The Big Bailout of the Eurozone (Another crisis coming? - Seriously)

[Bogball XV]

Is the credit union the best place for ur money at this moment in time

I think this post says it all. The guarantee followed the day Joe Duffy was bombarded with calls from citizens worried about their savings and was a response to the risk of a bank run. 2 years on, with NAMA costing 40bn and 50bn pumped into 6 banks to draw a lne under the sand and it's back. People asking if their money is safe.

that was when leno rang rte to complain and to tell Joe Duffy that he was being irresponsible.  As I've said before, part of his problem is that he thinks that the word markets hang on his every word, I heard him admit that just after he took over he was taken aside by departmental officials and warned that his words would move markets and that he must be extremely careful.  They should have explained to him that the more he keeps on talking up the situation, the less likely they are to believe anything that comes out of his mouth.

[lynchbhoy]

When I hear Lenihan now ( as in aherne in his day ) I am reminded of  Groucho Marx and " If you can fake sincerity you got it made

Indeed - Folks you've got to remember that his lineage means that the FF DNA is so deeply embedded that he cannot see any further than his nose can lift above the parapet of the trough. Lenihan and his ilk do not give a flying f**k about the general population and any observer of abusive relationships would be well versed with our dysfunctional relationship with the Soldiers of Destiny. They keep hitting and raping us and we keep expecting them to change because they love us - NEWSFLASH - They'll never change.

In this bleak week I'll give you 2 quotes from Einstein to consider:
1. Insanity: doing the same thing over and over again and expecting different results.
2. No problem can be solved from the same level of consciousness that created it

Oh and it's good to see that they can understand exactly what they are speaking into
http://www.youtube.com/watch?v=UyKzzpW5O7s

this is all true
but I dont think that any of these politicians are any better.
Maybe a few from each party can be pulled out to form an intelligent progressive government - right now 'party' is such an apt word for these collections of me feiners !

[Fear ón Srath Bán]

Is there a more damning illustration of just how detached from reality this sorry cabal (in Leinster House) are? Premiers of the globe, and what they're paid, in order from the top of most to least:

1. Lee Hsien Loong, Prime Minister, Singapore
Annual salary: $2.75 million

2. Donald Tsang, Chief Executive, Hong Kong
Annual salary: $515,300

3. Barack Obama, President, United States
Annual salary: $400,000

4. Nicolas Sarkozy, President, France
Annual salary: $319,800

5. Julia Gillard, Prime Minister, Australia
Annual salary: $315,800

6. Brian Cowen, Taoiseach, Ireland
Annual salary: $312,000

7. Stephen Harper, Prime Minister, Canada
Annual salary: $309,800

8. Jacob Zuma, President, South Africa
Annual salary: $305,800

9. Angela Merkel, Chancellor, Germany
Annual salary: $303,800

10. David Cameron, Prime Minister, United Kingdom
Annual salary: $300,400

And it's not just the fact that Biffo's number 6 in the world (must be inversely proportional to performance in his case), he's entirely symptomatic of the grossly inflated pay that the higher levels of the public sector have awarded themselves, while the lower levels struggle.

When they swing their swingeing axe of cuts to the public sector in this budget they had better, this time, bring themselves into line remuneration-wise (as they so offensively failed to do last time). Otherwise there will be trouble.


Edit: I'd forgotten initially about their recent salary cut in the Dáil (Cowen was at number 4), but the fact that even after that reduction Cowen's still paid more than, for example, Cameron is bad enough.

[bcarrier]

The trouble with the numbers above is that they are expressed in $ .

Everthing in Ireland is overpriced and so a vicious cycle began. Take the humble bottle of coors light. Less than £3 in Uk ...5.50 euro in ireland .Camerons ( untaxed) salary will purchase about 100,000 bottles of coors light whereas the biffos with probably only buy 60,000.

[Bogball XV]

The trouble with the numbers above is that they are expressed in $ .

Everthing in Ireland is overpriced and so a vicious cycle began. Take the humble bottle of coors light. Less than £3 in Uk ...5.50 euro in ireland .Camerons ( untaxed) salary will purchase about 100,000 bottles of coors light whereas the biffos with probably only buy 60,000.

Sure he'd only be topping up with 60,000 bottles of Coors Light - not sure if he'd be into light beers all the same.

[MCMLX]

Is the credit union the best place for ur money at this moment in time

I think this post says it all. The guarantee followed the day Joe Duffy was bombarded with calls from citizens worried about their savings and was a response to the risk of a bank run. 2 years on, with NAMA costing 40bn and 50bn pumped into 6 banks to draw a lne under the sand and it's back. People asking if their money is safe.

The ordinary Joe has been fed lie after lie, how are we to know if our money is safe anywhere? Would you trust a government guarantee, I know I certainly dont.
Could we see a tax on savings next?

[Main Street]

Back to an article linked by Bogball

"New York hedge funds bet against Republic of Ireland"
http://www.belfasttelegraph.co.uk/business/business-news/new-york-hedge-funds-bet-against-republic-of-ireland-14959638.html

How does this scam work? -  bet against Irish government bonds -   (hedge funds) taken major positions against Irish debt - €3bn of Ireland's debt was being targeted by speculators through the uses of derivatives.

[Zapatista]

In this bleak week I'll give you 2 quotes from Einstein to consider:
1. Insanity: doing the same thing over and over again and expecting different results.
2. No problem can be solved from the same level of consciousness that created it

Oh and it's good to see that they can understand exactly what they are speaking into
http://www.youtube.com/watch?v=UyKzzpW5O7s

It's the battered wife syndrome. The more FF batter us and our children the more we tell ourselves they are good deep down and we are the only ones who see it (seriously I seen Lenihan buy rounds of beer in a pub he was never in before and hasn't been since during the 2007 election. Surely he must be a decent guy). The rest of the world know they will kill us one day but we just won't listen.

[bcarrier]

F**K the subordinated bondholders.

F**k Chelsea.

http://www.reuters.com/article/idUSLDE69024P20101001

[muppet]

F**K the subordinated bondholders.

F**k Chelsea.

http://www.reuters.com/article/idUSLDE69024P20101001

This demonstrates beautifully what screwing the citizens to protect bondholders really means.

A more serious question is why the INBS bailout is equal to their total loan book? Does every single loan have to be paid off by the state? If so who borrowed the money and are they walking away scott free?

[muppet]

That's what puzzles me.  All this eye watery amount of money was borrowed and poured into the state of 4 million people.  Where did the money go?  All of these developers are claiming they have nothing now.  Is there nothing that can be recovered from anyone in the state?  There must be a large number of millionaires and even some billionaires given the amount of money sloshing around the system.

BTW BoI in N.Ireland is now divorced from BoI RoI and is now part of BoI UK.

Impossible to know but I'd imagine the previous owners of the Bewleys/Doyle Group/Burlington hotels made a fortune. The problem for them is what did they do with the money after they sold out? Imagine if, like say Sean Quinn, they put a lot of it in the stocks formerly known as 'blue chip' such as Irish banks it would have been wiped out. Also if they put it into Irish stocks in general they could have lost up to 75%. God help them if they put it into property.

Another possibility is they deposited it in Irish banks who then lent it out and blew it. In that case the Government will take it off the ordinary citizen and give it back to them.

[Hereiam]

That's what puzzles me.  All this eye watery amount of money was borrowed and poured into the state of 4 million people.  Where did the money go?  All of these developers are claiming they have nothing now.  Is there nothing that can be recovered from anyone in the state?  There must be a large number of millionaires and even some billionaires given the amount of money sloshing around the system.

BTW BoI in N.Ireland is now divorced from BoI RoI and is now part of BoI UK.

T.U.P the money never existed to start with. This is what is buggin me. The banks were lending credit that they never had, but yet people are been forced to pay back real money in place of it The bad loans that nama is supposed to be takin care off could be wiped tomorrow because its not real money, its credit that never exisited. If that makes any sense.

[bcarrier]

A more serious question is why the INBS bailout is equal to their total loan book? Does every single loan have to be paid off by the state? If so who borrowed the money and are they walking away scott free?

Derivatives ? ...I think anglo lost some big bet against the yen...huge damage done in six months before lehman crisis as they chased the losses.

[muppet]

A more serious question is why the INBS bailout is equal to their total loan book? Does every single loan have to be paid off by the state? If so who borrowed the money and are they walking away scott free?

Derivatives ? ...I think anglo lost some big bet against the yen...huge damage done in six months before lehman crisis as they chased the losses.

That could be it. It would make idiots out of the Financial Regulator/Central Bank and recent Ministers for Finance if they let these stupid banks bet.

[muppet]

Been thinking about the NTMA not issuing bonds for the next couple of months. After Thursday it is probably now too expensive for us.

Cowen's spin is that we are funded up to the middle of next year. The problem is that we are broke after that. The assumption must be that they think things will be better by then and borrowing will be dramatically cheaper. If they are wrong we will be borrowing at higher rates and with money running out. They would most likely be strung by the markets never mind the citizens.

The only likely way that rates will fall back well under 5% is if a ferocious budget gets through. That is by no means certain either.

That leaves only one other possibility. Cowen will pull the plug and have an election before they borrow again.