IT’s All About Anglo!

July 19, 2010

Notice how Lenny is wringing his hands of blame for the financial meltdown. In his Ballroom of Romance fairy tale, the DofF slowly leaked power into the Dept of Taoiseach during the time Cowen was in charge of Finance.

Here’s another reading of the meltdown. Its all about Anglo. From early 2008 warning signals were coming out of Anglo all was not what it seemed.

http://bit.ly/aKT93m

“An investigation was launched after it emerged that Anglo had transferred €7.45 billion to IL&P as an interbank loan – but when that money was lodged back to Anglo from IL&P it was treated as customer deposits rather than an interbank loan. The effect boosted the balance sheet of Anglo Irish Bank, potentially misleading investors into believing the bank was more stable than the precarious position it held.”

There’s a good chance under the Regulator, Neary, the above scam wasn’t implemented once, but a number of times.

Similarly on the date of the guarantee, http://bit.ly/cM2FRT the possible exposure/liability of the state to Anglo was given at €8 bn, yet its now flagged as €22 bn , with a total cost to the state if Nama tranfers are included of upwards to €50 bn.

Given the emerging catastrophe scenario of Anglo following the time of the guarantee, Lenihan still persists in calling the Guarantee exposing the state to upwards of €500 bn , the correct decision.

Sadly, given the growing shambles of NAMA and deteriorating ratings by Moody’shttp://bit.ly/ce5dOO , Ireland INC Lenihan/DofF bailout of Ireland is reckoning up to be the worst and most expensive bailout of any country in memory.

The markets are not reassured by Lenihan’s ‘fools rush in’ blanket guarantee, NAMA and subsequent response to Ireland INC’s banking crisis, in spite of warnings by Merrill Lynch et al. Its clear the blanket guarantee put everyone on Ireland Inc into an economic ferry feted like the Titanic as it set off with Ballroom of Romance celebrations. Few saw the rear cargo door of the ferry was not properly closed and water was beginning to pour below deck.

It would appear Ireland INC is creating the perfect storm for an
even more catastrophic double dip recession that will hit as soon as austerity measures hit the fan.

All of this was not meant to be.

In the Ballroom of Romance the ugly sisters of Anglo and Nationwide were leading the ball. The notion they could fail flagged by Merrill Lynch et al was bagged and buried throughout 2008.

When the ball was over, the notion that Anglo could be excluded from the guarantee was stamped out by politico/FF cronies of Lenihan including Lenihan himself. The blanket guarantee bet the country’s taxpayers against the potential losses of Anglo and the Irish banks. NAMA was made ready to fly away into profit on the updraft of recovery fed by the blanket guarantee.

The roulette wheel was spun. The downgrading of Ireland INC by Moody’s represents the defeat of Lenihan’s policy to save Anglo at any cost to the Irish taxpayer:

http://bit.ly/b0Rzy6

Moody’s downgrades Irish government debt rating
(AP) – 4 hours ago
DUBLIN — Moody’s ratings agency on Monday downgraded Irish government bonds by one notch due to a deteriorating economic outlook, a heavy debt burden and liabilities in the banking system.

Ireland was hit hard by the global financial crisis as a collapse in the property market nearly took down the banking system. It was also among the first European countries to impose painful austerity measures to tackle the outsized public debt load.

In a statement from its office in Frankfurt, Moody’s s Investors Service said it dropped its rating on the government bonds from Aa1 to Aa2.

“Today’s downgrade is primarily driven by the Irish government’s gradual but significant loss of financial strength, as reflected by its deteriorating debt affordability,” says Dietmar Hornung, Moody’s lead analyst for Ireland.

Moody’s noted that government tax collections have fallen has gross domestic product has declined since 2008. The general government debt-to-GDP ratio has risen from 25 percent before the crisis to 64 percent and is still rising, Moody’s said.

The rating agency said it was also concerned about Ireland’s weaker growth prospects because of the severe downturn in the financial services and property sectors, and a contraction in private sector credit.

The third factor worrying Moody’s was “the crystallization of contingent liabilities from the banking system, as represented by a series of recapitalization measures” and the need for Ireland to create a National Asset Management Agency (NAMA) to take away bad loans from banks.

Standard & Poor’s downgraded Irish bonds from AA+ to AA in March last year, while Fitch Ratings cut Ireland from AAA to AA- in two steps last year, according to Barclays Capital.”

Notice the ‘third factor above’. Its a formal statement the rating agencies are deeply worried at the policy chosen by Lenihan and DoFF, the policy of saving Anglo, the FF croney bank.

Anglo is a leech on our democratic freedoms, a travesty of justice, a casino bank that should be wound down asap with a proper Garda fraud investigation.

Should Neary be behind bars for his role in the schenanigans? Instead of which, the Irish taxpayer is being milked for upwards €50 bn squandered on a property roulette monopoly by the FF/Anglo/Nama oligarchy.

Lenihan has lost the bet and all bets are off as we head towards default.

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2 Responses to “IT’s All About Anglo!”

  1. Thomas said

    An excellent account of the real facts
    Thank you keep up the great work !

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