Portugal Bail-Out Set to be Discussed by EU..

Discussion in 'Current Affairs, News and Analysis' started by AlphaKennyThing, Apr 7, 2011.

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  1. As I understand it,we would be underwriting the loan.So no cash being given to them.No just yet anyway.
  2. Germany will foot most of the bill again anyway, i'm sure.
  3. All this bailing out on credit is deeply worrying.

    If Ireland, Greece or Portugal do fall off a cliff, they could drag the rest of us off with them.
  4. Call it Guaranteeing, if they do`nt pay, we pay.

    Why is it the political class & their civil servant beaurocrats seem totally oblivious of the basic rules most of the rest of us learnt as teenagers in the playground. i.e.

    Acquintance/mate asks me for a bailout/sub. Give it out once & they will invariably be back next week or next month wanting me to bail them out of their last bail out & from there on it is habitual. You give it out once so you are seem as a soft touch life saver who can be turned too by the serial offender once again. Suddenly you are feeding & encouraging their habit.

    Perhaps they all went to Eton & none of their class ever needed a bail out ! So they are all fumbling around in unknown territory.
  5. Alsacien

    Alsacien LE Moderator

    Euro 75 billion actually.

    To be paid out of ECB loose change.
  6. Correct, the total amount is estimated to be at least 75 Bn maybe more, however the potential UK share of the liability or commitment is being estimated at around 3 Bn ONLY !, as we are only in the single market, not the single currency.

    Correction, the ECB will not be paying it out of loose change, minted metal costs far too much money. So they will just be printing or photocopying it instead. No sorry, that costs too much as well, so it will just be a promise to pay the bearer on demand. Sometime in the dim & distant future, maybe.
  7. Alsacien

    Alsacien LE Moderator

    With nearly Euro 4000 billion in eligible assets alone (last time I looked), I don't think the ECB will need to ask the BofE for a hand.....especiallly as they are not part of the Eurozone.
  8. Yeah right, & Lehman Brothers had fistfulls of dollars too, on paper. So how did they suddenly fall over a cliff the next day?

    Answer: because good souls like yourself believed what they read & were comforted, last time they looked. Because Moody`s sad they were tripe AAA+ rated & so did Standard & Poors & so did Fred Carno`s circus.

    Which just prooves, that there are no fools, like gullible old fools & we`re are all doomed, doomed & deserve to be spanked all over again.
  9. BuggerAll

    BuggerAll LE Reviewer Book Reviewer

    The Portuguese economy another triumph for socialist economics.

    Perhaps if we get Miliband and his irritating creature Balls into power the we could have the EU bail us out too.
    • Like Like x 1
  10. Alsacien

    Alsacien LE Moderator

    Portugal is not an over exposed American bank.
    Analysis of the actual situation in Portugal suggests a very different solution is needed to that of Ireland, which in turn was very different to Greece.
    Ireland took 3.6 billion in Feb out of the EFSF at 5.9% maturing in 07/2016. At that rate it is attractive to do bi-lateral financing operations too, and I suspect some have. The ratings agencies (all of which are US based commercial entities), are somewhat queering the pitch, aided by a lack of policy in the Eurozone.
  11. Agreed, it is all smoke & mirrors.

    I´m glad we can both agree about the gist of all of that in principle, without needing to go into too much detail !
  12. More likely they're all used to asking Daddy to settle their account at Fortnum & Mason ...
  13. Peanuts in the grand scheme of things fiscal but if Spain goes cap in had then I can see the bag-o-nails that is the Euro going tits up and the strong looking after their own interests.
  14. Turns out the european central bank has already been subbing Portugal since the back end of 2008 through the back door to the tune of tens of billions of euro`s already.

    More than 2 years & all those tens of billions already & they still could`nt get a grip on putting their house in order having, it would seem, already been given a breathing space with loans on the quite.

    As Manuel said, QUE ? & now it`s pretend as if it has only just come to this now & we need an ongoing bail out all over again. This is a joke.

    The integrity of the eurozone has been completely undermined & compromised. These PIGS are never going to fulfill their bail out agreements & commitments to ever pay back. Greece has failed to follow through on it`s bail out commitment already & the Irish, well, if they go true to form, honouring the deal is not exactly their stron point now is it.

    The politicians are throwing good money after bad to save the great euro project & in the end they will fail at everybody elses expense when this lot are either ejected from the euro or ask to leave themselves.

    I am getting rid of euro, before it all comes tumbling down about their ears when the dominoes start falling in a year or two.