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Archive for the ‘derivatives time bomb’ Category

Credit default swaps and treason in Greece

The revelations of Credit default swaps and treason in
Greece should start to flash red lights here in Ireland as there are enormous
movement in Irish credit default swaps spreads. With well placed insiders are
able to make huge money and nobody is calling for a public enquire, these financial
instruments of mass destruction are been used and nobody knows who’s benefiting
from them!

Are we not going down the obvious road to default because of
a conflict of interest by those that are charged with this decision??? How do
we know that special interests are not been looked after???

Can we thrust our politicians? I know what my answer is !

AIB has already defaulted see here

The International Swaps and Derivatives Association (ISDA) yesterday said that   a “credit event” had occurred on Allied debt, meaning the bank has   effectively defaulted on its debt, a situation the Irish government has gone   to extreme lengths to avoid.

Credit default swaps (CDS) sold on Allied subordinated bonds and, crucially,   its senior debt, have been activated by the decision of the ISDA   determinations committee that decides whether a borrower has defaulted.

The decision by the committee, which is made up of 10 major banks, follows the   announcement earlier this month by the Irish High Court of a “subordinated   liabilities order” that changed the terms under which junior debt in   Allied was originally sold, forcing holders of the bonds to accept an   extension in the maturity of the debt to 2035.

Allied had already missed a coupon payment on its Lower Tier 2 debt. However,   changes in the law enabled the bank to avoid being forced to be formally   placed in default.

For the market, ISDA’s decision renders this move largely irrelevant as it   means the bank will be categorised as in default in the eyes of investors.(source http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8590428/Allied-   Irish-Bank-has-defaulted-says-derivatives-body.html  )

This is an attack on our democracy!

By
SHANE HEGARTY
Irish Times.com

PRESENT TENSE: IN 2004 Allied Irish Banks became embroiled in a furore when it was discovered to have overcharged foreign exchange customers to the tune of many millions.

At the time the figure was put at €14 million (it ended up costing the bank €65 million), and the initial number was enough to make it the lead story for most broadcasters and newspapers. There were rows in the Dáil. The bank’s then chief executive, Michael Buckley, neatly apologised by describing it as an “administrative cock-up”, as if someone had just crossed the wrong T.

On Monday Anglo Irish Bank revealed that its latest half-year losses amounted to roughly the same as it would cost to rent a black hole and throw the country into it. At the same time the bank admitted that it was beginning an internal investigation into the overcharging of customers by as much as €50 million.

A few years ago this would have been a lead story, a match to ignite the parliamentary hot air. This week? It was an addendum, an “and finally . . .”, just another pile of cash to throw on the green-tinged pyre. It seemed, in the grand scheme, almost inconsequential. After all, it would amount to a mere 164th of the total losses – or just over 0.6 per cent. It is a throwback to the days when we were faced with figures we could almost understand. But now it is a pittance. Sure, you’d pay that off in half a generation.

It is a reminder of just how vast the scale of the Anglo money pit now is. How mind boggling. Once again the media rightly spent a good deal of time trying to put the cost into some kind of context – how many space shuttles you could buy, that kind of thing – but there is an argument that no amount of analogies or graphics or football pitches full of imaginary money can ever truly get the scale across to the average brain.

There were figures this week that were comprehensible. Unemployment is at 450,000. In a country of four and a half million that’s a straightforward figure.

One in 20 mortgages is now in arrears; on any average street that can be grasped. One in eight of the workforce without jobs: it’s possible to think of these in personal terms, in groups of friends. You will know some of the people behind those statistics. You may be one of them.

But €8 billion or €25 billion? That’s way past fantasy statistics. It’s a riot of zeros. In fact, there has been occasional discussion about whether reports should always come trailing those zeros, so that the figures become comets burning across the pages. That way the reader would consistently be clobbered by €8,000,000,000 or €25,000,000,000.

But would that get it across any better than the analogies? Or the stats about Anglo’s half-year loss alone representing €2,000 for every woman, man and child in the State? (Which does, oddly, underplay it a little: many credit-card bills are bigger than that.)

We are told that we will be paying for it for the rest of our lives, and that our children will be paying for it too. But in one respect this is nothing new. We’ve been saddled with debt all our lives and are familiar with the idea of paying off sums over long periods of time, either on a national or a domestic scale. A lot of people left the boom with mortgages that will be with them throughout their journey from youth to retirement.

The irony of it, then, is that the head-spinning scale of the cost is so ungraspable that the pain can be appreciated only at the micro level. The Budget will act as a certain shock but will represent the wider hole we’ve found ourself in. A lost job or wiped-out shares will do it, obviously.

But it is tempting to suggest some way in which the particular, unprecedented national trauma inflicted on us by Anglo could be immediately conferred on every individual, so that we might all physically feel the pain of it rather than the dull shock and exhaustion; so that the weight of those zeros is tangible. Someone breaking into your house and stealing a few grand worth of goods. Or every child who sets up a bank account immediately incurring an overdraft of several thousand. Or Seán FitzPatrick just going from door to door with flapping albatrosses attached to millstones, and padlocking them around the neck of everyone, young and old, in the State

Comment:

What can I add that I haven’t said or posted in any one of my own 1500 articles in my blog, on this toxic toilet?
it is to early in the morning to get all worked up but that is exactly what has been happening every morning for the last 18 months. I think it is knowing precisely ,the scale of this fraud that is been perpetrated on us, by all of the people in power and the enormous scale of the debts that Clown and Lenihan have saddled each and every one of us with.
This is an attack on our democracy, our ability to provide for ourselves and our families, our hard won financial independence is now been robbed of us by the imposition of someone else’s massive debts
This fraud is been perpetrated be the very government that is supposed to protect the people and their families under the Irish constitution
The state is in fact robbing people the ability to provide for their own families by imposing the massive debts from corrupt and fraudulent banks and I maintain that the government do not under the constitution have the right to impose such debts on the citizens of Ireland without going to the citizens and having a referendum.
After all they are not only stealing from this generation but the next generation as well
I believe it is the duty of every Irish citizen to revolt against this unconstitutional and thus illegal measure the government has taken without the permission of the people
I do not believe this government, nor any government have the constitutional right to impose fraudulent and corrupt private bank debts on to mine or any other family in the state and I further believe I have the morel and legal right to try and stop them doing so in defence of our family’s financial well being
With this Anglo Bailout and the NAMA legislation we lose one of our fundamental rights guaranteed in the constitution (The protection of the family)
Depressingly we now know that this toxic toiler is spewing out its toxic poison (debts) all over the country like the BP oil disaster in the Gulf, only this is twice as bad and is going to cost us a lot more
Just think of that
At least the Americans were able to force BP to Pay up for their disaster but imagine the American President said that the Government were going to nationalize that oil wellhead and pay off all its debts as well as pay up for the cleanup and loss of business in the Gulf area It would never happen full stop
No the Yanks told BP shareholders you must pay up and no ifs or buts’
Here in Ireland Clown and Lenihan would have gown down on bended knees and kissed BP in the Ass
And nationalized their debts and probably begged them to continue running the show
With the losses announced by Anglo Irish Bank any normal person would have called it a day
When things are as bad as this all sane people would say enough is enough
We simply cannot continue to allow this blatant robbery of the Irish nation’s wealth
We cannot allow this or any other Government to rob us blind and saddle us with the debts of a private bank that is the play thing of the golden circle of this country.
This must be stopped at any cost and the guilty must be made accountable for their monstrous fraud!

You want to know who I am?

This article was sent in this morning and I thought it might be of interest to some of you.

I know I recognize lot of this man’s current life’s problems.
The sordid intervention of derivatives in all of our lives will sometime soon have to be faced up to
We are approaching the event horizon of this apocalyptical event
Everything is been sucked in and when it has consumed everything we will see the mother of all bubbles burst. With the announcement of the Anglo Irish Banks half yearly results and the results of Irish Life & Permanent, there is no mention of their derivative positions and the catastrophic losses there are still hiding from the public (Proof Anglo Irish deals in derivatives (CFD,s) you only need to read this article in the Irish times )http://www.irishtimes.com/newspaper/finance/2010/0827/1224277688678.html?via=rel

with the full knowledge of the current corrupt government
you have been warned!

By John Mele :
You want to know who I am? First, I’ll tell you who I was.
I joined the Marines when I was 18, went to Vietnam when I was 19, was an 0331 machine gunner, survived a tour of duty in heat and humidity in the mountains of northern South Vietnam near the DMZ. My rear base, the Rockpile, was the most remote base in Vietnam at that time, or so we were told. I survived that war and when I got home I used the GI Bill to get into the Boston Architectural Center, a night school of Architecture. I worked days a few years as a construction laborer and then as an office boy in an architectural office. I got married, was accepted to the University of Oregon and got my BA in architecture in ’77, worked, moved a few times (due to recessions), had two beautiful daughters, raised my family, etc.
After Nam I straightened out, as they say, and sailed a pretty solid course even when the seas of the economy were rough. We had our ups and downs, weathered financial recessions, lost one home and built another, finally settled in Knoxville, TN where I had my own architectural business mainly because I couldn’t work in a cubicle with 400 other architects.
But in ’09 that all changed. This is who I am now.
I am a former Marine, Vietnam war veteran, mad as hell and about to lose my home again. As far as I could tell, our entire financial system collapsed. I mean take forty to fifty years of “economic progress” and just dump it. That is in essence what happened. Many are still clinging to it, hoping for its revival. Something will recover but that something will never be what it was before. In ’09 they changed all the rules. The jobs disappeared, gone to China and India. Guys like me and those before us built this great land and were no longer needed. The bridges, the skyscrapers, the industrial centers, the homes, highways, dams and byways, all built by us, was now thrown away as the “financial system” did not need us anymore. Things called “derivatives” took our place. The US auto industry was on the ropes, banks were collapsing, Wall Street was in chaos, and millions saw the future as a place of unemployment or low paying jobs, if one was available.
So, I decided not to follow the same path I’d been on. With no prospects for work and a boiling anger about–what I felt–was a stolen future for me and my country, I decided to take some alternative actions. I had not failed, the system had failed me and I was determined not to give up but also not to be a fool. I was 60 and soon no matter what I did age would get me. Do I go down playing by the ever-changing rules of financial insanity that I was being forced into? Do I take any job and try to keep the home I spent a lifetime working for? In short, do I suck it up again, go to where I must and start over again at 60 and keep my mouth shut and show up for work and do this until I am dead?
Hell, I’d rather charge up a hill and give it my all to save my “SPIRIT”, because that is the most precious part of any of us. Think “Geronimo” and replace it with “Whitehorse” and you get an idea of WHY I planned this. One last gasp, one last charge, one last mission till the forces of my destiny would overtake me. Would I die trying, if so I was willing to face and accept that? Would Whitehorse save me? I had no idea. I had no idea! It all started with a joke I said to my wife. After repeating it a few times it made more sense than what I was seeing around me.

The inequalities of life invade all our lives. In essence we all make decisions within the confines of the hand we are dealt. At age 60 I decided to challenge that hand one last time and in doing so set my SPIRIT FREE.

I am cycling to Whitehorse, on a bike with a 65 pound pack, a 3700 mile trip…I’ll see you there, if I last…

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