What is truth?

Posts tagged ‘Local Community Issues’

Wicklow Town’s latest traffic management and road resurfacing works

Wicklow Town’s latest traffic management and road resurfacing works are ongoing and the question now is will they be finished before they run out of money?
see video link http://www.vimeo.com/17153765

Marlton Road

The completion of the pedestrian footpath along the Marlton road is a very welcome development and looks like it will be completed shortly
see video link http://vimeo.com/17154668

Bare-Faced Lies comming from the Goverement!

The cover of Irish electronic Passports as of ...

Image via Wikipedia

http://www.bloomberg.com/video/64569080/

It is a demonstration of lack of creditability in our own politicians when we have to resort to scouring the internet to get to the truth about our countries financial position.

We are being openly lied to, yes bare-faced lies, Lenihan and Cowen are living in a fantasy world of their own and the bunker mentality is obvious to see by all !It is akin to the last days of Hitler in the bunker in Berlin  Cowen and lenihan will not hear of talk of surrender to the Europeans

They have betrayed our people and have brought us down the road of destruction and they should be brought up on charges of economic terrorism

Lenihan and Cowen are in denial and we the people are paying the price for having absolute incompetent people in Government .This government has destroyed the good name of Ireland and they are no better than the mafia.

The country has been driven into the ground and the lies coming from Cowen and lenihan are an Insult to the people of Ireland. The Bailout is coming and no amount of spin is going to change that fact

Whatever Cowen and lenihan eventually call it ,we will be depending on the kindness of strangers and as far as I am concerned the government are a bunch of traitors !

On Newstalk radio program this morning Lenihan conceded that the IMF were on their way and will be here in Ireland tomorrow along with the EU and god knows who else to “see the books” meanwhile In a blow to Ireland, LCH Clearnet Ltd. raised the margin requirement for Irish bond trading to 30 percent of net positions, making it more expensive to buy Irish securities.

This Minster is totally incompetent and should be removed along with the rest of the political vultures infesting the Dail

Irish Bonds are now junk along with the Bank shares and Irish bonds slipped for a second day yesterday , pushing the 10-year yield up 5 basis points to 8.51 percent. The extra yield over German bunds rose 6 basis points to 567 basis points. The Dublin consultations with the ECB, European Commission and IMF tomorrow will “see if the state is able to cover the needs of the banking sector,” Belgian Finance Minister Didier Reynders told reporters today. “If that’s not the case, there will probably have to be a European intervention.”All of this is political waffle and in the end it all means that we are going to have to be bailed out !

listen to Morning Ireland  http://www.rte.ie/news/player.html

They have sold us out !

The crisis comes to pass

Posted: By Gavin Sheridan

of  www.thestory.ie 

We have warned time and time again that Ireland was facing a massive fiscal crisis, both on here and on Twitter. We took a look back through the archives to see what we might have called right over the last number of months:
September 11, 2009: ‘A floor in the market’
We questioned just how much nonsense Finance Minister Brian Lenihan spoke in September 2009, where he argued that Ireland had neared the floor in the housing market. Of course, NAMA set its floor in November 2009, and prices have fallen ever since – leading to yet more losses for the taxpayer. We quoted him:
“If a flood of property is dumped on the market, it will be utterly unsustainable. That is one of the reasons we must establish NAMA and try to establish a floor in the market. We are very near it on the basis of the figures and data we have about the yield from property. The yield is at an all time high relative to the assets, which is a clear objective economic indicator that we are approaching the trough. We must banish our devils, the suggestion that we have further to go. That is part of the problem and the reason for the illiquidity in the housing market.”
There is no doubt that everything said there was a fiction, and it was patently obvious at the time.
December 24, 2009: Morgan Kelly on how we got here
Morgan Kelly published a paper at Christmas 2009, in which he outlined the looming bank crisis and the coming massive mortgage crisis. It was universally ignored. We highlighted it at the time:
I can’t really add much to Mr Kelly’s excellent analysis. What it says to me is that the next 12 to 18 months are going to be among the most difficult, if not the most difficult, time this country has faced. I encourage everyone to read the entire document.
I will emphasise his conclusion:
Despite having pushed the Irish state close to, and quite possibly beyond, the limits ofits fiscal capacity with the NAMA scheme, the Irish banks remain as zombies whose only priority is to reduce their debt, and who face complete destruction from mortgage losses. The issue therefore is not whether the Irish bank bailout will restore the Irish banks sothat they can function as independent commercial entities: it cannot. Rather it is whether the Irish government’s commitments to bank bond holders when added to its existing spend-ing commitments, will overwhelm the fiscal capacity of the Irish state, forcing outside entities such as the IMF and EU to intervene and impose a resolution on the Irish banking system.
February 4, 2010: The Coming Crisis?
It might be news to some people, but the purchasing of Irish bonds by Irish banks was highlighted a long time ago. We highlighted along with many others that Irish banks were buying Irish sovereign bonds and using them as collateral at the ECB. We also emphasised that Ireland was in as worse, if not a worse state than Greece – just that the markets had yet to pay attention to Ireland:
If you thought all of the problems had been sorted, then think again. There are really big problems coming down the road, and very few people seem to be talking about them. So let’s look a little closer at the potential fiscal problems Ireland, and our banks, face.
Everyone is talking about Greece right now, but to me Ireland is no different. It is probably worse. So with these deadlines looming, what is happening? Over the past number of weeks you might have noticed various headlines to do with NAMA delays. Why is this important? Could it be that unless the banks can transfer these junk ‘assets’ from their books, they could face funding difficulties on non-ECB markets?
I could well be wrong, or even cynical, but my feeling is that banks are desperate to get this stuff off their books, in order to be better able to fund themselves after the ECB shuts the discount window. If they don’t get them off their books, and onto the backs of the taxpayer, the banks could simply end up going to the wall, or simply being nationalised.
If you’ve read Morgan Kelly’s excellent analysis of the Irish credit bubble you will be aware of the Irish banking system’s over reliance on international money markets for funding. When the financial crisis hit in September 2008, these money markets froze and Irish banks struggled to get day to day funding. This is what ultimately led to the bank guarantee, and to the opening of what’s called the ECB discount window.
Banks all over Europe were struggling with funding, so the ECB essentially enacted emergency measures to help fund the banks. Irish banks were one of the biggest beneficiaries of the discount (the interest rate charged by the ECB is sometimes called the discount or repo rate). Ireland’s banks have effectively been kept on life support by the ECB since 2008, as McWilliams also noted last year. Essentially Irish banks were buying NTMA-issued sovereign bonds with short-term lending, presenting that as collateral to the ECB and then borrowing cheaply from the ECB. Summed up here – 25% of our deficit in most of 2009 was indirectly funded by the ECB.
When you combine the shutting of the discount window, with the delays in NAMA transfers and ultimately our own State borrowing (indeed we have already borrowed €6.5bn so far this year – 33% of our bond issuance for this year was done in January) and with the likely writedowns of not 30% but 50% on the loanbooks, we are facing a serious crisis. And of course the other factor is the ECB raising interest rates at a time we need them to stay low.
My questions is this: how are we going to pay for all of this?
February 22, 2010: Delay and Pray
This actually sums up how the Irish banks, especially Anglo, have been dealing with our property developers. Rolling over interest, not writing down the loans, not crystalising the losses, doing repayment deals with developers – to drag it out – extending and pretending.
Here it is in a nutshell: NAMA is one massive “Delay and Pray”.
Given that our banks are insolvent, that they are facing massive liquidity issues with the imminent closure of the ECB discount window, they cannot keep the pretence of extending and pretending up forever – and NAMA is, or was supposed to be, the answer to their prayers. You could also argue that Bank of Ireland recently changing its fiscal year was part of this tactic.
The Government would take the crappy loans from the banks (rather a lot), and through some financial voodoo, the losses would still not be crystalised, and rather ingeniously – the debt would not appear as sovereign debt for Ireland, or as debt for the banks, but would instead be dumped into this NAMA bad bank.
And NAMA has one sole purpose – keep the pretence going that someday, somehow, the value of the underlying assets will return to peak prices. Delay and pray. Do not write down the loans. Do not accept the reality of the losses. Do not pass go.
Not only is it unlikely that this will happen, it is almost impossible. Morgan Kelly wrote in December that it could take 50 years for the underlying assets to return to 2006 prices. Last week, in the High Court, we saw development lands being written down by 60% to 98% (in terms of valuation, not borrowing). These figures are the reality of the lands that NAMA is taking charge of. And we are overpaying already. How long do you think it will take rezoned agricultural land bought for €13m at peak, revalued at €600,000 in 2010, to return to €13m? The answer is: it won’t. So much land was rezoned that there is no necessity for rezoning for a further 70 years in many counties. Add to that the 300,000 vacant properties. Add to that little demand. Add to that zombie banks unable or unwilling to lend.
This is the reality of NAMA. Delay and pray.
It logically follows that where the banks lent money with no obvious collateral to back the loan, and where the supposed value of derivative is now zero, the bank sustains a massive capital loss.
However the banks are simply delaying and praying until NAMA takes over the loans, and then NAMA continues the praying.
We are in for one hell of a fiscal mess.
If you hear spin that no one saw this coming, don’t listen. There were plenty of commentators and plenty of warning signs. Unfortunately many people chose not to listen.

Comment:

I too have been warning about this now for the last 20 months and it is  with great sadness that I now see come to pass, my worst fears although I believed we would have been past the worst by now the establishment of the greatest fraud in Irish history (NAMA) has in fact help postpone the worst effects of the now oncoming second phase of this financial disaster yet to be faced by Irish people.

The Current economic terrorists in the Department of Finance have successfully placed private debts of a Golden Circle on to the hard pressed shoulders of the Irish people and they have helped these same gangsters whisk away their ill-gotten gains all across the world .They have also compensated some of them by promising to pay them a salary of up to 200,000:00 Euros a year .This is sheer madness!

Why is nobody doing anything about this crazy stuff? Anywhere else in the world these gangsters would be in jail!

We the Irish people have seen out rights enshrined in the Constitution trampled all over because of political expediency, we have been lied to and robbed by people whose job was to protect the and uphold the constitutional rights of all the citizens of Ireland. Instead they have blatantly placed the financial welfare of a select few above the welfare of the nation and are in the truest sense traitors

They have betrayed the trust of people of Ireland and must be removed from office

A general election is desperately needed now and only candidates that promise to bring these traitors to justice should be voted into office.

Sadly the established political parties are remaining quite on this particular point and there are no calls coming from them to prosecute their colleagues in the Dail

Last night on Front line Pat Rabbet hinted that he would consider going into power with the Green Party

These are the same gutless gangsters that have sold out on every one of their own core values just to stay in power with the current government. Let this be a reminder why we need to have a complete change in the political system unfortunately none of the established political parties want to bring about this change, as it would be akin to asking Turkeys to vote for Christmas they are part of the dysfunctional political system we are saddled with and cant wait to get their hands on the lucrative perks and pensions heading there way by default  .

The Poor can’t pay

These two Videos were sent to me to -day and are a powerful reminder of the real tragedy that so many of our people are going through as a result of the current economic crises

We must make sure that the venerable are not made the scapegoats for the mishandling of the economy by the political elite of this country  .

Letter in Saturday’s Irish Times…

Letter in Saturday’s Irish Times…

A chara,

I write to voice my concern about the future of this country. I am sitting on the steps of the Department of Justice & Law Reform, the sun is beating down on my shoulders and I write to expel a dark thought from my mind. What is to become of the disenfranchised generation of Irish citizens whose future happiness and prosperity in this country has been cast in great black shadows by the criminal activities of our financial institutions and the gross mismanagement of our national affairs by our trusted Government?

Like so many other young Irishmen and women, my partner and I have decided to leave Ireland to live and work in another country. I came to the city today to prepare some things for our trip and to say goodbye to the capital for a while, to soak in some of her unique flavour before departing for Perth in Australia. What is it that makes Ireland a special country? What are the deepest moral values that are the foundations of Irish society? As I walk, thinking about Minister for Finance Brian Lenihan’s recent announcement of the country’s national debt (death?) I was deeply concerned not that I no longer knew what this core moral value might be, but saddened to find that I no longer care.

Seemingly, the woeful economic state we find ourselves in is merely a symptom of a far more threatening problem – a spiritual or existential crisis at play in Irish society. My own sense of moral apathy makes me think a deep wound has been inflicted by the bankers’ greed and it is not in our pockets but sadly in the collective heart of the Irish people. We can endure the toxic financial wreck that is Nama’s balance sheet, the grossly unfair debt saddled so abruptly on honest, hard-working tax-payers.

We cannot endure however, the sheer sense of injustice and the total loss of moral law at the filthy hands of these so-called rogues and sleeveens (it is equally disheartening to see we have had cause over the years to establish a colloquialism to best describe such recurrent characters in Irish society).

An example has been set by the leaders of this country that their selfish and cynical behavior is an acceptable discourse in modern Ireland. Our potential to act meaningfully and righteously in this society has been shrouded in this cynicism by the greedy, ignorant brutes that head our banks and by the lackluster unimaginative politicians that sit in our Government offices.

As a young able man I am ashamed that my chosen course of action is not violent protest (there should be rioting in the streets outside Dáil Eireann and Anglo Irish Bank); rather I choose to leave the wreckage – feeling as if a bully has just entered the playing field, burst the ball and walked away.

Sitting outside the Department of Justice Law Reform, whose steps feel like empty totems of the now laughable notion of justice, I think that the task at hand is not to set the country’s financial institutions back on track. It is to inspire an entire generation of skilled workers leaving our shores to return at some point to rebuild Ireland in the spirit of honesty and hard work, with a belief in our ability to live for the prosperity of others as well as ourselves. – Yours, etc,

BEN MULLEN,

Raheen Park,

Bray, Co Wicklow.

Comment:

The sad fact is we are losing the very best of our people to the rest of the world and I believe it is a policy of our current government to encourage this state of affairs. They keep the unemployment figures down and they don’t need to worry that new people will challenge the status quo at the next elections and they can carry on screwing the rest of us !

As a family man it is not possible for me to abandon Ireland nor do I wish to do so I will stand and fight for what I believe is right. We have a beautiful country with one of Europe’s oldest cultures, a proud tradition of rebellion against ternary

The fact it is we are been betrayed by people calling themselves Irishmen is an insult to the past generations of patriots who died for Ireland

Where are the modern patriots of to-day who will stand up against the crooks infesting the Dail and the gangsters that have taken control of the financial resources of our country thus rendering our independence worthless? We are no more independent than we were at the height of English rule!

If you don’t control your own finances you are not in control of your own life the same rules apply for countries. I just feel so “mad” and nobody is responsible, the lunatics are running the asylum somebody has got to do something !

Remember This?

Howard Beale: I don’t have to tell you things are bad. Everybody knows things are bad. It’s a depression. Everybody’s out of work or scared of losing their job., banks are going bust, Punks are running wild in the street and there’s nobody anywhere who seems to know what to do, and there’s no end to it. We know the air is unfit to breathe and our food is unfit to eat, and we sit watching our TV’s while some local newscaster tells us that today we had fifteen homicides and sixty-three violent crimes, as if that’s the way it’s supposed to be. We know things are bad – worse than bad. They’re crazy. It’s like everything everywhere is going crazy, so we don’t go out anymore. We sit in the house, and slowly the world we are living in is getting smaller, and all we say is, ‘Please, at least leave us alone in our living rooms. Let me have my toaster and my TV and my steel-belted radials and I won’t say anything. Just leave us alone.’ Well, I’m not gonna leave you alone. I want you to get mad! I don’t want you to protest. I don’t want you to riot – I don’t want you to write to your congressman because I wouldn’t know what to tell you to write. I don’t know what to do about the depression and the inflation and the Russians and the crime in the street.

All I know is that first you’ve got to get mad.

Save Wicklow Hospital demonstration

Save Wicklow Hospital organised this demonstration in the town on Saturday to show the HSE and the politicians they will have a fight on their hands if they want to close the town’s hospital and they were willing to take to the streets to prove it
2500 people showed up and this was easily the largest public demonstration that town has for 30 years

Markets are right to be worried

Markets are right to be worried — ‘final’ €50bn to fix banks looks like tip of iceberg

Sunday October 10 2010

THE soaring cost of bailing out the banks means that Ireland is now locked out of the bond markets.

Lenders are terrified that they might not get their money back. And they are right to be worried because the real cost of fixing our broken banking system is almost certain to far exceed even the €50bn figure that has so terrified Irish taxpayers and the international financial markets.

Last week, Finance Minister Brian Lenihan announced that the cost of fixing Ireland’s broken banking system had risen once again. He put the “final” cost of sorting out the Anglo mess at between €29bn and €34bn, up from the €25bn figure that had been previously indicated by official sources.

Just for good measure Mr Lenihan also announced that AIB would require an extra €3bn of new capital while the Irish Nationwide needs an extra €2.4bn.

When the estimated cost of bailing out each institution is totted up, the total comes to just more than €50bn.

That is a truly terrifying figure, the equivalent of about 40pc of the value of this year’s economic output as measured by GNP.

The reaction to Mr Lenihan’s announcement was immediate and severe. The government was forced to cancel the last three monthly bond auctions of 2010 as international investors insisted that the government devise a credible fiscal strategy; while the political system went into a deep shock from which the only escape route is likely to be an early general election.

Unfortunately, things aren’t as bad as Mr Lenihan told us last week.

They are almost certainly much worse.

First things first. Even the €34bn cost of bailing out Anglo, which the government insists is a “worst-case scenario”, will almost certainly be exceeded. That is the view of ratings agency Standard & Poor’s, whose bearish stance on the likely cost of the Irish bank bailout has consistently been vindicated by events.

For what it is worth, some analysts now reckon that bailing out Anglo will cost up to €40bn.

This would push up the total cost of fixing our banks to €55bn.

However, horrific and all as it might be, a €55bn tab for sorting out the banks might be just about bearable if we and our creditors could be confident that this was the final figure. Unfortunately we can’t be sure that the meter will stop running at even this enormous figure.

When one looks closely at the figures published last week it is clear that, with the exception of Anglo, the extra capital being pumped into the banks relates almost exclusively to losses suffered on loans being sold to Nama or, in the case of AIB and Bank of Ireland, loans of between €5m and €20m that had originally been destined for Nama but will not now be transferred to the state’s bad bank.

Which, of course, begs the question, if the banks have suffered such horrific losses on the loans they are transferring to Nama, about a fifth of their total peak lending, what sort of losses can they expect on their other loans?

When it published its half-year results on August 4, AIB revealed that, after transferring about €23bn of bad loans to Nama and the disposal of its Polish, American and UK interests, that it would have a loan book of about €81bn.

This loan book will include €27bn of Irish residential mortgages, €32bn of business banking loans, €16bn of commercial and SME loans and €6bn of personal loans.

Over at Bank of Ireland, the composition of its expected post-Nama and disposals loan book looks remarkably similar to that its great rival.

Bank of Ireland is expecting to have a total loan book of €82bn of which €28bn will be Irish mortgages, €31bn of non-property lending to SMEs and other corporates, €24bn of property and construction lending and €4bn of consumer lending.

Meanwhile, Irish Life & Permanent‘s mortgage banking subsidiary Permanent TSB, which has transferred no bad loans to Nama and has not had to be bailed out by the taxpayer, had a €38.7bn loan book at the end of June which included €27.6bn of Irish residential mortgages, €8.1bn of UK residential mortgages, €2.3bn of commercial lending and €1.5bn of consumer lending.

What are the odds on at least some of the banks’ post-Nama loan books going bad?

Between them the six Irish-owned banks had €99bn of residential mortgages on their books at the end of June. With house prices now down by at least 50pc from the peak and still falling, a significant writedown in the bank’s mortgage loans books is inevitable.

Even a 20pc writedown would cost the banks a further €20bn in fresh loan losses.

The combined €50bn that AIB, Bank of Ireland and the Permo have lent to SMEs and other companies must also be vulnerable to further, substantial writedowns as is their €11.5bn of personal lending. And as for the banks’ non-Nama property and construction lending, I’d be very surprised if it wasn’t cause for a few sleepless nights among the surviving bank bosses.

Add it all up and it is clear that even the €55bn estimate for the cost of bailing out the banking system will be comfortably exceeded, with Standard & Poor’s now putting the likely figure at €90bn.

The way things are going, I suspect that the S&P estimate could well turn out to be a floor, below which the cost won’t fall, rather than a ceiling, above which it won’t rise.

Comment :

             +derivative Losses 200,000,000:00?

This figure is creeping up and up and up and This Minster Lenihan is definitely not firing on all cylinders!

He is going in the wrong direction, Mr Lenihan is still digging an even bigger hole and I think we will not now be able to get out of it without massive help from the IMF.

With the available figures still dirp, dirp, dripping out of the Finance Department I now believe we are looking at a possible 150,000,000,000:00 (Billion) but without a look at the books in Bank of Ireland, Allied Irish bank, and Irish Life and Permanent, remember these institutions are issuing their own bonds and the government are guaranteeing these bonds.

There are bonds coming up for renewal to the tune of 30 to 45 Billion from the various banks and I can’t see how the banks are going to re-finance under the current circumstances.

Needless to say we are not been given the full figures and I expect that Lenihan and his gang of financial terrorists will try to sneak out more bad figures soon ,this would more than likely be done using cronies from the various media they control .

At this stage we the public have been softened up and there is likely to be more and more drip drip feed of bad news.

The government’s attempt to con the opposition parties into a half-baked union is most telling and this tells me that the real figures must be really bad!  Even worse that my figures as I keep reminding people there is no mention of the huge losses on their derivatives trades by the  various banks and these losses will have to be brought out for all to see sometime .  
    
This brings a whole new meaning to the praise “Well connected”
This stinks to high heaven!

http://thepressnet.com/2010/10/03/nama-changes-were-designed-to-keep-bank-of-ireland-private/

and http://thepressnet.com/2010/10/02/majority-of-countrys-banking-system-nationalized/

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