Tearing The Hair Out!

February 11, 2013

Well, the Honahan banker puppets fresh from their troika/ECB negotiations that took an unbelievable 16 months ‘fortuitously’ announced their bond deal Thursday last. According to Stephen Donnelly TD the move was ‘fortuitous’ coming in the same week as a court challenge to the promissory notes and threatened action by IBEC’s David Begg (David Begg, General Secretary of the Irish Congress of Trade Unions (ICTU).)  

chart

David’s day of protest against our treatment by bailout lenders and the ECB who’ve saddled Irish taxpayers with the losses of private Irish and European banks was in stark contrast to the general applause ringing out in the Dáil for the Honahan deal of multiple long-term bonds laundering private debt into state debt much to the delight of our lenders who’ve extracted the most that can be got at the moment out of the Irish economy without killing the goose that lays the golden egg.

‘Fortuitous’ as used by Stephen Donnelly on Marion on Sunday RTE was rather naive. A rather more wry understanding of the events of the week above would consider the announcement of a bond deal as directly targeting developing protest especially that of the courtroom.

Meanwhile we hear Honahan has been tearing his hair out at the lack of progress in the banks dealing with the growing amount of mortgage arrears.

http://www.irishtimes.com/newspaper/breaking/2012/1213/breaking16.html

“By value, the amount of mortgage debt in arrears of 90 days or more totalled €16.8 billion or 15.1 per cent of the €111.2 billion owing on Irish residential mortgages, while the outstanding balance on buy-to-let mortgage accounts in arrears of more than 90 days was €7.9 billion at end-September, equivalent to 25.5 per cent of the total outstanding balance on all BTL mortgages.”

Those were December figures. I expect figures to have jumped to €17.5 billion by now.

Now the banks are doing their best to milk this situation for all its worth. Vast amounts of time and expense must be spent by banks chasing down potential defaulters in efforts to extract blood from each one. Never mind the fairness of a deal with A differing to a deal with B or the variability of hard/soft approaches between one bailiff and another, the potential for bog-down in such an approach deserves a smile.

Not the most efficient system, is it? Where, you say,are the long-term bonds for individual, negative equity potential defaulters afraid to spend a penny lest the banks seize it? What about debt write-down? Where are the stats on the progress being made by the banks on the €17.5 billion. What, all secret, unavailable, even though taxpayers own the bank bailouts? What of the fact we are now owned lock. stock and barrel by the ECB, do they not insist on movement in this area?

http://www.thejournal.ie/negative-equity-proposals-budget-2013-650049-Oct2012/

Both in this blog and elsewhere see above attention has been drawn to the differences between the tortuous extraction of debt from those in negative equity in Ireland within the bank torture chambers and Iceland’s approach where debt was written down to 110% of current values at time of write-down following a similar plunge in property values in Iceland.

The hypocrisy of saving bondholders, European and Irish, at expense of Irish taxpayers lies in stark contrast to the Icelandic insistence the people of Iceland would be protected from the ‘Armageddon’ threat of bondholders and other lenders. One should remember and ponder on the way legislation was rammed through Leinster House in our museum ‘pretend democracy’ to facilitate the annexation of democracy in this state due to debt bondage and peonage.

Meanwhile our state lumbers on faced with looming cataclysmic emigration, €17.5 billion of mortgage debt they hide rather than write- down, the largest % GDP of private sector debt in the EMU, one of the highest austerity budgetary claw-backs in the EMU, taxation mounting on further taxation masking as ‘property charges’, 12% rise in price of basic commodities between 2010 – 13, cutbacks in education, health and most places.

Ireland has beached itself like some pilot whale on the shores of the EMU where its left to die a quietly with salaries, perks of the rich protected at all costs as the ship ‘democracy’ goes down.

Honahan has torn all his hair out on his way to dictatorial oversight of the ECB of Ireland’s squandered democratic rights. He’s about as bold and bald as prospects for economic recovery of Ireland Inc under the troika.

And I havn’t even mentioned  Ireland’s budget deficit. Nuf said.

End.

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