Welcome to the crises of Credit
Ireland is going through a crises of credit .The attached video clip explains how this crises happened
And hopefully also gives you an insight to the problem we are facing. So the next time Brian Lenihan says we have turned a corner or property has bottomed out you will know better.
We haven’t even begun to deal with the real problem and that is the derivatives time bomb.
Credit default swaps are mentioned in the video clip pay close attention to them!
With the government having embarked on the slash and burn budgets and now their attempt to get the opposition to sign up to even tougher budgets and all because they want to hand over the savings to international “investors” you don’t have to be a genius to see that this is bringing us down the road to destruction Why? Because they are taking away the means for the still paying home owners to pay their mortgages, people start losing their jobs and then they will start to default, already 90,000 people are behind in their mortgages payments and that is before we even get started on the even tougher budgets
Of 2011,2012,2013,2014 each budget will have to slice off approximately 5,000,000,000:00 each year of the budget deficit and that is not counting the billions that we have to pay in interest on the remanding national sovereign deficit plus the cost of bailing out Anglo Irish Bank, the bonds sold into the market by the rest of the banks .
The government has to come clean on the Credit default swaps and the leveraging exposures of the banks only then will we know the exact nature of the problems facing us.
We are nowhere near the bottom and lenihan knows it only too well and now the opposition parties have some idea as well! With the government’s insistence on bailing out the private bank Anglo Irish and their establishment of NAMA they have created the perfect storm. They have done exactly the wrong thing; they have rewarded the gambling investors and are cowering down to their demands to be bailed out and have the Irish taxpayers pay for their sour investments.
This course of action is not surprising because the government are receiving advice from the same advisers that advised the international investors to lend their funds to Anglo in the first place!
In a nutshell vested interests are running the finances of this country and when nothing is left they will consent to calling in the IMF who will have no other option then other than to sell off the country in bits and pieces to the same vested interests
What a scam!
- Hedge funds hold Ireland to ransom over Anglo Irish Bank bail-out (telegraph.co.uk)