Look at this.
The deposit books of Anglo Irish Bank and Irish Nationwide are to be sold off to the highest bidder, just like I said they could back in August when Lenihan was still telling us such a thing was impossible.
Here we have the final confirmation that it was never necessary to pump billions into Anglo. The depositors are safe They’ll be taken over by another bank — Santander or somebody like that. It was always going to be possible to shift the deposit book, and therefore Lenihan’s scare tactics of warning about a run on the banks was never anything but a puff of smoke. It’s in the blood. Same bullshitting family, different generation.
Meanwhile, your €30 billion has gone to pay off the debts run up by Seanie Fitz and Fingers Fingleton. It has gone to make sure that the international investors who foolishly put money into the two scams don’t have to carry the consequences of their own ineptitude.
Thirty billion euros of debt on the heads of the Irish people to pay off losses caused by defaulting property developers who were lent money by bankers without an ounce of care as to whether it was prudent to do so.
Suddenly it becomes your problem, and suddenly you take the hit in your pay packet.
Now draw the connection. Forget nurses and roadworkers and teachers and policemen. This is where your money is going: straight into the accounts of the huge investment corporations who advanced the cash to Anglo and Irish Nationwide, in the belief that they were taking a commercial risk.
Not so. The laws of capitalism has been suspended for these folks. There is no risk, only profit, paid for by Irish workers.
So the next time you hear about a cut in pre-natal care, or a reduction in special needs assistants, or an increase in income tax, remind yourself why. It’s because Seanie Fitz and Fingers Fingleton borrowed a huge amount of money, lost it and got rescued by the Irish government — Fianna Fáil — taking money out of your pocket to do so.
What secrets rest within the walls of those two rotten money-shops? Who do Seanie and Fingers hold embarrassing paper on that a government would be willing to bankrupt the country to protect them? Why would a party which has been in existence almost as long as the state commmit treason?
There must be some mighty embarrassing names in those loan-books, and some mighty interesting transactions.
Perhaps we’ll find out soon, or perhaps we won’t. Who knows?
Meanwhile, Alan Dukes has been taken to task for pointing out that the banks will require another €15 billion in rescue money, but I think people are attacking him unfairly. Dukes doesn’t seem to be saying that the government should hand over this money. He seems to be saying that Ireland can’t carry these losses on its own, as we all know, and that the Irish banking problem is part of a much bigger, Europe-wide problem. The Wall Street Journal seems to agree that the bondholders need to be part of the solution, and quotes the example of Kazakhstan which, unlike Ireland, immediately got the creditors involved in a solution to its banking crisis.
Decoding Dukes’s statement, I think he’s preparing the ground for an organised default with the blessing of the ECB. Or to put it another way, burning the bondholders.
Which is as it should be. They took the risks, and they should take the consequences when things go wrong.
I didn’t lend the money that Anglo lost and neither did you. Why should we and our children make up the losses?
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