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Posts tagged ‘Bailout’

Kenny and Ireland’s dead cat bounce

By Michael Hennigan

Enda Kenny, taoiseach, made a broadcast to the nation last night to mark the official end of the international bailout and he deserves some credit for meeting the financial terms of the bailout and winning concessions from Europe on debt. However, the crisis
provided the best opportunity for radical change since the late 1950s and now
the time has passed. The Economist in a blog post titled ‘Dead Cat Bounce‘ says that meeting the bailout terms “has done little to solve Ireland’s underlying ailment: the fact that domestic activity – – roughly equivalent to GNP – – only accounts for 80% of GDP. As the multinational firms that account for most of the rest contribute little towards
government revenue due to Ireland’s super-low tax rates, Ireland’s debt burden
will only become more sustainable when domestic firms start booming.”

full article at source: http://www.finfacts.ie/irishfinancenews/article_1026992.shtml

Comment:

By Thomás Aengus O Cléirigh

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Kenny and his co collaborators in the Twiddle dumb and twiddle dumber political system are effectively announcing that its back to Business as Usual for the 350 insider family’s or so elite that are running this BA-NAMA Republic .They lied to us and broke all their promises and anyone dumb enough to believe that Happy days are on the way with 65,000 citizens leaving every year is just a joke, the lower classes, the vulnerable and the old who cannot defend themselves. Our country is divided and these crooks are still parting at our expense, sucking our country dry on behalf of the big multi corporations ,who pay a pittance in tax  so the PAYE taxpayers will continue to carry the burden of bailing out gangsters, crooked politicians and toxic banks! We need a drastic change that includes the abolition of the current dictatorship of the 2.5 political party systems that ensures no change in politics no matter what combination of political party wins at the so called polls! Putting the likes of this puppet in charge of our lives along with Noonan, Gilmore, and M. Martin is just plain stupid!

Allowing the current totally corrupt system to continue is just putting off the day of reckoning /revolution. We cannot allow this system where these self-centred, sell-outs controlling   every aspect of our lives for 5 years after each and every election! No I want to be able to kick these crooks out of office via referendum (Direct democracy) a month after any election or any time within the 5year period, if they prove to be liars, con artists, on the make or downright puppets in the pay of foreign governments, and or proven to have deceived the people (Broken promises) No real modern democracy needs career politicians! We are a small country and we should be able to govern ourselves like the Swedes or the Swiss.

Have a great day!

AIB ‘will not repay €3.5bn cash it owes’ to the State

Sent in to me this morning:

Thomas,
The total hypocracy is unbelievable …… 3.5 billion being wiped off in exchange for worthless shares while thousands of families are being forced out of business and homes …….

AIB ‘will not repay €3.5bn cash it owes’ to the State

Pension Reserve Fund likely to convert the debt into more shares, says Goodbody

111709_1028_AIBBroke1.jpg

In a note to investors, Eamonn Hughes of Goodbody said he thinks  AIB’s €3.5bn of “preference shares”, which are held by the National  Pension Reserve Fund on behalf of the State, will convert to equity in  the bank. A decision on how and when that will happen will be made  before May 2014, he said.

Despite the name, preference shares are a type of debt owed by banks to investors.

In the case of AIB, the debt is part of the €20.7bn taxpayer-financed bailout of the bank.

The National Pension Reserve Fund is supposed to be paid interest of 8pc  per year on the investment; however, to date, the interest has been paid in shares, not cash.

Goodbody said it expects the entire €3.5bn  to convert into equity because of a punitive clause that will trigger a  25pc “step up”, or increase in the amount owed, if the debt has not been repaid by May next year.

INSTRUMENT

That looks unlikely, according to Goodbody, and its “base-case” scenario is that the instrument will convert into AIB shares.

Converting the preference shares into equity means that instead of being owed €3.5bn by the bank, the State’s hope of recovering the investment rests  on the value of the lender itself rising dramatically.

It would not mean the State has to put any fresh money into the bank, however.

The National Pension Reserve Fund bought preference shares in AIB and Bank of Ireland in 2009 as part of the bank bailout.

Bank of Ireland is likely to raise €700m to €1bn in order to finance paying off its €1.8bn of preference shares, Goodbody said.

However, Eamonn Hughes does not believe AIB will be able to tackle its preference shares before the “step up”.

Goodbody first outlined its view on the capital needs of the banks including AIB in a note that was circulated to clients in May, but the note has never been published.

Its view was reiterated yesterday after  rating agency Fitch said it thinks AIB and Bank of Ireland could  potentially require more capital when the lenders financial strength is  assessed in so-called “stress tests” next year.

Why Bank Bail in and Bail out Wont Work. Case study Iceland and Greece

By: Sam_Chee_Kong

As  most of us can remember that Iceland was the first country that went down  during the last Global Financial Crisis in 2008. During that time Iceland had  done something remarkable and that is during the five years prior to the crisis,  managed to transform its economy from a fishing industry to a mega hedge fund  country. Many of its citizens left their traditional trade which is fishing to  become fund managers and salesman. As a result Iceland’s banking assets  (physical assets + Loans + Reserves + Investment securities) grown to more than  10x its GDP of $14 billion.  With such  high leverage, when the financial crisis struck it is unable to defend its  economy and hence its house of cards collapsed.

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The  purpose of this article is a post-event analysis of the performance of the Icelandic  economy that refuses a bailout as compared to Greece which went for a bailout  with the injection of funds from Troika. To simplify matters, we shall coin the bail-in and bail-out as (BIBO) for  short. Of course in the short term it helped stabilized the Greek economy for a  while but we want to know to what extent it had transformed the Greek economy  in the long run with the accompanying terms and conditions and austerity  measures. In this article we shall compare the performance of both the  economies of Iceland and Greece with the economic indicators or metrics below  from the year 2002 to the present. We believed we have been fed with too much  toxics by the mainstream medias which are also own by them that capitalized on the age old investment axiom of good-to-good……………………..

full article at source: http://www.marketoracle.co.uk/Article39892.html

Ireland will enter a less invasive programme in 2014?????? (Bulls***)

A former deputy director of the IMF has warned that it’s unlikely Ireland will be in a fit state to exit it’s bailout programme next year.His comments completely contradict suggestions made by the Social Protection Minister Joan Burton who said yesterday that Ireland is well-placed to exit the programme sooner than expexted.Donal Donovan, now a member of the Fiscal Advisory Council, has said it’s highly unlikely that we’ll see the back of the Troika in such a short period of time.He says it’s much more likely that Ireland will enter a less invasive programme in 2014 to make the bailout exit smoother.

Comment:

This is of course a lode of bull. This country is the 2nd most indebted country in the world! We haven’t a hope in hell of ever paying back. The government is just winging it in the meantime in the hope of getting some crumbs that might fall from the table when the Greeks eventually Default!

We are all taped out Kenny ,not one red cent more will you get from me!

Our total national income is nowhere near enough to even pay the interest on the debts our government have taken on! With 35%of out tax take just going on interest payments this is just not sustainable. I have published this graph on a number of times on this blog and I would ask you all to copy it and send it to your local TD,s and ask them to justify why we are still trying to please our real masters in Berlin. We must stop believing the absolute crap Kenny and Noonan are spreading we will not get any relief from the Berlin mafia as we are paying our dues and that is all they want us to do .

We are been bullied and like all bullies we have fallen on our knees and we are begging for mercy and a few crumbs from our bullies table .We must get up off our knees and rid ourselves of our financial tormentors in the ECB and in Berlin. Enough is enough it s now payback time .we must fight back and first plan of action is to default. This will happen in the end in any case! These debts are not ours and we were not bailed out we bailed out the ECB and Deutsche Bank! We need patriots who will fight for the Irish Nations self interest and not puppets and collaborators like Kenny, Noonan, and Gilmore who have sold us out to the financial slave drivers in Europe!

Ireland stand up and fight back now!

Bank bailout protesters to descend on the Dail on first day back after summer recess

By Namawinelake

Last weekend, the communities of Ballyhea and Charleville in county Cork held their 80th weekly bank bailout protest, a dignified 15-minute modest display that demonstrates, for some at least in Ireland, they will not go quietly into the night and accept the 40% of GDP cost of the bank bailout being heaped onto the nation’s shoulders……

full article at source:http://namawinelake.wordpress.com/2012/09/12/bank-bailout-protesters-to-descend-on-the-dail-on-first-day-back-after-summer-recess/

Spain imposes further austerity measures

MADRID—Spain’s government imposed further austerity measures on the country Wednesday as it unveiled sales tax hikes and spending cuts aimed at shaving (EURO)65 billion ($79.85 billion) off the state budget over the next two and a half years.A day after winning European Union approval for a huge bank bailout and breathing space on its deficit program, Prime Minister Mariano Rajoy warned Parliament that Spain’s future was at stake as it grapples with recession, a bloated deficit and investor wariness of its sovereign debt.

“We are living in a crucial moment which will determine our future and that of our families, that of our youths, of our welfare state,” said Rajoy.

“This is the reality. There is no other and we have to get out of this hole and we have to do it as soon as possible and there is no room for fantasies or off-the cuff improvisations because there is no choice.”

Read more: Spain imposes further austerity measures – The Denver Post http://www.denverpost.com/news/ci_21050086/spanish-pm-explain-eu-bailout-terms?source=rss#ixzz20Ju5wRy7

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