Colm McCarthy: Let’s write off monetary union and start afresh

Colm can correct me, but I think the title of the article does not capture the substance of the piece.   I don’t think Colm is advocating abandoning the euro, but rather fixing its current inadequate structure, including putting in place an adequate banking union and effective lender of last resort to states.   From the article: … Continue reading “Colm McCarthy: Let’s write off monetary union and start afresh”

Colm McCarthy:Ireland gets its reward for being EU’s little pet poodle — nothing

Colm McCarthy expresses understandable frustration with the pace of developments in meeting the commitments made on June 29th(see here).   Central to Colm’s criticism is what he sees as a fundamental inconsistency between the government’s claims of success in its crisis-resolution policies and calls for some form of official relief on banking-related debt. Since the resort … Continue reading “Colm McCarthy:Ireland gets its reward for being EU’s little pet poodle — nothing”

Colm McCarthy: Fours years on yet not even a parking ticket issued

Colm writes in today’s Sindo on the outstanding problem of obtaining satisfaction from those responsible for the banking crisis within the banks. As usual there is a lot to think about and digest, but one piece stood out for me: In Ireland, almost four years after the balloon went up, not so much as a … Continue reading “Colm McCarthy: Fours years on yet not even a parking ticket issued”

Colm McCarthy: State’s gigantic portfolio of property and bank loans will be a tough sale

Colm’s Sindo wide ranging column this week takes NAMA and the disposal of its assets as its focus but also calls for an inquiry into several important matters. From the piece: Viewed from behind the desk of an international investor with plenty of options around the world, this is not a pretty picture. The reputation … Continue reading “Colm McCarthy: State’s gigantic portfolio of property and bank loans will be a tough sale”

Colm McCarthy: Ireland Has Lost Capacity to Borrow

Colm McCarthy has yet another important article in the Sunday Independent: see here.   I would be somewhat more positive about what was achieved this week with the stress tests (and associated recaptialisations), and also the strengthened commitment from the ECB to continue to act as lender of last resort.   But Colm is right that the … Continue reading “Colm McCarthy: Ireland Has Lost Capacity to Borrow”

Colm McCarthy: Terms of the bailout deal are not unfair — they are impractical

I’ll take my turn linking to Colm McCarthy’s agenda-setting column in the Sunday Independent (available here).     While I don’t find much to disagree with in Colm’s piece, I worry that some readers might come away with the sense that default provides a relatively painless solution to our problems, which I don’t at all think … Continue reading “Colm McCarthy: Terms of the bailout deal are not unfair — they are impractical”

McCarthy and Mody on what the Greek fiasco tells us about the ECB and IMF

Here, and here. Three questions arise. Why would any non-European country be willing to accept another European IMF head? Would it not be better for the Europeans themselves if a non-European IMF head provided us with an “adult in the room” at times of crisis? And why would any European be happy living in a monetary … Continue reading “McCarthy and Mody on what the Greek fiasco tells us about the ECB and IMF”

McCarthy: This burden of bank debt is simply not sustainable

Colm writes another dinger of a piece for the Sunday Independent, it’s required reading. From the piece: No other eurozone member has incurred bank-related debt under ECB duress. There are no provisions in the Maastricht Treaty, in the Stability and Growth Pact or in any other pact or international treaty which grant this power to … Continue reading “McCarthy: This burden of bank debt is simply not sustainable”

McCarthy: Vote Yes to this Flawed Treaty

Colm takes a realpolitik look at the fiscal treaty in the Sindo today, and takes aim at the ECB and EU Commission towards the end. He argues that despite the treaty’s many flaws we should vote for it. From the piece: Opposition parties appear to be limbering up for a referendum on austerity. There can … Continue reading “McCarthy: Vote Yes to this Flawed Treaty”

McCarthy: Talk of new bailout is not ludicrous

In today’s Sindo Colm puts the context around Willem Buiter’s comments earlier this week that Ireland might need a second bailout and should negotiate one in good time. From Colm’s piece: Economists who work for banks have acquired a bit of an image problem, well-deserved in many cases. Buiter is not one of these. Before … Continue reading “McCarthy: Talk of new bailout is not ludicrous”

McCarthy: Time for a whole new strategy on negotiations

As chairman of the Limerick Branch of the McCarthy fan club, I hereby point you towards yesterday’s Sindo column where The Colm describes a new strategy for negotiating with our overlords cousins in the EU. From the column: The reported ECB attitude on Irish debt relief should come as no surprise to anyone. Taking one … Continue reading “McCarthy: Time for a whole new strategy on negotiations”

McCarthy: The Eurozone can be saved

Hoisted from the comments (ht Michael Hennigan), here’s Colm McCarthy in today’s Sunday Independent writing on the Eurozone crisis. It’s worthy of reproduction in its entirety on the site but I’m not sure the Indo editors would be happy about it. So head over and read it there, and head back to comment. This piece … Continue reading “McCarthy: The Eurozone can be saved”

McCarthy: Brussels Plan A is Junk and that’s Great News for Us

Colm is at his best in this Sindo column. Best bits: Plan A has failed to create circumstances in which the three ‘rescued’ countries can return to the markets, the over-riding objective of any programme of official support. Their traded debt has collapsed in price and all three are rated junk by at least one … Continue reading “McCarthy: Brussels Plan A is Junk and that’s Great News for Us”

McCarthy in the Sindo, again

There is another cracking column by Colm in today’s Sunday Independent. Money quote: The European economies have not been experiencing the worst recession since the Second World War because the retirement age is too low, or because there are national differences in corporation tax rates. Ireland is not in an IMF bailout because the budget … Continue reading “McCarthy in the Sindo, again”

McCarthy and Varadkar on Fiscal Strategy

Colm McCarthy makes an important contribution to the fiscal debate in today’s Irish Times.   I agree with most of it: the precariousness of creditworthiness, the rebuttal of Ray Kinsella, and the reputational damage associated with an IMF/EU bailout.  But Colm continues to provide the best analysis around of half the challenge facing the government – … Continue reading “McCarthy and Varadkar on Fiscal Strategy”

McCarthy on Greece and Ireland

I guess Colm has better things to be doing then putting links up on blogs but for those of you who haven’t seen it, Mr. McCarthy’s column in today’s Irish Times makes for interesting reading. Colm points out that “It would be unfortunate to celebrate the centenary of 1916 with macro-policy dictated from Brussels and … Continue reading “McCarthy on Greece and Ireland”

Ahearne and McCarthy on the Banking Crisis

Today’s Sunday Business Post carries two interesting opinion pieces.  Alan Ahearne writes a defence of the NAMA approach (you can read it here), while Colm McCarthy recommends an inquiry into the banking crisis (you can read it here).  The latter suggestion has been adopted elsewhere (for example, in Iceland).

Reformed central bank regulators criticised for being, uh, ‘awake at the wheel’

Three people bid for a house, each using a mix of savings and borrowings; the highest bidder wins. Now suppose each had been prepared to spend more, and each bidder’s bank had extended an additional €100,000 of credit. Nothing changes in the aggregate – one house is bought and sold – except that the buyer … Continue reading “Reformed central bank regulators criticised for being, uh, ‘awake at the wheel’”

Cameron’s Referendum Gamble

This is Colm McCarthy’s latest column for the Farmer’s Journal. They’ve very kindly let us repost it here: ** The decision last Thursday to detach the United Kingdom from the European Union was taken by referendum, a procedure familiar in this country but a constitutional novelty in the UK. Ireland has a written constitution and one … Continue reading “Cameron’s Referendum Gamble”

A dangerous union for small countries

Here are three papers I have read recently. 1. Reinhart and Trebesch on the way that external debts can hollow out local democracies. No need to elaborate on this I think. 2. Avdjiev, McCauley and Shin on cross-border banking: well worth a read for people not familiar with this stuff. They are talking about complicated transactions, … Continue reading “A dangerous union for small countries”