the straw that forced them out of their houses. Labour were pro a property tax (it plays better with their constituency).
However, it is such an obviously good long term idea and actually would bring in some revenue (and it hits tax exiles to boot), that they will have no choice but to bring it in, despite the fact that it will do for FF what fresh blood does for Dracula. If so, the sooner they bring it in the better for them (the closer to 2011, the more they can blame it on FF).
It’s not like the process was proceeding quickly before. I guess they still don’t understand that the sooner they hit bottom, the sooner some real recovery comes. Another few months / years before they learn this.
I thought ELA was cheaper than the IMF ? 1.75% vs 5.5% ?
I gather this is to be funded by what is left of NPRF. A brand new bank is a good idea; definitely one of FG’s better ideas over the past few months. Remains to be seen exactly what a “Strategic Investment Bank” is.
Overlap with above ?
Besides the font changes & typos some good stuff in here on FOIA etc. Let’s see how much survives and how it is prioritized. Probably not a lot.
Great stuff but this will surely cost a bomb ? One of large number of pledges that I can see saving me money but how are you going to take it back ?
These just delay the inevitable and increase the costs – I guess they never learn. Doesn’t look like Peter Mathews got much of a look-in in this section.
Of all of the direct planned interventions in the economy, this is my favourite (there are too many to mention….). Did they confuse us with Iceland ? Which corporate donor has a business this area ?
Overall, well it’s a fudge which I guess is the result of living in a democracy. Problem is, it’s a fudge w/o evident leadership (so far). Put together with Enda getting handbagged by Merkel before he even takes office, its all a bit ominous…
