In 2008 economist Nouriel Roubini earned widespread ridicule for claiming that the embryonic problems in the US subprime sector would mutate into an existential financial crisis that would cost the banking system over $1 trillion (€721bn).

IN IRELAND, over two thirds of private sector employment is accounted for by SMEs, yet this group has been particularly challenged since the onset of recession.

The State could end up paying more for the Irish banks if they fail the stress test next year as the bailout fund, the ESM, is ruling itself out and bailing-in the shareholders has become more acceptable.

A new programme of long-term refinancing operations to depress borrowing costs, interim arrangements for a bank resolution fund and an assurance Greece does not need a third bailout, were all part of Mario Draghi’s reassurances that the euro and the economic recovery were going in the right direction.

Labour ministers Eamon Gilmore and Pat Rabbitte are “technically correct” that the agreement with the troika is to reach a 5.1% budget deficit target by 2014, but it will come down to a “game of poker” whether the Government will be allowed ease up on the €3.1bn in consolidation planned for October’s budget, according to UCD economics professor Karl Whelan.

A stimulus package financed by a eurobond is the most economically feasible and effective wayof overcoming the eurozone’s significant challenges, according to UCD professor of economics Karl Whelan.

THE myth that crippling austerity measures have been anything other than disastrous for this country was finally nailed by this newspaper yesterday, when it revealed that the IMF hugely underestimated the devastating impact of a relentless programme of tax increases and spending cuts.

A 20-to 30-year deferral of the €28bn in promissory notes relating to Anglo and Irish Nationwide would be the most effective way of restructuring Irish bank debt, according to UCD economist Karl Whelan.

The Finance Minister Michael Noonan has said it is a good day for Ireland after the latest deal at the EU summit that will ease the pain of future budgets after this year.

The ESRI’s withdrawal of a report this week has seen a similar scenario of critics lining up. But with Frances Ruane as director, the institute has a better reputation than many others in Ireland, writes Kyran Fitzgerald

Ireland is short on time and options, but IOUs may offer some remote hope of easing our burdens, writes Europe Correspondent, Ann Cahill

REGARDLESS of whether you intend to vote yes, no, or are still among the don’t knows, you need to be fully informed, so read on for a foolproof guide to the treaty.

Dr Ed Walsh, the founding president of the University of Limerick, has hit out at leading eurosceptic MEP Nigel Farage’s use of an address he gave to promote a no vote in the fiscal treaty referendum.

Ireland will face “into the unknown” if voters reject the EU fiscal treaty, the Tánaiste has warned.

Taoiseach Enda Kenny has today accused Sinn Féin of lacking respect for the public’s intelligence in its campaign for a 'No' vote in the forthcoming referendum on the EU Fiscal Treaty.

Sinn Féin’s campaign against the EU treaty got off to a shaky start after the party used quotes from three economists to back their stance — even though the trio favour a yes vote.

Sinn Féin has been accused of misrepresenting the views of three economists quoted on party literature urging voters to reject the EU Fiscal treaty.

SO, the Taoiseach believes voters will not want to be “bribed” into backing the Yes campaign in the EU fiscal compact referendum — sorry, Enda, but have you ever met the Irish people?

Progress is being made in talks with the European Central Bank on reducing the cost to the taxpayer of bailing out Anglo Irish Bank.

It is “very possible” the Government will begin negotiations next year on a second bailout, according to UCD economist Karl Whelan.

The Government should delay making further scheduled bailout payments to the former Anglo Irish Bank for as long as possible, a number of leading economists said yesterday.

China is considering increasing its participation in the rescue funds aimed at resolving the European debt crisis.

Government warnings that a vote on the EU fiscal treaty is a vote on staying in the euro could trigger a run on the banks, a leading economist warned.

IN CASE you missed it while gorging on turkey at the weekend, the latest zany instruction from Government is to “embrace a policy of realistic optimism” — as opposed to the unrealistic optimism we all evidently suffered from in advance of the election.

AFTER imposing losses of about €15 billion on junior bank bondholders, Finance Minister Michael Noonan is taking aim at senior debtors in what may prove to be a fruitless battle.

A UCD professor in Economics Karl Whelan has said one of the problems in Ireland is that the country does not have a "functioning personal bankruptcy regime".

GOVERNOR of the Central Bank Patrick Honohan has suggested that loan losses at the Irish banks could well be higher after the second capital review from the Central Bank, which is due in March.

THE main banking stocks pulled the ISEQ index of Irish shares upwards yesterday, on the back of the announcement of the planned new “Basel III” capital rules for European banks, which are aimed at preventing another serious banking sector meltdown.

THE decision to split Anglo Irish Bank into a funding bank and an asset recovery bank received a mixed response from economists who described it as “confusing” and lacking in clarity.

DOUBTS have been raised about NAMA’s ability to manage its portfolio of loans and its interaction with banks.

THE state can continue to guarantee €400 billion of bank debt, some of it for up to five years, the European Commission has agreed.

A LEADING economist has taken issue with Finance Minister Brian Lenihan’s claim that people can now buy houses in confidence as prices have become realistic.

LABOUR leader Eamon Gilmore last night insisted he would give up the chance of becoming Taoiseach if it meant keeping Fianna Fáil out of power.

TWO senior economists have claimed the nationalisation of the country’s main banks is inevitable in order to restore confidence to the sector and to allow financial institutions to resume normal lending practices.

The Government could end up paying too much for bad loans from banks, it was warned today.

Finance Minister Brian Lenihan has appointed an interim managing director to oversee the state body being set up to purchase toxic debts from Irish banks.