The Irish Economy
Interesting story here.
In terms of economic impact, this BofA move is unlikely to have any significance.
Keep in mind that falls in merchandise exports as a result of the feared drugs’ patent cliff also have a limited real impact.
Jobs in fund administration and similar are important. However, BofA could still route transactions through Dublin with a small staff, while availing of the low tax rate.
Who would delve any deeper?
I think a more interesting article in the FT is the one about Iceland getting off the hook by the EFTA.
Difference between Iceland and Ireland …. one letter and two balls!!
And retail figures for December show how well we’re doing (remember this was a nice mild boom December too!)
Please reassure me that the fiscal council is actually paying attention to what’s really going on.
You may be the best in the class but we’re still in the d-stream and the teachers won’t let us sit the leaving. F*** em.
IMF has never been right about anything
Agree, the Iceland item is potentially very significant. Demonstrates just how bad /misdirected Govt strategy has been.
The FT article is rather curious in emphasising the tax play aspect. I suspect that the tax aspect is merely peripheral to the future need to have derivatives routed via a central clearing house i.e. regulatory change.
The indication that Irish Govt officials are /were concerned about the potential impact on the Irish taxpayer is laughable….Some FT agenda behind that!
Not good for such a large, core book to be leaving Dublin. Also, it is likely that other US FIs in Ireland will be looking at the rationale for this BoA move. If there is a big, positive tax benefit (as many have similar DTA profiles), expect others to follow. With so many tax losses out there, Ireland’s 12.5% tax rate has lost some advantage in the near-medium term. As eluded to before, retaining its tax advantage is no sure thing (de facto loss of advantage here).
“Difference between Iceland and Ireland …. one letter and two balls!”
Its not a lack of courage , there are TDs I suspect who would risk their lives for Ireland (For all I know some SFers may have literally done so.)
The problem is that faced with an unprecedented situation, we have no politicians who can think for themsleves. Psychologists use a phrase ‘originating meaning’ for the ability to act without copying or agreeing with those around you.
Other countries like Iceland have politicians who can act in such a way. We don’t . Faced with the guarantee, an obvious disaster of a policy, SF could not go against the herd, they could not thrust their own analysis.
While Burton could see through the blather, Gilmore and Rabitte seemed to sideline her to go along with the herd. In this you can see why the absurd Stalinism of the Workers Party attracted these two. One could be trendily anti-establishment while never having to think for oneself. It seems psychology trumps the politics of right and left.
ECB Executive Board Member Asmussen: ‘German Interest Rates Will Rise Again’
In a SPIEGEL ONLINE interview, Jörg Asmussen, the German member of the European Central Bank’s executive board, predicts that interest rates will rise again, argues that the threat of inflation is lower than many believe and says the EU would be stronger if Britain remained a member.
meanwhile back in the ranch….
So 15 years is too much.
What chance of a really longterm one? Zip.
With yields on the 9-year at around 4% why don’t they just issue 3.1b in debt? They ain’t gonna come down much more than this.
Germany was given 90+ years to make its WW1 war reparations – about $20bn and various interest and capital easings were allowed throughout that extended period – not sure what the deal was at the end of WW2.
Our financial ‘tsunami’ can be compared with the German situation,minus the destruction reeked by the war – the least we can expect are similar considerations – or else we should pull the pin on the whole Euro Project……
This was planned, as a depression was due and the dot.com boom, 9/11 etc postponed it.
We own the banks? Then we own their books and can trace the money flows …… follow the $$$$!
Iceland were not targetted yet, but Ireland and Norway were. The seabed area, oil gas etc of Ireland, dwarf the Norwegian area! Follow the Statoil regime. leaving the EU if necessary!
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