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Archive for the ‘The NAMA gravy train’ Category

Tell the people the truth about the Markets & NAMA

Do you really want to know what is really going on in the market place?
Ever heard of the “Rigged Market capitalists system”
Are you ready for this news??
Ernst & Young auditors of Anglo Irish Bank now working for NAMA ,
The same auditors for Lehman Brothers .
This is criminal , allowing this to go on, they should all be in Jail !
We must have a new Irish people’s political party that will stop this fraud in its tracks.
A political party that will prosecute all the individuals responsible for this criminal conspiracy
They must be brought to justice
We the people must have our pound of flesh!

Guilty as charged

 

The European Commission cleared the corrupt Irish governments plan to bail out the countries financial institutions. Ireland established the National Asset Management Agency last year as a Toxic “bad bank,” thus bailing out well connected developers and the criminal activities of the top banks

These Toxic and worthless assets will be purchased from these firms with Irish government bonds. To the tune of now 80 billion Euros

The commission said the Irish plan was in line with rules allowing state subsidies to business during a serious economic crisis. The measure, which is said to targeted the real estate assets, but is also bailing out the banks bad derivative positions is key to cleaning up Irish banks

Five Irish financial firms plan to use the plan, according to the commission.

The bank involved are : Anglo Irish Bank,  Allied Irish Banks, Bank of Ireland, Irish National Building Society and Educational Building Society.

  what we are seeing is the complete destruction of private enterprise as we know it from now on we will have to ask permission from the corrupt bosses in Brussels to wipe our a****

Out national independence is now lost and our own corrupt government have sold us out to their real bosses the international bond holders

Every one of them deserves to be hanged on charges of treachery!

Banking Inquiry, what Banking Inquiry?

Banking Inquiry


We have being promised to-day a Banking inquiry of sorts, by the government but with conditions

There is no need for me to go through all the nity – gritty as I am just too disillusioned with the half baked display of concern of the public’s demand a full and Independent Inquiry by the Government

I hereby renounce all recognition of the right of this government to act on my behalf or my familie and subsequently call on all citizens to kick these criminals out.

I call again for a General election to disprove the public’s support for this band of Gangsters

 

I also again call on the hundreds of thousands of unemployed to come on to the streets and demand the heads of those that have put us where we are .Join the CAB  

Get up and take action, get organized and start taking back our homeland from these Gangsters!
 start canvassing in your local areas against the Governments own candidates .

 

What the gangsters in the Dail have seemingly offered is a covering up and even destroying any hope of the culprits ever having to face justice in this Be-NAMA Republic of ours

Because the culprits are the powers that be .Cowen and Lenihian are in this up to their Necks and are holding the reins of power and their Green lackeys have just woken up to the fact that their bluff has being called ,they have no where else to go and a general election now would wipe them out entirely

We the ordinary people have being sacrificed for the sake of holding on to power

I call upon the Labour Party and the Fin Gael now to declare that they will, when they establish  the next government, they will hold a public inquiry into the destruction of Irelands Financial Independence, the collapse of the Banking system and bring those guilty of corrupt practices to justice and ensure that all those guilty will serve Jail time and their ill-gotten gains will be taken back off them

All x Td’s and Government Minsters will forfeit their pensions and all other payments if found to have aided or abetted these criminal and treasonable acts.

Irish Banks Derivative trading losses

I believe that the banks Allied Irish Bank, Bank of Ireland and Anglo Irish Bank are all hopelessly exposed to huge losses as a result of Derivative trading

They should be asked to come clean and give categorical assurances on their Derivative Trading

Apart from the huge losses on their propriety /mortgages business.ie (subprime desaster),  there is another enormous source of losses from the same banks and that is their trading in the “BOND MARKET” again I believe that they have huge exposure here as well

These Banks have lent approximately 400 billion Euros and all of it borrowed from foreign banks, these funds would have had to have  “Hedging ” or have an insurance taken out ,in case of default !

So what kind of insurance did they get then if not Derivatives?

Derivatives typically have a large notional value. As such, there is the danger that their use could result in losses that the investor would be unable to compensate for. The possibility that this could lead to a chain reaction ensuing in an economic crisis, has been pointed out by famed investor Warren Buffett in Berkshire Hathaway‘s 2002 annual report. Buffett called them ‘financial weapons of mass destruction.’ The problem with derivatives is that they control an increasingly larger notional amount of assets and this may lead to distortions in the real capital and equities markets. Investors begin to look at the derivatives markets to make a decision to buy or sell securities and so what was originally meant to be a market to transfer risk now becomes a leading indicator.

These Derivatives were traded like confetti at a wedding and have about the same value now !

 If a bank goes bust, deals are just canceled and the residual amount is transferred to the legal department. Everyone can live with that. The burden is transferred from the agent (trading floor) to the principal (the shareholders). Because risk cannot be hedged properly by market professionals, it needs to be taken over by a succession of outsiders. If outsiders are not willing to play anymore (Derivative traders) or go bust, (AIG) then risk concentrates again inside the market, where it cannot be hedged and goes Bust.

So derivatives are only as safe as their underlying  risk is liquid and delta-hedgeable.

Brian Cowen was the Finance Minister who oversaw all this gambling activity at the major Irish banks and should be made accountable for the Total Destruction of the Irish financial industry 

Brian Lenihian  is colluding with the Greens to hide the catastrophic nature of the major Banks debts! Indeed I go so far as to say they may be kept in the dark as to the combined total losses which I estimate at Anglo Irish Bank to be somewhere north of 120 Billion Euros alone!

If I am wrong, then prove me wrong, by showing us the figures of Anglo Irish Bank .

Open the books let us see for ourselves

Don’t let anyone tell you that Anglo was nor dealing in Bonds or Derivative Products,

  I call on the Minister of Finance to come out on to the Dail floor and tell the Nation that the Irish Banks have no exposure to these Derivative Markets.

 But before you do I have a question for you!

Why was there this amendment made to the NAMA Legislation?

Page 15 of the draft NAMA legislation says that the definition of a “credit facility” includes instruments such as”a hedging or derivative facility.”  Section 56, starting on page 46, then defines eligible assets for purchase by NAMA as a range of different types of “credit facilities” as well as “any other class of bank asset (Derivatives) the acquisition of which, in the opinion of the Minister, is necessary for the purposes of this Act.”

Why is the National Treasury Management Agency actively looking to recruit a Derivatives Valuation Service Provider to NAMA?

And before you deny that look below!

Title: Appointment of a Derivatives Valuation Service Provider to NAMA
Published by: National Treasury Management Agency
Publication Date: 19/08/2009
Application Deadline:  
Notice Deadline Date: 08/09/2009
Notice Deadline Time: 16:00
Notice Type: Contract Notice
Has Documents: Yes
Abstract: On the direction of the Minister for Finance, the NTMA is seeking to appoint a Derivatives Valuation Service Provider to provide valuation services (the “Services”) in respect of derivatives positions which will be transferred to NAMA. It is envisaged that one firm will be appointed to conduct the valuation of derivative positions transferring from all of the participating institutions. The Service Provider appointed will be expected to: A. Interact closely with participating institutions in order to extract key data items agreed with NAMA and required in order to carry out the valuation of derivatives. B. Determine derivatives’ valuations based on market-accepted methodologies and market rates. Valuations will incorporate adjustments which will be based on the creditworthiness of the derivatives’ counterparties and which will be specified in guidelines agreed by NAMA with the service provider.

C. The Service Provider will be required to work closely with an Audit Co-ordinator appointed by NTMA. The Audit Co-ordinator will collate valuation data and conduct audits of valuations provided by the Service Provider.

D. The Service Provider will be expected to provide a certificate to NAMA on completion of all valuations which confirms that the valuation of derivatives has been carried out on the basis of a market-accepted methodology and assumptions provided by NAMA and represents a fair assessment of the market value of such derivatives.
CPV: 66000000.

Well Boys I can save you the trouble,

There is no way in hell that anybody can put a valuation on these toxic papers /contracts .

With the collapse of the AIG the effective market no longer exists

To prove my point

When Lehman Brothers declared bankruptcy, it triggered the transfer of large sums in the CDS market to insure buyers of Lehman credit default risk protection against all losses from that event. The sellers of these contracts received the Lehman debt and in return they were obligated to pay the contract buyers (the insured parties) enough money to make the buyers “whole” i.e. to give them their full investment in the bonds back as if they had never bought the Lehman bonds.

The auction for Lehman’s debt occurred on Friday afternoon and the final auction price was $8.62. This means that for each $100 initial par value, the debt is only worth $8.62. The sellers of Lehman CDSs (Derivative contracts) were obligated to pay the insured counterparties 91.375% of the bonds’ face value and, in return, they received the bonds.

Who had to foot the bill for Lehman CDSs (Derivative contracts) Why AIG of course!

There was a 92% loss on the stated value of the Lehman contracts and I would suspect that there in now no value on all other outstanding contracts .Why ,because there isn’t enough money printed all over the world to pay for all the contracts that have being entered into .

The perceived values of these Derivatives were based on “thrust” and not real true values!

  

What are Derivates????

Here is a short introduction I manages to find /compile for those of you that are interested in this the mother of all financial scams.

The current difficulties we are witnessing in the financial markets, is just one leg of a 3 legged stool that has come off .The next leg that is about to fall off is the Derivatives leg

and this is

Derivatives are contracts whose value is “derived” from the price of something else, typically, ‘cash market investments’ such as stocks, bonds, money market instruments or commodities.

An equity derivative, for example, might give you the right to buy a particular share at a stated price up to a given date. And in these circumstances the value of that right will be directly related to the price of the “underlying” share: if the share price moves up, then the right to buy at a fixed price becomes more valuable; if it moves down, the right to buy at a fixed price becomes less valuable.

1.

This is but one example of a particular kind of derivative contract. However, the close relationship between the value of a derivative contract and the value of the underlying asset is a common feature of all derivatives.

There are many different types of derivative contract, based on lot of different financial instruments; share prices, foreign exchange, interest rates, the difference between two different prices, or even derivatives of derivatives. The possible combinations of products are almost limitless. What then are derivatives used for?

Derivatives have two main uses: hedging and trading.

Suppose you have a position in a cash market which you want to maintain for whatever reason – it may be difficult to sell, or perhaps it forms part of your long term portfolio. However, you anticipate an adverse movement in its price. With a derivatives hedge it is possible to protect these assets from the fall in value you fear. Let’s see how.

As we have already said, the value of a derivative contract is related to the value of the underlying asset it relates to. Because of this, with derivatives, it is possible to establish a position (with the same exposure in terms of the value of the contract), which will fluctuate in value almost in parallel with an equivalent underlying position.

It is also possible with derivative contracts to go either long or short; in other words you can take an opposite position to the position you have in a particular underlying asset (or portfolio).

Hedging involves taking a temporary position in a derivatives contract(s), which is equal and opposite to your cash market position in order to protect the cash position against loss due to price fluctuations. As the price moves, loss is made on the underlying, whilst profit is made on the derivative position, the two canceling each other out.

Protecting assets which you hold from a fall in value by selling an equivalent number of derivative contracts, is known as a short hedge.

 2.

A long hedge, on the other hand, involves buying derivatives as a temporary substitute for buying the underlying at some future point. This is to lock in a buying price. In other words, you are protecting yourself against an increase in the underlying price between now and when you buy in the future.

Cash and derivatives markets move together more or less in parallel, but not always at the same time, or to the same extent. This introduces a certain amount of what is called hedge inefficiency, which may need to be adjusted. At other times, an imperfect hedge might be knowingly established, which leaves a small exposure to the underlying market depending on the risk appetite of the individual.

Trading

Derivatives trading, as opposed to hedging, means buying and selling a derivatives instrument in its own right, without, that is, a transaction in the underlying. For instance, a trader can get exposure to the US government bond market by buying and selling US government bond futures without ever dealing in the actual bonds themselves.

The aim when trading derivative contracts is profit, not protection.

The risks associated with derivatives are very different to those incurred in the cash markets. When buying a share for example – a long position – your maximum possible loss is the amount you originally paid for it.

Derivatives, on the other hand, exhibit a lot of different risk profiles. Some provide limited risk and unlimited upside potential.

For example, the risk of loss with a derivative contract which confers a right to buy a particular asset at a particular price is limited to the amount you have paid to hold that right. However, profit potential is unlimited.

Others display risk characteristics in which while your potential gain is limited, your losses are potentially unlimited. 

For example, if you sell a derivative contract which confers the right to buy a particular asset at a particular price, your profit is limited to the amount you receive for conferring that right, but, because you have to deliver that asset to the counterpart at expiry of the contract, your potential loss is unlimited.

Because of the wide range of risk profiles which derivative contracts exhibit, it is vital that you have a clear understanding of the risk/return characteristics of any derivative strategy before you execute it.

Leverage

Apart from the structure of the instrument itself, the source of a lot of the risk associated with derivative contracts stems from the fact that they are leveraged contracts.

Derivative products are said to be ‘leveraged’ because only a proportion of their total market exposure needs to be paid to open and maintain a position. This percentage of the total is called a ‘margin’ in futures markets; and a ‘premium’ in options markets. In this context, ‘leverage’ is the word used in all English-speaking derivative markets.

Because of leverage your market exposure with derivative contracts can be several times the cash you have placed on deposit as “margin” for the trade, or paid in the form of a premium.

Leverage, of course, can work both in your favor and against you. A derivative which gives you a market exposure of 10 times the funds placed on deposit is excellent if prices are moving in your favor, but not so good if they are moving against you, as losses will mount up very rapidly.

 3.

In other words, with leveraged positions, losses are magnified as well as gains.

Follow link to see advertisement

http://www.e-tenders.gov.ie/search/show/search_view.aspx?ID=AUG125404

What is the Bond Market??

 Bond marke

From Wikipedia,

 
 
 
 
 
 
 

The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds. As of 2006, the size of the international bond market is an estimated $45 trillion, of which the size of the outstanding U.S. bond market debt was $25.2 trillion.

Nearly all of the $923 billion average daily trading volume (as of early 2007) in the U.S. bond market takes place between broker-dealers and large institutions in a decentralized, over-the-counter (OTC) market. However, a small number of bonds, primarily corporate, are listed on exchanges.

References to the “bond market” usually refer to the government bond market, because of its size, liquidity, lack of credit risk and, therefore, sensitivity to interest rates. Because of the inverse relationship between bond valuation and interest rates, the bond market is often used to indicate changes in interest rates or the shape of the yield curve.

 

Market structure

Bond markets in most countries remain decentralized and lack common exchanges like stock, future and commodity markets. This has occurred, in part, because no two bond issues are exactly alike, and the number of different securities outstanding is far larger.

However, the New York Stock Exchange (NYSE) is the largest centralized bond market, representing mostly corporate bonds. The NYSE migrated from the Automated Bond System (ABS) to the NYSE Bonds trading system in April 2007 and expects the number of traded issues to increase from 1000 to 6000.[1]

 Types of bond markets

The Securities Industry and Financial Markets Association classifies the broader bond market into five specific bond markets.

Bond market participants

Bond market participants are similar to participants in most financial markets and are essentially either buyers (debt issuer) of funds or sellers (institution) of funds and often both.

Participants include:

Because of the specificity of individual bond issues, and the lack of liquidity in many smaller issues, the majority of outstanding bonds are held by institutions like pension funds, banks and mutual funds. In the United States, approximately 10% of the market is currently held by private individuals.

Bond market volatility

For market participants who own a bond, collect the coupon and hold it to maturity, market volatility is irrelevant; principal and interest are received according to a pre-determined schedule.

But participants who buy and sell bonds before maturity are exposed to many risks, most importantly changes in interest rates. When interest rates increase, the value of existing bonds fall, since new issues pay a higher yield. Likewise, when interest rates decrease, the value of existing bonds rise, since new issues pay a lower yield. This is the fundamental concept of bond market volatility: changes in bond prices are inverse to changes in interest rates. Fluctuating interest rates are part of a country’s monetary policy and bond market volatility is a response to expected monetary policy and economic changes.

Economists’ views of economic indicators versus actual released data contribute to market volatility. A tight consensus is generally reflected in bond prices and there is little price movement in the market after the release of “in-line” data. If the economic release differs from the consensus view the market usually undergoes rapid price movement as participants interpret the data. Uncertainty (as measured by a wide consensus) generally brings more volatility before and after an economic release. Economic releases vary in importance and impact depending on where the economy is in the business cycle.

Bond investments

Investment companies allow individual investors the ability to participate in the bond markets through bond funds, closed-end funds and unit-investment trusts. In 2006 total bond fund net inflows increased 97% from $30.8 billion in 2005 to $60.8 billion in 2006.[2] Exchange-traded funds (ETFs) are another alternative to trading or investing directly in a bond issue. These securities allow individual investors the ability to overcome large initial and incremental trading sizes.

Bond indices

Main article: Bond market index

A number of bond indices exist for the purposes of managing portfolios and measuring performance, similar to the S&P 500 or Russell Indexes for stocks. The most common American benchmarks are the Lehman Aggregate, Citigroup BIG and Merrill Lynch Domestic Master. Most indices are parts of families of broader indices that can be used to measure global bond portfolios, or may be further subdivided by maturity and/or sector for managing specialized portfol

Bond market
   
Bond · Debenture · Fixed income
   
Types of bonds by issuer Agency bond · Corporate bond (Senior debt, Subordinated debt) · Distressed debt · Emerging market debt · Government bond · Municipal bond · Sovereign bond
   
Types of bonds by payout Accrual bond · Auction rate security · Callable bond · Commercial paper · Convertible bond · Exchangeable bond · Fixed rate bond · Floating rate note · High-yield debt · Inflation-indexed bond · Inverse floating rate note · Perpetual bond · Puttable bond · Reverse convertible · Zero-coupon bond
   
Securitized Products Asset-backed security · Collateralized debt obligation · Collateralized mortgage obligation · Commercial mortgage-backed security · Mortgage-backed security
   
Derivatives Bond option · Credit derivative · Credit default swap · CLN
   
Pricing Accrued interest · Bond valuation · Clean price · Coupon · Day count convention · Dirty price · Maturity · Par value
   
Yield analysis Nominal yield · Current yield · Yield to maturity · Yield curve · Bond duration  · Bond convexity  · TED spread
   
Credit and spread analysis Credit analysis · Credit risk · Credit spread · Yield spread · Z-spread · Option adjusted spread
   
Interest rate models Short rate models · Rendleman-Bartter · Vasicek · Ho-Lee · Hull-White · Cox-Ingersoll-Ross · Chen · Heath-Jarrow-Morton · Black-Derman-Toy · Brace-Gatarek-Musiela
   
Organizations Commercial Mortgage Securities Association (CMSA) · International Capital Market Association (ICMA) · Securities Industry and Financial Markets Association (SIFMA)

Retrieved from “http://en.wikipedia.org/wiki/Bond_market

     See also Link

(http://www.investinginbonds.com/)

Spot the difference

 

This is a part of an article that David McWilliams wrote see link

http://www.davidmcwilliams.ie/2010/01/06/iceland-shows-importance-of-putting-people-before-banks

Yesterday the, largely ceremonial, president of Iceland stood up for what is right. He decided that it was not democratic for the Icelandic government to insist that the Icelandic people pay foreign depositors who deposited money in Icelandic banks that subsequently went bust.

The president refused to sign the parliament’s bill, which would have penalised the Icelandic people for the mistakes of the executives of the Icelandic banks. He concluded that this was not reasonable as the banking mess was not the fault of the average Icelander. Iceland will have a referendum on the issue now.

This move implies that Iceland might jeopardise its access to IMF funds as well as definitely knock back its aspirations to join the EU.

The official line peddled by the international bureaucrats is that standing up for the small guy undermines Iceland’s credibility. However, the president decided that if credibility in the eyes of the foreign investors comes via hoodwinking the average Icelandic citizen into footing the bill for a mistake the financial markets facilitated, then it was better to be not credible.

Comment


I wrote to the Irish President on the 12.11.2009

See below

Dear Madam President,

The Nama Bill was passed in the Dail this afternoon by 81 votes to 62.

This is the single biggest fraud perpetrated on the Irish people and all 81 TD’s that

Voted for this will be held accountable!

Nama will buy property loans with a supposed book value of 77 billion Euros, according to the Government

Brian Lenihan has estimated that the loans are currently worth about €47 billion.

On what bases could he possible justify this valuation?

Who exactly is being bailed out, none other than foreign entities with no allegiance to Ireland

Why anybody would take anything that this person says seriously, judging on his past record and bearing in mind that this person is responsible for the crises in the first place along with his incompetent cohorts !

By overpaying by €7 billion, the Government hopes to avoid bankrupting the banks

What a laugh, somebody should tell him that they are all ready bankrupt, (morally, socially, and financially)

These Banks have in the past stole from their own customers, the revenue and have being shown to be corrupt and found trying to manipulate each other’s shares and yearly accounts

The Bill will now be sent to President Mary McAleese

I appeal to you, the President, Mary McAleese

Not to sign this piece of legislation and as President to protect the Irish constitution which guarantees all the people the right to be heard?

The 500 green party members had their vote and now the vested interests in the Dail have had their say

We the ordinary people want to have our say, call a referendum on NAMA

Demand that this be brought before the people now!

Sincerely

This is the reply I got !

Conclusion

Our Presidency is just another link in the chain that is strangling Irish Democracy

No sooner has the current president set foot in the Aras she has immersed herself into the game of staying in power and sod the rest of the ordinary people

What a difference the Irish president sends out the above letter and supports the foreign bond holders but the, president of Iceland stood up for what is right. He decided that it was not democratic for the Icelandic government to insist that the Icelandic people pay foreign depositors

The Icelanders at least have a true Man of the people in their President

We on the other hand have yet another stooge for the ruling elite


This is the NAMA Gravy Train!

Remember the Dail gravy train?

This is the NAMA Gravy Train!

 

NAMA will open up an enormous opportunity for endless streams of funds for politician’s pet projects

With the annual running costs projected at €240 million annually according to the Irish times ,with this kind of money sloshing around you can be sure that the friends of friends will be well looked after !

At the same time we read that

TAOISEACH Brian Cowen


Yesterday warned campaigners for lower income families that significant cuts in social welfare will be included in the forthcoming Budget.

When will we see the anger that is building up within the general public break out on to the streets?

Remember it didn’t take long for the people in Romania to dish out justice to their corrupt politicians


The people will take only so much!

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