Honohan: Reflections on Corporate Restructuring in Ireland

speech here.

4 replies on “Honohan: Reflections on Corporate Restructuring in Ireland”

“Reflections on Corporate Restructuring in Ireland”

I thought zombies didn’t have reflections…..or is that squids?

bit of thread:

Germany, Netherlands and Finland in reverse gear
27 September 2012 Presseurop Süddeutsche Zeitung

“Back to the vicious circle”, announces a worried Süddeutsche Zeitung which reports that a new Northern European alliance is attempting to block direct aid to Eurozone banks – a measure endorsed in the wake of hard-fought negotiations between European heads of state on 28 June in Brussels. The daily reports that on 25 September, German Minister for Finance Wolfgang Schäuble –

… executed what amounts to a dramatic u-turn in euro bailout policy. In a joint declaration with his Finnish and Dutch counterparts [Jutta Urpilainen and Jan Kees de Jager], he could not have been more clear. Any hope or belief that financially weakened Spanish banks could, as early as next year, directly access the ESM [European Stability Mechanism] euro bailout fund without going through the government in Madrid has now been dashed. All existing liabilities will be the responsibility of national governments. What, at first glance, appears to be a reassuring message for European, and especially German citizens – that we will not pay for other people’s mistakes – quite simply means that with a stroke of a pen, the ministers are attempting to correct and even hijack their government leaders’ decision […] If the Northern European ministers succeed in imposing their about-turn at the next Eurogroup meeting on 8 October – and it is quite likely that they will, given that Germany, the Netherlands and Finland are among the Eurozone’s best financial backers – Spain will have to get by alone.

A very flaky speech, that ends with a exhortation for a surgical strike on an ailing corporate sector. I doubt that Prof Honahan´s livelihood will be on the surgeons table.
How about some quantifiable numbers, such as the number of jobs to be lost in surgery versus the bank capital, always bank capital, to be lost by continuation of these enterprises.
Interesting that NAMA, at State expense, will continue to indulge the ´business plans´of our more colourful éntrepreneurs, while Prof Honohan encourages surgery for ´les autres´

The connected and the unconnected. ’twas always so, still is, and will continue until there is the mother of all upheavals.

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