Moody's drops Ireland two notches citing weak economic growth going forward

Moody's downgrades Ireland again dropping them two notches to Baa3 from Baa1. The outlook on the ratings remains negative. There is little that Ireland can do to stop the rot now that they have taken on their country's bank liabilities. 

The reasons are given below:  Via Moody's:
1. the expected decline in the Irish government's financial strength combined with the country's weaker economic growth prospects; and

2. the uncertainty created by the solvency test required by the European Stabilization Mechanism (ESM) for the provision of future liquidity support.
Growth?  Is this what we expect from the former Celtic tiger?  Once Ireland abandoned it's free market principles and took on the Irish bank liabilities, it overnight converted from one of the most lasseiz faire economies, to one of the most socialist in Europe.  Despite of the relatively low tax rate, all profits for the banks go through Dublin giving the government a huge footprint over almost every single financial transaction taking place. 

Comments

Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier