S&P Downgrades Irish Debt On Concern Over Cost Of Bank Bailouts, Outlook Negative

Video:  Live clip of Stiff Little Fingers performing Alternative Ulster -- 1979 Tour

European markets open in 4 hours.  This is not a helpful data point for the bulls.

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SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services downgraded Ireland's credit rating Tuesday on concern about the cost of bailing out the country's ailing banks.

S&P lowered Ireland's long-term sovereign credit rating to AA- from AA and kept its outlook on negative, suggesting the ratings agency could cut again.

The downgrade applies to other ratings that depend on Ireland's sovereign credit rating, including senior unsecured debt ratings on government-guaranteed securities of Irish banks, S&P noted.

The total cost of Ireland's support for its banking sector may now reach 90 billion euros ($114 billion), or 58% of GDP, S&P estimated. That's up from a previous forecast of 80 billion euros.

"The rising budgetary cost of supporting the Irish financial sector will further weaken the government's fiscal flexibility over the medium term," S&P's Cullinan said Tuesday.

In the wake of the new bailout of Anglo Irish Bank, S&P now reckons Ireland's net general government debt will climb toward 113% of gross domestic product in 2012.

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Related and recommended:

• TRULY HILARIOUS: Irish Parliament Bailout Video -- Paul Gogarty & Emmet Stagg (F*ck You!)

• BLOOD IN THE STREETS! Bank Bailout Protesters Storm Ireland's Parliament (VIDEO)

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Comments

[DailyBail]

Candy Crowley, veteran CNN reporter, takes on competitive Sunday morning slot

http://www.washingtonpost.com/wp-dyn/content/article/2010/08/23/AR2010082304653.html?sid=ST2010082304708

I used to work closely with Candy when I was at CNN...she is awesome...very much a non-anchor type...this will be a good show...might have to hit her up a for an appearance one of these days...she claims to read the site everyday, but i've never seen a comment from her...good luck Candy...you deserve it after all these years..

[DailyBail]

The Federal Reserve will probably ease monetary policy further as the U.S. economy weakens, said Jan Hatzius, chief U.S. economist at Goldman Sachs Group Inc. in New York.

“The Fed will eventually move to additional monetary stimulus via asset purchases or other unconventional measures,” Hatzius said in a radio interview today with Tom Keene on “Bloomberg Surveillance.” Should the Fed opt for more securities purchases, he said, there is “no point in doing anything less than” $1 trillion.

http://www.bloomberg.com/news/2010-08-24/goldman-sachs-s-hatzius-says-fed-will-move-toward-more-stimulus-tom-keene.html

More QE posturing..it's coming folks...big time...by this time next year, the FED will be in overdrive...we ain't seen nothin' yet...

[DailyBail]

The Limits of Stimulus

http://chovanec.wordpress.com/2010/08/23/the-limits-of-stimulus/

Excellent piece...

[DailyBail]

Obama Is Failing Because He Doesn't Understand That He Can't Create Jobs

http://www.businessinsider.com/stimulus-money-is-not-the-answer-2010-8#ixzz0xaJKzQP7

[DailyBail]

David Rosenberg: Here's The Ugly Demographic Reality That Dooms The US To Sub-Par Growth

http://www.businessinsider.com/david-rosenberg-demographics-2010-8

[DailyBail]

Dysfunctional Oregon

http://globaleconomicanalysis.blogspot.com/2010/08/dysfunctional-oregon.html

Must read from Mish...

[DailyBail]

EU ratings at risk on economy, austerity - Moody's

http://uk.reuters.com/article/idUKTRE67M4OM20100823

[DailyBail]

European Banks May Face More Frequent Stress Tests

http://www.bloomberg.com/news/2010-08-24/european-banks-may-face-more-frequent-stress-tests-to-bolster-confidence.html

[Dr. Pitchfork]

Pitchfork says Ireland is the next ground zero for bank bailout anger. We're talking real, regime-changing stuff. Because shit just keeps getting worse and worse -- and govt has badly managed expectations. Plus, they don't have the Fed (and Fannie and Freddie) to draw things out until Obama gets re-elected (or not). The Irish body politic is relatively cohesive and they're not afraid of talking openly about any differences they have. Fianna Fail and Fine Gael people can sit in the same room and talk politics without getting angry at each other. Can you imagine Dems and Repubs doing that here? In other words, divide and conquer doesn't have a chance in Ireland. Once the switch flips, it will switch for everybody, not just for one half of the herd or the other.
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By the way, here's another recording of "Alternative Ulster," apparently from an old record or tape. I love this song, DB. Awesome find
http://www.youtube.com/watch?v=pVjNPNNxySc

[Z]

Yes, Ireland has a long history of happy-go-lucky political discourse. We all know how easygoing the Roman Catholics are when backed into a corner.

http://www.youtube.com/watch?v=iVM8LObbeLo

Broken bottles under children's feet
Bodies strewn across the dead end street
But I won't heed the battle call
It puts my back up
Puts my back up against the wall

Sunday, bloody sunday
Sunday, bloody sunday
Sunday, bloody sunday (sunday bloody sunday...)
(allright lets go!)

And the battle's just begun
There's many lost, but tell me who has won
The trench is dug within our hearts
And mothers, children, brothers, sisters torn apart

Sunday, bloody sunday
Sunday, bloody sunday

[Z]

Maybe Dr. P is Bono?

[DailyBail]

Credit for the video goes to Patron at Silicon Investor who posted it there last night...

And pitchfork i presume you will keep us updated on the irish bailout situation...

[Dr. Pitchfork]

Z...

What? Partition happened only about a hundred years ago.
http://en.wikipedia.org/wiki/Partition_of_Ireland
http://en.wikipedia.org/wiki/Republic_of_Ireland
http://en.wikipedia.org/wiki/Northern_Ireland

[Dr. Pitchfork]

Yes, DB, I'll keep you all updated.

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