Thursday, 18 June 2009

Rumours in the Irish bond market

This is "rumour", hence no links.

Some say that all the bonds issued by the Irish government are being bought, on the orders of the Irish government, by nationalised Irish banks which wouldn't otherwise touch them, and then the bonds are being placed straight into the European Central Bank's Special Liquidity Scheme.

Or to put it another way: German taxpayers are funding the Irish debt binge.

They may not be happy when they find out where their money went.

No comments: