Wednesday, 22 September 2010

... and more from abroad

Paul Sweeney:The penny is dropping with a crash on the failure of the Government’s deflationary policies – everywhere but in Ireland. Today’s Financial Times main editorial on Ireland sounds like some of the TASC bloggers. It urges the government to cut the ground from the banks' bondholders and to cease its obsession with cutting public spending - “a course that anyway might further harm a growth path that looks set to lag the government’s own projections”.

This comment is in stark contrast, for example to Morning Ireland on RTE which yesterday gave a free ride to a representative of Davy stockbrokers, who was allowed to deliver a real TINA speech - there is no alternative to even more cuts, without any hard questioning or alternative views. Morning Ireland did not point out that Davys is a primary dealer of government debt. Such companies makes millions from buying and selling Irish Government debt. They make a two-way market on Irish bonds and are also market makers in Irish bonds.

This morning, Morning Ireland gave Goodbodys a free ride, but the contribution was less partisan. Goodbodys is not a primary dealer of government debt.

Given the lopsided media debate, it is as well the Financial Times is selling well in Ireland. The Guardian also carried a similar piece on Ireland today, as pointed out by Sinéad Pentony here.

3 comments: said...

please take a look at what @bankermathews had to say about NAMA.. In particular the third video :)

Rory O'Farrell said...

How does RTÉ choose its economists to interview?

They usually pick economists from banks and a few self-publicists, rather than universities. It gives the impression that all economists are right wing Teabagger types, when there is often a variety of opinions.

Fergus O'Rourke said...

I do have an uneasy feeling every time a Davys' person delivers opinion pieces to us via the media.

We should of course be reminded of its vested interest in subjects where appropriate.

However, I am not clear how the firm's position in the bond market is alleged to subvert the value of its opinion on economic policy. Surely, it will make money whatever policy is followed ?

I can't see how its opinion is tainted by a possible benefit produced by Morning Ireland listeners being influenced.