ECB Policy Keeps Afloat Economically Unviable Companies and Creates Market Bubbles - German Court Rules

valamhic

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True, but that doesn't mean he hasn't got a point.
Doctors lash smoking, Police lash drug abuse, Road safety Authority
lashes speeding. I lash general mutilation and green environment destruction and I stand condemned.

Can anyone see the crucial difference in six case studies above. See next post.
 

valamhic

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The crucial difference is that in Ireland most inhabitants consider the state always
to be right. The state is superior to the citizen and the citizen must never question the state.
Olli and most posters here fit into that category and it has cost us dearly
 

Thelasthurrah

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This ruling is particularly relevant to Irish wind farms. I could not understand how they could continue in business when they are losing an average of 65,000 Euros per year. Why would any bank lend to them when they can never repay the capital loan? I agree there was debt forgiveness by parent companies which simply increased their price for their core product to pay for renewables. This was not enough to explain how they could return to lenders year after year for more cash and how 100s of millions could be obtained to build even more wind farms which were guaranteed to loose money.?

This case provides the answer. The EU is printing money by the billion and billion and throwing as failing banks, failing businesses and failing governments. They wanted to keep at this and put off the evil day, (kick the debt can down the road). They wanted to rope in Holland and Germany to share the repayments but now this stops that. It wont be long now. AIB can't last much longer
Do you know if there is any hope that these wind farms will become viable business's in the future.
As for the AIB, wishful thinking I'd say Val, some way will be found to save pillar banks such as AIB.
 

valamhic

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Do you know if there is any hope that these wind farms will become viable business's in the future.
As for the AIB, wishful thinking I'd say Val, some way will be found to save pillar banks such as AIB.
I will do it out here, and do ask me any questions because I want to keep it short.

1)The problem is that wind farms cost the same as other generation plant or a bit more. They have the some fixed and some variable costs, this includes rates, rent, repair and power used to run them. These costs amount to 76% on average of income. Load factor is averaged @ 20%. 22% in better sites 17% in others.

2)The lifespan is finite and at best 22 years at worst 17 years, because of wear tear and obsolescence. There is not residual value, companies don't own the land at all. The average depreciation is over 20 years in accounts. So the interest and principal on capital costs must be repaid within 20 years.

3) There is 24% after fixed costs. In most cases capital all leveraged, in some its 90% borrowed. Say 90% leveraged. The interest is usually recouped first as is normal by credit institutions.
In most cases when fixed and variable costs and interest is paid, there is either nothing left or just about 500K, 300K there abouts.

4) Generally all the interest will be repaid within the 20 years but the principal cannot be repaid from revenue. Finance by leverage gives cash for the construction phase , finance by equity is too slow and they wont pay up when call.
There fore most finance is leveraged. They do try to convert debt for equity but there are few buyers.

5) On average, it would take 90 years to repay all the capital cost with interest and the wind farm only lasts 20.

Hope that explains it.
 

James Dawson

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Doctors lash smoking, Police lash drug abuse, Road safety Authority
lashes speeding. I lash general mutilation and green environment destruction and I stand condemned.

Can anyone see the crucial difference in six case studies above. See next post.
General mutilation?
 

valamhic

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Do you know if there is any hope that these wind farms will become viable business's in the future.
As for the AIB, wishful thinking I'd say Val, some way will be found to save pillar banks such as AIB.
On the AIB.

It was ranked by the all rating agencies as one notch above junk last week.

Its share price L Look at this graph for the past year. Gone form 4.3 to 92.

Its 97 today. That would put any investor in the poor house.

I also know that the value of some assets inits loan book is zero, about 12 %. You could be right, government will try to bails it out, good luck with that

 

valamhic

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Say you invested 10K in the AIB this time last year it would now be worth

10K /4.3 X .97 = 2,555. That is some loss.

The pension fund is 21 million short

I actually believe that there is an economic down turn coming the likes of which was never seen since the famine. I hope I am wrong, because it will change our society more than covid 19. The living will envy the dead. It is why I keep farming, there will be someplace to hide and ride it out
 
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James Dawson

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A typo its time you grew up.
Did you mean: genital mutilation?

It's not even 100% clear but here's the thing, maybe I have a few cobwebs this afternoon but I couldn't think of the word straight away. It took me at least a second (probably more) to think of it.. and that's a second of my life I will never get back (and it all adds up) all thanks to you Val. Own it!
 

valamhic

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Did you mean: genital mutilation?

It's not even 100% clear but here's the thing, maybe I have a few cobwebs this afternoon but I couldn't think of the word straight away. It took me at least a second (probably more) to think of it.. and that's a second of my life I will never get back (and it all adds up) all thanks to you Val. Own it!
Agreed but fingers used to sledge posts into hard ground can be hard to adopt to a fine key board,
 

James Dawson

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Agreed but fingers used to sledge posts into hard ground can be hard to adopt to a fine key board,
If you can spell words correct some of the time you can spell words correctly all of the time.

Why don't you do what I do and have a quick proofread of your post after posting. It's perhaps easier then to spot mistakes too (and tidy them up, if any).

That's why one of my suggestions for the forum here (which was completely ignored) was to extend the amount of time before your post is marked as edited. Which could be a more material change and not just cleaning up typos [sic]

Like over on politics.irish (R.I.P.) hardly any of my clean-ups (which is a common courtesy to my fellow poster) were marked as edited because the time barrier was longer. Over on politics.irish (Peace be upon it) I think it was 5 minutes, whereas here it's more like only a minute.
 

valamhic

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If you can spell words correct some of the time you can spell words correctly all of the time.

Why don't you do what I do and have a quick proofread of your post after posting. It's perhaps easier then to spot mistakes too (and tidy them up, if any).

That's why one of my suggestions for the forum here (which was completely ignored) was to extend the amount of time before your post is marked as edited. Which could be a more material change and not just cleaning up typos [sic]

Like over on politics.irish (R.I.P.) hardly any of my clean-ups (which is a common courtesy to my fellow poster) were marked as edited because the time barrier was longer. Over on politics.irish (Peace be upon it) I think it was 5 minutes, whereas here it's more like only a minute.
Ask me clarify but try to let the chat flow with proof readers being employed. Another solution is self moderated threads, but I don't like excluding anyone. Its an option
 

Olli Rehn

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I will do it out here, and do ask me any questions because I want to keep it short.

1)The problem is that wind farms cost the same as other generation plant or a bit more. They have the some fixed and some variable costs, this includes rates, rent, repair and power used to run them. These costs amount to 76% on average of income. Load factor is averaged @ 20%. 22% in better sites 17% in others.

2)The lifespan is finite and at best 22 years at worst 17 years, because of wear tear and obsolescence. There is not residual value, companies don't own the land at all. The average depreciation is over 20 years in accounts. So the interest and principal on capital costs must be repaid within 20 years.

3) There is 24% after fixed costs. In most cases capital all leveraged, in some its 90% borrowed. Say 90% leveraged. The interest is usually recouped first as is normal by credit institutions.
In most cases when fixed and variable costs and interest is paid, there is either nothing left or just about 500K, 300K there abouts.

4) Generally all the interest will be repaid within the 20 years but the principal cannot be repaid from revenue. Finance by leverage gives cash for the construction phase , finance by equity is too slow and they wont pay up when call.
There fore most finance is leveraged. They do try to convert debt for equity but there are few buyers.

5) On average, it would take 90 years to repay all the capital cost with interest and the wind farm only lasts 20.

Hope that explains it.
All those figures you give here are unproven figures. You have nothing to back them up. Your whole case is built on made-up stuff.
But I understand your reason for your actions- you simply don't like the windmills in your neighbours field. So you throw anything at them- anything at all. Every piece of shit you can make up under the sun.
Remember Don Quixote?
 

valamhic

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All those figures you give here are unproven figures. You have nothing to back them up. Your whole case is built on made-up stuff.
But I understand your reason for your actions- you simply don't like the windmills in your neighbours field. So you throw anything at them- anything at all. Every piece of shit you can make up under the sun.
Remember Don Quixote?
So are their company accounts fake too?
 

valamhic

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See this. You read it first on GPO

 
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