90 seconds at 9 am with BNZ

90 seconds at 9 am with BNZ: Irish debt crisis deepens; G20 fails to end Currency Wars; Ex Hanover Chair Muir faces Pumpkin Patch block

15th Nov 10, 9:01am by Bernard Hickey

Bernard Hickey details the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including news the Irish debt crisis worsened over the weekend.

Crisis talks were held on the fringes of the G20 meeting in Seoul with Germany pushing for Ireland to use the European bailout fund ahead of its expiry in 2013. The Germans want to replace the fund with an arrangement whereby bond holders share in any of the pain from sovereign default.

The Irish are opposing the need for a bailout and are wary of handing over sovereignty to European authorities.

Irish taxpayers are now baring the pain of poor decisions taken by Ireland's banks during its property boom, rather than the bond holders in those banks. Essentially, Ireland has chosen to spread the pain of bank failures broadly across its population rather than forcing European and British banks to bare the pain of the failure of those banks.

Meanwhile, the G20 meeting ended over the weekend without any concrete measures to end the Currency Wars. The G20 agreed they opposed protectionist actions and competitive devaluations, but did not agree on concrete measures to limit the size of trade and capital imbalances.

China is still opposed to America's money printing and the subseqent threat of the loose money boosting inflation and currencies elsewhere. America wants China to let its currency revalue. Everyone else wants the US dollar to stop falling.

Meanwhile, back at home, former Hanover Chairman Greg Muir faces opposition in his bid for reelection as the chairman of Pumpkin Patch, NZHerald reports.

Paul Glass from Devon Asset Management and Brian Gaynor from Milford Asset Management oppose Muir's re-election, as does the NZ Shareholders Association. Carmel Fisher of Fisher Funds supports his reelection.

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8 Comments

by Wolly | 15th Nov 10, 9:14am 1289765671

"Irish taxpayers are now baring the pain of poor decisions taken by Ireland's banks during its property boom, rather than the bond holders in those banks. Essentially, Ireland has chosen to spread the pain of bank failures broadly across its population rather than forcing European and British banks to bare the pain of the failure of those banks"

The piigs fiasco and US money farce, will drive up the cost of credit for everyone and the govt in Noddy will no longer be able to protect their mates at the banks.....the end game is closing in.

by Wolly | 15th Nov 10, 9:37am 1289767071

"The only question is, is it before or after a bond market crisis? Greenspan!

http://abcnews.go.com/Business/wireStory?id=12144826

My money is on the bond market crisis winning the race. Say helloooo to higher rates and we know what they will do to Noddy and it's unbalanced ponzi property bubble economy.

by Steve Netwriter | 15th Nov 10, 10:27am 1289770049

The climate change scare is dying, but do our MPs notice? by Christopher Booker

http://www.telegraph.co.uk/comment/columnists/christopherbooker/8131383…

Nothing more poignantly reflects the collapse of the great global warming scare than the decision of the Chicago Carbon Exchange, the largest in the world, to stop trading in "carbon" – buying and selling the right of businesses to continue emitting CO2.

A few years back, when the climate scare was still at its height, and it seemed the world might agree the Copenhagen Treaty and the US Congress might pass a "cap and trade" bill, it was claimed that the Chicago Exchange would be at the centre of a global market worth $10 trillion a year, and that "carbon" would be among the most valuable commodities on earth, worth more per ton than most metals. Today, after the collapse of Copenhagen and the cap and trade bill, the carbon price, at five cents a ton, is as low as it can get without being worthless.

Here in Britain, as the first snows fall, heralding what may be our fourth cold winter in a row, it is time we addressed one of the most glaring political "disconnects" in our sadly misgoverned country.

Next Friday is the first anniversary of the leaking of the "Climategate" emails – the correspondence of a small group of scientists at the heart of the UN's Intergovernmental Panel on Climate Change (IPPC). By exposing their manipulation of data and suppression of dissent, these called their reputation as disinterested scientists seriously into question. But that was only the first in a series of events that, in the past year, saw the climate scare going off the rails.

by UKMAN | 15th Nov 10, 12:16pm 1289776603

http://www.telegraph.co.uk/finance/comment/edmundconway/8131605/How-the…;

This article looks at the real problem with the currency wars, both China and the US will drop us all in it.

by Wolly | 15th Nov 10, 12:57pm 1289779067

"The provisions allow for a reduction in the amount of each payment by an extension of the term of the contract, or a postponment of the dates in which payments are due, which would also push out the length of the contract, the Commerce Commission said.

People struggling to make repayments on personal loans, mortgages, credit cards or other consumer credit repayments because of a loss of employment, a reduction in work hours or reduced income may be eligible, Commerce Commission enforcement branch manager Graham Gill said."..herald

First I knew of this....why has this been kept in the dark....so we have our very own version of the "German policy"....making the lenders bare some of the pain....how interesting!

by rp | 15th Nov 10, 1:44pm 1289781894

here's a humorous and disturbing explanation of QE II

http://www.huffingtonpost.com/2010/11/12/fed-animation_n_782929.html

by Alex Tarrant | 15th Nov 10, 2:42pm 1289785376

Wise man once say "he who go around stepping in concrete likely to get stuck"

by Wolly | 15th Nov 10, 2:52pm 1289785953

"Vine killing Psa is spreading rapidly through orchards in BOP, raising fears it could devastate the $1 billion kiwifruit industry"....herald....interesting then the report out that in such crisis situations borrowers can demand a change of terms!

Is this crisis likely to slam that region in the same way the grape glut and GFC has hit Marlborough?...who knows!