Whatever way they try to spin it, today’s bond issue proves that the markets don’t believe the Irish government’s bullshit. Ireland is paying more than twice what Germany pays for funding, and one major reason for this is the insane Anglo-Irish bank rescue.
Interest rates for Irish sovereign debt are going up, because the government chose the worst possible way to stabilise the banks. So far, they have committed €24.5 billion to save a company that will never do business again and that wasn’t even a real bank to begin with, and nobody knows what the final cost will be. It could be €30 billion. It could be €40 billion of money lost by those who controlled — not managed — this disgrace of a bank. And who loses? Nobody except the taxpayer.
€24.5 billion of your money and mine has so far been poured into a dead bank. We’re sending out the lifeboat in a hurricane to retrieve a drowned man.
Anglo-Irish bank is finished. Kaput. It has no hope of operating as any sort of financial institution ever again, and besides, it was never systemic to the Irish economy. The only systemic importance it had was to those in positions of influence who owed it countless favours. It owned Fianna Fáil, and now Fianna Fáil is prepared to sink Ireland so that Anglo can get a decent burial.
Let no-one tell you that Anglo can’t be wound down.
Its deposit book can be sold off to another bank, in line with normal banking practice. It still has valuable assets. There will be no run on the banks if Anglo were wound down, and nobody would suffer except …
Except those gamblers who bought risky bonds in Anglo, in the hope of making huge profits.
That’s what the Anglo bail-out is all about: rescuing ultra-rich international gamblers.
For this, and to keep their personal dirty secrets under wraps, Fianna Fáil are prepared to sell Ireland into penury, with the support of the Green Party.