Irish Bank Guarantees

 Posted by on February 17, 2009  Add comments
Feb 172009
 

Correct me if you think I’m wrong, but I believe that an agreement depends on both parties meeting their obligations.

Otherwise, it isn’t an agreement.

It now seems that the Irish government guaranteed a mind-boggling amount of money, €450 billion, on the basis of lies.  Anglo-Irish Bank falsified its accounts, and now it seems Bank of Ireland and AIB may turn out to have significantly more bad debts than was disclosed on the night of the guarantee.  Irish Nationwide, of course, is a joke bank, as I’ve been saying here for quite a while.

Brian Lenihan offered this guarantee without knowing how exposed the banks were to bad debt.  In other words, he wrote a blank cheque, using the sovereign resources of this country, paid for by you and by me.  He offered your wages and mine to the crooks who head our banking system without imposing a single condition on them.

Now, this bank guarantee threatens to drag this entire country into oblivion if it turns out that the banks have more bad debts than we thought, because the government will have to cover those losses.

What does this mean?

It means wholesale job losses, evictions, poverty and hardship.  That’s what it means, because bastards like Seán Fitzpatrick and Fingers Fingleton have been playing the odds in the financial bookie-shop for years, and because they and Fianna Fáil are so closely bound together that the government can’t afford to let them fall in case they start talking.

It means that the fault for this disaster lies with the banks, the finance minister, the Taoiseach and the deeply-ingrained corruption at the heart of Fianna Fáil.

It isn’t about people maxing their credit cards, or taking out big mortgages.  Those people will eventually pay off their debts after a strong dose of reality hits them.

It isn’t about nurses, teachers and firemen being paid too much.

It’s about the banks lending ridiculous amounts of money to speculators, who were in bed with the ruling party in this country, without any regard to the possibility that those speculators might not pay them back.  It’s about the Irish government, led by a corrupt party with a vested interest, protecting the people who have traditionally supplied the bribes that keep them in comfort.

It’s about the chairman of the most crooked bank, Anglo-Irish, being a close buddy of our former prime minister, Bertie Ahern, who jumped ship with impeccable timing, just before the whole mess exploded.

It’s about Anglo-Irish bank fraudulently lending €300 million to 10 members of the golden circle that surrounds Fianna Fáil, to buy its own shares.  It’s about the fact that those loans were 75% secured against shares which are now worthless.  It’s about the fact that this money is lost to the State which now owns Anglo-Irish Bank.  It’s about the convenient legal flaw in the loan agreements relieving the 10 crooks of responsibility for giving back the remaining €75 million they were lent.

Did you ever borrow money from a bank?  Did you ever get to keep the money because the bank made a mistake in the paperwork?  No.  Me neither.

It’s about Fianna Fáil guaranteeing Anglo-Irish Bank instead of letting it collapse as it deserved to.

It’s about our incompetent finance minister pumping €7 billion into Bank of Ireland and AIB, even though any intelligent observer could see it wouldn’t be enough.

It’s about the fact that he did this without knowing how bad the situation in those banks was, and he still doesn’t know.

I’ll say this again.

Anglo and Irish Nationwide were joke banks and should never have been propped up.  They were not part of the legitimate economy and would have crashed without too much damage to the country.

There’s more to this bail-out than meets the eye.  Any rational government would have conducted due diligence procedures before offering any guarantees to the remaining banks, but this government didn’t.

Why?

Because they’re afraid of their lives that if any of these crooks end up in the dock in front of a judge, they’ll start singing, and they won’t stop singing until they’ve named every last politician who was on their payroll, and every last dirty deal facilitated by the ruling party in return for that largesse.

Consequently, they jeopardised the futures of every person on this island, and those not yet conceived.

It was treason.

Go and dig into this, and you’ll see where the cancer started and how it spread.

You want directions?

Ok.  Start with Haughey and follow your nose, if you can stand the smell.

_____________________

Also on Bock:

________________

Elsewhere:

Irish Times: Bank guarantee likely to deal a crippling blow to the economy

Problems in real economy dwarf those of bank sector

  35 Responses to “Irish Bank Guarantees”

Comments (35)
  1.  

    “Correct me if you think I’m wrong”

    You are not wrong Bock, you are 100% correct.

    Fianna Fail are prepared to beggar this country just to stop the truth coming out.

    Patrick Neary was paid “Hush Money”. Told to go home look the door and draw the curtains.

    Who authorised the additional €240,000 (I think). That cannot have been done at the Office of the Regulator. It had to have been done at the very least at Principle level in the Civil Service. A Minister must have known about it.

    Why was Neary paid more that he was due. Did he sign an agreement in return for this additional payment?

    Why are the Green Party still supporting this corruption?

    This is not the end. It is only the begining of the end. Let’s hope its the end of Fianna Fail & The Greens. And God help us with the choices we have left.

  2.  

    Fianna Fail have practiced common or garden corruption for the past quarter of a century.

    They have stepped over the line into Treason (Article 39 of the Constitution). Treason does not require violence, but it may include violence.

    Fianna Fail, being so corrupt, are incapable of knowing the difference between common or garden corruption and Treason.

    We are lost.

  3.  

    Hopefully this message will get through to every voter. The other shower however are part of this same corrupt system by which we are governed. I don’t see the solution yet although I know what I’d like to see happening.

  4.  

    All right, fuck it.. I’ll be back early April. Don’t start the revolution with out me.

  5.  

    The C.E.O. of Benardos put it well. We are committed by this shower in Office to the pitch of Croke Park covered in fifty euro notes to the height of an average room ! But not to worry the leader shall see us through .Follow me lads, I am right behind you ,If things do not work out? Fuck them if they can not take a joke. F.F. are God’s chosen and shall rule for ever .
    The sad thing is that the sheep and the dead of this dear sceptic Isle shall ensure that they shall.

  6.  

    And whats the first thing the banks do when they get 7 billion from us? They put 2 billion into a fund for first time buyers, they still think that their buddies, the developers will save them, flogging houses that wont pass the new energy regulations. Who in their right mind would buy a house now when next year there will be a fire sale.
    They are still in de Nile and we are up shit creek. Will they just tell the truth so we can get on with things.

  7.  

    The Government, of the Green Party and Fianna Fail, are working day and night to split the opposition to their rule. The despicable campaign to vilify the public sector workers is the rotten ‘answer’ of a government in crisis.

    But what alternative do Fine Gael, Labour, David Begg and the trade unions and Sinn Fein have to offer?

    The whole of the Irish banking system is a ‘joke’. The whole of the world banking system is a ‘joke’.

    The current political parties and system have no solution to the economic abyss we heading for.

    The credit/speculative boom instigated by American capitalism in response to economic crisis of the 70’s (and political crisis from 60’s through 70’s) has brought the world economy to the state where masses of fictitious capital must now be destroyed.

    The only answer the capitalist class have is to destroy the world economy and restore real profit into their (profit based) system.

    The only answer the mass of humanity have is to destroy the capitalist political system and replace it with a world planned economy. This can come about no other way than through the building of a mass socialist party.

    This brings us to the problem of Labour, Trade Unions and Nationalism.

    There should be no illusions in these institutions and ideologies.

    Any other party who promotes the illusion we can pressure the ‘Labour movement’ to bring about socialism is perpetrating the most dangerous deceit on the people. Neither is there a Nationalist answer – the economy is truly one global entity.

    The system cannot be reformed. It must be ended and replaced with a rational planned system that addresses the needs of humanity and frees the productive forces to grow exponenetially.

    Everything now is political.

    I refer the readership of this site to the recent articles by Nick Beams on the world economic crisis found on the World Socialist Web Site.

  8.  

    So, your saying the Ferengi got us into this mess?

  9.  

    When the banks sort themselves out they will go in an opposite “puritanical” direction and it will be impossible to get a loan off the fuckers. You’ll be greeted at the bank door by some geezer that looks suspiciously like Nosterfatu. He’ll have long feline fingers, The town clock will be chiming midnight, He’ll have no reflection in the mirror. “Can I borrow a fiver,” you’ll implore. “Borrow, you want to borrow from us”, he’ll shriek as he closes the creaky door in your face. And the bats will be circling your head and the wolves will howl in Capanti woods. And as your children huddle around a candle for warmth at home, their rib cages clearly visable from the hunger, it will come to pass that you will will cast a envious eye back to those days of wonder when the Celtic Tiger was roaming the land and the bankers were rushing forth into the streets offering €500,000 mortgages to winos, with the money for a top of the range Audi thrown in.

  10.  

    This mess is the result of deregulation and globalization for whom all political parties have acted as cheer leaders . Now that the ordinary decent citizen must pay for this crisis. I do not expect to see any of these criminals end up in jail where they belong. 276 people were jailed last year for failing to repay loans to banks and other financial institutions so where is the equal justice as promised by our constitution?. Please see the link

    http://www.responsible-credit.net/index.php?id=1980&viewid=42333

  11.  

    As ever, well said Bock.

  12.  

    Well said Bock. Every word true.
    Where’s the alternative though? The other lot seem to be just as incompetent but at least they’re not as corrupt. Maybe there’s hope because mistakes are excusable but corruption is treason and should not go unpunished.
    Maybe we should set up a tribunal !!

  13.  

    de fan said
    February 18th, 2009

    And whats the first thing the banks do when they get 7 billion from us? They put 2 billion into a fund for first time buyers, they still think that their buddies, the developers will save them, flogging houses that wont pass the new energy regulations. Who in their right mind would buy a house now when next year there will be a fire sale.
    They are still in de Nile and we are up shit creek. Will they just tell the truth so we can get on with things.

    And don’t forget BOI’s interest rate of .04% lower than their standard one! I mean, is it me, or are interest rates not extremely low by historic standards?

    As if the interest rates are the problem. As you say, there’ll be a fire sale, and people will start buying again when prices drop to levels comparable with people’s incomes.

  14.  

    Comrade Mervyn
    The idea of “from each of his abilities to each his needs” has been tried and failed. As an active member of my Union I find your comments rather sad. Perhaps it might be better directed to the Banks and Government. Next Sat. there shall be a March in Dublin . Perhaps you and all may think of coming along?
    Alternatively lie back and try to enjoy it . It wont hurt that much and you will get used to it .lounge live our Lords and masters.

  15.  

    it started with Eamon Dev, the dirty FF swine.

  16.  

    Mervyn,

    And when you get rid of the farmer will we be able to tell the difference between you and the farmer.

  17.  

    Gombeen Nation,

    You are more correct than you seem to know.

    The problem with Sub-Prime loans in the US was essentially twofold.

    1. Teaser Rates
    2. Excessive income to loan ratios.

    followed by “resets” at a time when interest rates had risen.

    Result ~ Instant default.

    That’s what BoI are offering. That’s why they and Fianna Fail are patently incompetent.

    We are in deep trouble if our leaders think this is a ggod thing either for those who will make themselves debt slaves for life or for the economy as a whole.

  18.  

    Ah yes Abbot but it may save some FF developers.

  19.  

    Not such an old article Mr Magoo – 1st of Feb this year! Very interesting though. Mind you they say a week is a long time in politics!

  20.  

    Another thing, wouldn’t these 10 have been issued share certificates? Wouldn’t this be in the company register, or on some other records?

  21.  

    Bank Guarantees to Fuck over the Country..

    We will see that headline in a paper one day

  22.  

    OrganDonor,

    I know Bock said no more serious comment, but the headline is “Bank guarantee likely to deal a crippling blow to the economy”.

    Published on Tuesday.

    Here’s the link.

    http://www.irishtimes.com/newspaper/opinion/2009/0217/1224241278003.html

  23.  

    It’s already in the post if you care to look.

  24.  

    Thanks for eh,clearing that up there Iona..

  25.  

    Just like me. Some day I’ll get a brain.
    Saw what you said and went straight to comment.
    I will be more observant in future.
    Not everybody who never voted for Fianna Fail is perfect.
    Still, maybe were not the worst off, one hope is that some other place blows up before we do.
    But then, how could you wish it on others.
    You may need to hold your nose.

    http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4623525/Failure-to-save-East-Europe-will-lead-to-worldwide-meltdown.html

  26.  

    Gary Ireland – There is a world of difference betwen the Tops and their cronies in the Trade Unions and the rank-and-file members. My warning is that the Trade Union leadership WILL betray, and concious workers must develop an alternative.

    Also, so-called left groups who promote the illusion that the Trade Unions (and Labour Party) can be pushed to, for instance, nationalise the whole banking system and put it under the democratic control of the whole population – these ‘left’ groups are part of the ‘democracy’ confidence trick.

    The boom was a giant swindle perpetrated on the mass of the people.

    All prices inflated grossly; and most had to get into debt to provide the basics of life. Mainly a house (because the state also abandoned it’s limited house building program to facilitate the banking/construction/property crooks); but also day-to-day bills.

    Now the state uses the (regressive) taxes taken from the citizens to wipe out the ‘contract’ between the banks and the speculators & company. In other words those gangsters who owe don’t have to re-pay; and the bank gets ‘re-capitalised’ with the state finances.

    But will that be the case for us?

    At the moment noises are being sounded about houses not being re-possessed etc.

    My warning is this – if the Trade Union and Labour misleadership, along with those who cover for them from the left, are allowed to proceed unchallenged, then the working class will suffer a massive defeat, and then the dues for the economic catastrophe will fall on them.

    This can only mean squalor and misery of historic proportions; and can only be imposed once the organisation of the working class is smashed – the common resistance of solidarity is atomised.

    Gary Ireland – I find your comments smug in the extreme. Redolent of a Union hack.

  27.  

    Comrade Mervyn

    Dear Sir and Brother,

    A union “hack”? Perhaps in your view . I have been General President of two Trades Unions in my life and am very proud of this fact. The positions did not have any form of salary or rumination
    .In a Democracy unless we chooses to try a go at the G.P.O. with AK47,s where do we go?
    In the real world your ideas shall not work.

  28.  

    After thought
    why not join a Trades Union yourself. Try to change the the World by talking with others.
    who knows you may end up as Prisedent yourself!

  29.  

    mr. Magoo

    Interesting link. However relevant to this discursion? I am of course open to change. However I fail to see the point you try to make. The Bankers rule .

  30.  

    Just a link that I thought might be interesting with reference to Bocks original post
    “Go and dig into this, and you’ll see where the cancer started and how it spread.

    You want directions?

    Ok. Start with Haughey and follow your nose.”

    You correct of course as it does indeed seem that “The Bankers rule”
    And you and I will be paying for this Rule till the day we die.

  31.  

    Maybe this more on theme Gary

    http://www.fxcentre.com/news.asp?2365471

  32.  

    Many years ago I complained about the opinion of the Department of Finance ,that I was having at the time a problem , to a minister in charge of the issue involved . She emptiest with me and explained that the Department are all of our Bosses .The same people that got it wrong by a few billion on the up side and now on the down side.
    Ho Hum let’s us all lie back and enjoy ,it may be the last ride.
    However there shall be a march on Saturday to give the lower orders a voice.
    Ute People united shall l never be deafest

  33.  

    Well a hundred Thousand “estimated” by senior Guards. The actual number was much closer to one hundred and fifty thousand Men Women and Children. Shall it make any difference to the shower of psycho in Power ? I doubt it. The only point that will get through to the Mob will be leaving them without power.
    Let us get rid of this Filth soon.
    The next march should number four million! Get up off your bum and Join in, or just lie back and whine, like the puppy dogs the people have been for Decades .
    It is about time we stopped electing “cute whore” sons and Daughters of other “cute Whores” they and there playmates from the tent have screwed this country..
    Long Live the Republic and the People.

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