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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

The Peoples Convention

Diarmaid O Cadhla diarmaid.ocadhla@cppc.ie

Dear friend,

Attached is a .PDF copy of a statement issued on my behalf by The Peoples Convention.

The statement is important because it is an attempt to expose the role of the party system in our democracy as against the right of citizens.

We have highlighted the fact that there is no mention in Bunreacht na hÉireann of “party”.  Article 16.2.1 states that the Dáil should be composed of people who “represent constituencies”, it does not provide for anyone to represent either themselves individually or any party.

This presupposes that TD’s should seek mandate from their constituencies on all issues, it also presupposes that private clubs should not be allowed to usurp either the selection or election process, and they should not be given state funding or preferential status.

To highlight this issue, I have refused to complete the Statutory Declarations required by the Standards in Public Office (SIPO) legislation, something required by my involvement in the General Election (2011).

Either the SIPO legislation means something or it is a sham as declared … if it means anything then I should be prosecuted – and we get to debate this question in open court.

You can assist in this matter by publicising this issue, via social network links, forwarding this email, discussing with your friends or in any organisations you have involvement with.

Please contact me if any clarification is required or if you can help in any way,

Is mise,

Diarmaid Ó Cadhla :

2012-04-02 Press Release on SIPO

Website: An Chomhdháil Phobail | The Peoples Convention Follow CPPC_IE on Twitter LIKE the page on Facebook

PS Please note dates for Constituency based meetings:

Lucan, Co. Dubin Wed. 18th April and Blackrock, Cork on Wed. 25th April.

The Bank bailout(Private bondholders) is illegal under Bunreacht Na hEireann, the Irish Constitution

The current government are guilty of treason and the pervious gangsters from the former government are also guilty of treason .They have betrayed the Irish people and the republic in favor of their pals ,the faceless bondholders who are now sucking the lifeblood out of every Irish family. The drastic cuts in public services especially the health and education is a massive crime in itself. Hundreds of people have committed suicide in the last 4 years and this blood in on their hands. Ahern and his cronies along with the Fianna Fail parliamentary party should be in Jail no pensions should be paid to any of the former Ministers.

No government minister ,no top civil servant from the Department of Finance or the Financial regulatory department , should be receiving any pensions  they should all be in Jail .All current top government pensions should be brought down to that of the ordinary citizens pension full stop .As for the former Bank directors none of them should be in receipt of any pension from the toxic banks and their property should be sold off to help pay compensation to the hapless pensioners who placed their thrust in these gangsters in the first place. All bank directors are as far as I am concerned are labial for the devastation we are now stuck in.

This Bailout is a bailout of Deutsche Bank and we the people of Ireland have been hoodwinked, bamboozled, and suckered into taking on the private commercial gambling debts of these gangsters with the help of our corrupt politicians who are in it for what they can get for themselves. After 4 years not one of these Gangsters are in Jail!  I say again these bank debts are private commercial debts and have nothing to do with the Irish People and we are not responsible for the discharge of these debts. The new household charge is been forced on to the shoulders of every family to help pay the interest on the billions of this private commercial debt and has nothing to do with patriotic duty .The gutless politicians using this praise are the mouthpieces of the new absentee landlords in Berlin. This is odious debt! This bailout is illegal. The state has no right to force me or my family into financial slavery and it must be opposed in every way possible. Wake up Ireland and say no we will not become financial slaves!

Negative Equity and Debt Restructuring

We are all aware for the huge problem homeowners are facing
with negative equity issues

Dr. Constantin Gurdgiev has outlined here in this article a costing and a possible road map of what a possible bailout of the ordinary Irish home owner could look like.I find it an excellent well thought out process and the Government of the day should give it serious
consideration .It is not possible to continue to bailout the gangsters in the
banks and at the same time demand homeowners continue to pay back the full
The amount on properties that are now only worth less than half of what the banks
lent out to the hapless mortgage holders. It takes two to tangle and the banks
were negligent to say the least when offering these mortgages in the first
place .(due diligence and all that) I believe the banks have to step up to the
plate and the take on their part of the responsibility .The total lack of
regulation also implicates the Government and there is an obligation on the government
to take its share of the blame so in this case would advocate that up to two
thirds of the total debts be written off.But what chance of that ever happening?? None!Kenny and the boys are there to look after the banks and themselves

machholz

Negative Equity and Debt Restructuring

by Dr. Constantin Gurdgiev

This week, we finally learned the official figure for what
it would cost to address one of the biggest problems facing this
country.According to the Keane Report – or the Inter-Departmental
Mortgage Arrears Working Group Report – writing off negative equity for all
Irish mortgages will cost “in the region of €14 billion”. Doing the same just
for mortgages taken out between 2006 and 2008 would require some €10
billion. These numbers are truly staggering, not because of they are
so high, but the opposite: because they contrast the State’s unwillingness to
help ordinary Irish families caught in the gravest economic crisis we have ever
faced with the relatively low cost it would take to do so.

Let me explain. full article at source:http://trueeconomics.blogspot.com/2011/10/16102011-negative-equity-and-debt.html

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