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wim

When Irish Eyes Are Crying

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So I'm a big fan of Michael Lewis. This is a feature article so takes a bit of time to read. There are numerous quotable parts but this was one of my favourites.

http://www.vanityfair.com/business/features/2011/03/michael-lewis-ireland-201103?currentPage=all

For a few hours the Merrill Lynch report was the hottest read in the London financial markets, until Merrill Lynch retracted it. Merrill had been a lead underwriter of Anglo Irish’s bonds and the corporate broker to A.I.B.: they’d earned huge sums of money off the growth of Irish banking. Moments after Phil Ingram hit the Send button on his report, the Irish banks called their Merrill Lynch bankers and threatened to take their business elsewhere. The same executive from Anglo Irish who had called to scream at Morgan Kelly called a Merrill research analyst to scream some more. Ingram’s superiors at Merrill Lynch hauled him into meetings with in-house lawyers, who toned down the report’s pointed language and purged it of its damning quotes from market insiders, including its many references to Irish banks. And from that moment everything Ingram wrote about Irish banks was edited, and bowdlerized by Merrill Lynch’s lawyers. At the end of 2008, Merrill fired him. One of Ingram’s colleagues, a fellow named Ed Allchin, was also made to apologize to Merrill’s investment bankers individually for the trouble he’d caused them by suggesting there was still money to be made on shorting Irish banks.

It would have been difficult for Merrill Lynch’s investment bankers not to know, at some level, that in a reckless market the Irish banks had acted with a recklessness all their own. But in the seven-page memo to Brian Lenihan—for which the Irish taxpayer forked over to Merrill Lynch seven million euros—they kept whatever reservations they may have had to themselves. “All of the Irish banks are profitable and well capitalised,” wrote the Merrill Lynch advisers, who then went on to suggest that the banks’ problem wasn’t at all the bad loans they had made but the panic in the market. The Merrill Lynch memo listed a number of possible responses the Irish government might have to any run on Irish banks. It refrained from explicitly recommending one course of action over another, but its analysis of the problem implied that the most sensible thing to do was guarantee the banks. After all, the banks were fundamentally sound. Promise to eat all losses, and markets would quickly settle down—and the Irish banks would go back to being in perfectly good shape. As there would be no losses, the promise would be free.

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Apartments that until a few years ago sold for $205,000 in the Celtic Tiger economy are now on the market at discounts as low as $34,167 during Ireland's first ever mass auction of repossessed homes.

For those with the cash, property bargains abound. Even the upscale Dublin 4 district is offering apartments formerly on sale for $1,230,030 for a previously unheard of reserve price closer to $300,674.

The mass property auction will be held on 15 April in the upscale Shelbourne Hotel, one of Dublin's premiere venues.

Most of the lots for auction were previously owned by Irish property investors who have either gone into receivership or simply handed over the keys to the banks.

http://www.irishcentral.com/news/-Hundreds-of-repossessed-homes-and-idle-cranes-go-for-auction-in-Ireland-116724189.html

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Now that's the kind of eventual discounts I hope to see in Sydney. :thumbsup:

This was advertised in the Sydney Morning Herald. Was £5000. Selling for £1350. Down 73%.

18990218-P3C6-Sydney-Ashfield.jpg

http://trove.nla.gov...366?zoomLevel=1

Newspaper: Sydney Morning Herald

Date: 18th February 1899

Page 3

Column: 6

Advertisement: 19th in column

Could be worse. This was advertised in the Argus for a Melbourne property. Was £20,000. Selling for £1250. Down 94%.

19000818-P10C7-Melbourne-Elsternwick.jpg

http://trove.nla.gov...774?zoomLevel=1

Location

Newspaper: The Argus

Date: 18th August 1900

Page: 10

Column: 7 (2nd last)

Advertisement: 3rd in column

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This was advertised in the Sydney Morning Herald. Was £5000. Selling for £1350. Down 73%.

Could be worse. This was advertised in the Argus for a Melbourne property. Was £20,000. Selling for £1250. Down 94%.

Thanks for sharing, BTW they were both upper-class residences, have you come across ads for median-level housing or lower (i.e. 300-600 pounds)?

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jesus all mighty, thats still too freeking expensive for me.

speaking about over priced holes in the ground. they built some beah front appts here at christies beach , 7 of the lotte are occupied, paid in range of $600k i hear. i dunno how many are in total but the star unit someone paid nealy 1 mill for, 900+k .

middle of winter , sun is just shinning thru and every shop in the ground floor is also un occupied. this thing was meant to be be off the plan, and there are for lease signs on all the store fronts.

id be willing to pay say $100 a week to stay in it. i guess summer the place will rent out. i hope its also furnished?

http://www.realestate.com.au/property-apartment-sa-christies+beach-106259930

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