THE GREAT PROPERTY SCAM IS BACK TO RIP US OFF: (DMcW April 21 2010)
The Cronyist Bankocracy of Ireland.
A network of interests holding in place a property bubble making economy which pumps the price of property up and up, again and again for loadsa money.
‘Property bubble making’ economy.
A professional class of lawyers, accountants, politicians, bankers and admin under the grip of greed and amorality prepared to put their own selfish interests above all else.
Tools of the community like media and credit provision under the control of a professional class whose own self interests reign supreme.
Link this cartel of interests up and lock it down into the hubs of power and connect it into a gigantic money printing machine like the ECB and we get NAMA and bank guarnatees and ANGLO and banking tyranny.
Banking tyranny is NOT bankers in suit and ties behind a desk handing out spurious loans.
It is a well connected, well organized, well planned and well executed economic program.
It is an operating program in the hard drive of credit provision and poses as the only show in town and the only way to do business etc etc and gradually over time manufactures a culture of falsity on free markets and labour provision and debt consumerism evolves and slowly and ploddingly society becomes hollowed out and needy and dependent and trance like and forgetful and the debt money system and its false paradigm become all truth.
Inter generational private pools of capital, under tight control and umpteen bodies overlooking and controlling it and what are we getting, we are getting destruction, destruction, destruction.
Our society holds energy of wealth circulating through the cash ecosystem and yet we are been faced with the powers at be significantly destructing wealth and abusing the system in a systematic fashion.
A Cronyist Bankocracy rules and is using the system to shrink wealth, this is what I am getting at in my post above Fergal42, shrink wealth and steal the wealth.
If one looks at the credit system and one hears of the amounts on cash moving about in the background been given to the banks to bail them out and it happening without resistance and no questions asked and no heads rolling one can only but be asking, hang on a second, why can that not be done to build more hospitals and schools and do anything we want done that benefits all of society and that supports freedom.
But, if one looks at it from an alternate angle and see’s throught the propaganda what surfaces is a cronyist bankocracy working a set of rules in the background that has been kept hidden from the rest of the masses. And one must consider that the system we thought worked in the favour of the regular citizen is in fact been used in a way which is not adding up which ever way one applies common sense and knowledge to even the main basic information on all of this stuff we see on nothing more basic than the 6 o clock news.
In the system there is an unlimited wealth creation ability and there are self serving ruling elites stifling this and interfering with it to stop this unlimited wealth creation from happening.
The system is designed to suppress wealth.
We have to turn this on its head. Find the energy to turn it all around on a micro level, individually and in step with reclaiming ones own personal power back.
Are you with me so far dear reader.
So, we must believe its possible to reverse the process and shift the power away from the suppressers of the wealth creation, the cronyist bankocracy holding down the system and take the power back on a micro level.
One can do this by quietly deciding to start to walk more each day instead of using car.
One can start to eat a better diet and work from there.
One can start to slow down breath control a little day by day.
One can select out of diets hydrogenated fats, less sugar, high fructose corn syrub eradicate from diet and so on.
Simple micro level choices all add up.
The crony bankocracy functions on the basis that people are laizy and not interested in been healthy and wanting a more fuller life.
ENTREPRENEURS AND ARTISTS: DMcW (March 20 2010)
The POnzi property bubble was engineered by ‘insiders’ in alignment through a crony network working the hubs of K club, IBEC, dail and meeja houses.
All tapped into the AIG provided arbitrage fad which made possible to go max on banking fractional reserve and milk juice and game the rigged market in Ireland in property till the bubble burst.
…..and logical deductive reasoning follows that contingencies in place and had ready to go when the Ponzi property bubble burst.
In my opinion the bubble burst sooner than they had anticipated …. which threw them for a loop and meant the clean up became alot more sloppier and hence we have the ANIB / GUARANTEE / NAMA panto unfolding before us.
Reminds me of a gangaster plot and the mop up after the crime goes pear shaped due to an unforseen event.
Whats the unforseen event in this case.
I think it is the bubble bursting sooner than the insiders expected it to burst so they were literally all caught on the hop.
Actually, I think all of this farce since the bubble burst is more about ’sloppy’ getaways in the glare of headlights more than anything else.
…and up until now the whole debacle has managed to hold even though most people hearing and watching the news on all of the post bubble panto stuff smell a rat, but cant seem to just get the right picture on what is going on.
Which again appears to me to be the following……..
The Ponzi property bubble burst sooner than expected and the engineers and beneficiaries were literally caught ‘in the POnzi scamming act’.
Maybe they just could not pull themselves away from all the riches the Ponzi property scam jackpot was dishing out and in their hubris and omnipotence figure it s all manageable (like harry on late late) and they figure they have the ‘dough’ to do whatever they want anyway.
– Performing loans are performing loans and so red herring.
– Recap of the banks is what it is a theft of taxpayers monies.
– The NAMA 55 billion in freshly minted ready cash will be taking by the banks and never see the light of day. The debt the NAMA cash is built on will be passed onto the irish taxpayer and never be paid.
– SOvereign debt de fault if it occurs will occur because the banks see a killing in it.
– the national debt will never be paid only put on the long finger into the far distant future which will never arrive and it is this ‘pile on the debt fantasy’ that the elites use to rob and pillage and plunder the real wealth of this country decade after decade after decade.
What is the point contributing innovative ideas into the market place when the whole edifice is rigged.
MINISTER AND MANDARINS – DMcW (DEC 10 2009).
David, this is spot-on. The only caution I can offer is that it may be even worse than the “one-eyed” problem.
I saw Cowen being interviewed last night on TV and he bounced in his chair as he said, “What we want is confidence, confidence, confidence!”.
That may be the idiotically simple explanation for Lenihan’s assertion that “The worst is over”.
These two gentlemen appear to be of the view that a simple confidence-trick will fix the economy that their slash-and-burn policy has sent deeper down the spiral.
With €2 billion taken out of the economy last April, the defecit has grown from 6.4% to nearly 12.5% now. The €4 billion being removed now, they seem to believe, will reverse that trend.
At best, the current helmsmen are confidence-tricksters; the more innocent explanation is that they are stupid; at worst, though, they may be crooked gangsters performing daylight robbery in an inverted Robin-Hoodism: taking money from the poor and giving it to the rich.
Brian Lenihan is the first recorded Slave Trader in recent Irish History and his Budget is a Pipers Dream .He is a Fudger and a ditherer and his procrastination is a dancing act .He is surrounded by dangerous people that we have not really found out and he is protecting their NAMA .
David says: “At its most basic, the way we calculate economic growth is by adding together four variables: consumption, investment, government spending and exports and then subtracting imports.”
This omits the key variable in present circumstances, which is the public sector borrowing requirement.
Lenihan too, carefully avoided much discussion of this subject in his budget speech:
“Some have argued we should continue to borrow and wait for the economy to grow again before tackling the budget deficit. There are three reasons why this is not a viable proposition.
First, we know from the 1980s how large deficits, left unchecked, can lead to a dangerous spiral of mounting debt and ever increasing interest payments. Never again should we return to a position where all of our income taxes go to pay interest on the national debt.”
However, earlier in the day Alistair Darling underlined the dangers of reducing that requiremsnt in his UK Budget speech:
“Backed by legislation introduced today, the Government will ensure: public sector net borrowing, as a share of GDP, falls every year and is more than halved by 2013-14; and net debt, as a share of GDP, is falling in 2015-16. I believe this is a sensible timetable.
To consolidate too soon, too quickly or too indiscriminately, as some have proposed, risks delaying the recovery and threatening a longer recession.
When Japan tightened prematurely in the 1990s it pushed the economy back into recession, making debt and deficits much higher, not lower.”
This underlines the danger in putting on the brakes too suddenly as Lenihan seems to have done.
Malcolm McClure, absolutely correct – the downward spiral will be accelerated by the budget.
..and an acceleration of a downward spiral in this situation is an intensification of the hoovering up of any real wealth left swilling around post POnzi bubble to be transferred upwards.
You don’t mention the amounts to go out of the country servicing the debt of all sectors, or the extent of personal indebtedness constraining further borrowing for consumption, conspicuous or otherwise. Any prudent family will batten down the hatches, and save every cent by any means, whether going across the border or purchasing online from the UK. Lenihan is looking good, and trying to show he is in charge, so once again the people can be satisfied that someone has taken charge and will deliver relief for their multifarious demands. Public service bashing will continue like a purge with more job losses, destabilising retirements at senior levels, and relentless erosion of pay to mid-nineties levels to discourage interest in a career in any public sector employment. The shift to a flexible work force, with levels of unemployment consistently above 10% for decades has begun, and the corporate tax rate “brand” of 12.5% will not provide sufficient long-term employment to sustain the economy, never mind provide growth. But the government has now passed the three tests for this year. Next year the chickens who have come home to roost transform into voracious pterodactyls.
Freud said that the Irish were impervious to psycho analysis. Many Irish take this as a complement but fail to acknowledge the reason which he claimed that the catholic church had done such a bang up job on the Irish psyche that nothing was getting through.
diciples of Friedman and the removal of any element of community value in the model of the individual that the current theories of economics propound. I recommend the films of Adam Curtis for an enlightened look at the forces that turned the world we lived in in a cold in humane direction. But I believe the experiment has run its course and that society will change course for the better. Pity it was such an expensive lesson. I do believe ireland is a special case and needs some paradigm shifting and various apple carts overturned before all they hold are bannans.
And they have produced the Boom, the crash, the ANIB bailout, the INBS-EBS bailout, the Permo loan, bank regulation by dummies, the K Club model of corporate deal making, the 800 quangos and counting, the Bertie Bowl, the Iarnroid Eireann timetable, Rip Off Republic, the “drinks cabinet” model of government and NAMA. Oh yeah, and don’t forget the continual refrain from our betters to “celebrate” with “pride”.
Who dares speak the truth at any level of power in this society? Furthermore, the mindset of those who are promoted to the highest positions, whether by election or appointment, expresses the consensus of their client group. There is no way out of this quagmire other than perdition, or purgation, and the new order will be generated from the same social conditioning and genetic disposition. The genie is out of the bottle everywhere and the chaos of Pandora will lay waste to the best laid plans of the wisest councils.
n Ireland it is more tightly nit and concealed due too the irish knack for ‘gombeenism’ and the tribal nature of the structure of our society in Ireland.
You call it spot on using the term ‘panglossian’. I’d go further and call it ‘dr.strangelove magical thinking’.
We / Irish society, what’s left of it post paedo cleric’s, porno property profiteering, bankster state takeover of tax revenues and power transfer too NWO masters at ECB, apart from all that, we are witnessing a meltdown in D4 / official ireland community contact in ‘reality’.
To utter such dross part of a PR stunt too conjure up international confidence in our economy exemplifies a splitting off of a subsystem of power from the trunk of the tree.
And the ruling powers are not even registering how far up the ‘cul de sac’ the self conceited policies are taking Ireland.
Layers of self deluded lie’s piled on top of self deluded lie’s.
The budget is a beast of burden because of the banks banking business model. To overlook this in seeking out clawbacks is treasonous.
We are facing a country under some type of financial dictatorship control. This is a criminal group robbing the tax revenues from the taxpayer.
This must be called out for what it is.
No implied consent.
The country is been robbed by the banks.
I implore you DAvid too blow the whistle and call this out for what it is.
Banking tyranny control ruling Ireland.
I run a business and I don’t think its that different to running a country ( I have no ambition to run a country )
Anyway in business I must take in more than I spend . I must have good cashflow , get paid on time and I must have orders with a good margin .
If I have a cashflow problem but I have orders well I have to tackle the cashflow problem . Cut costs , tighter credit , hound my clients for payment etc .
If I have no cashflow and no orders then I am one step away from going out of business and I had better do something quick smart .
If I have good cashflow but orders are down I have to get the sales suit on . etc etc .
Anyway Ireland has a cashflow problem , ie banks , falling tax revenue , high costs ( wages , the President , Mary Coughlan etc ) But Ireland also has another problem as it has no orders (the unemployed ) .
However Ireland is only trying to fix the cash flow problem . Its trying to balance the books in such a way that we can continue to do business with massive credit from the ECB .
The main problem with its cash flow is the banks but they are ignoring that by putting it off balance sheet .
So to conclude ( as I am now confusing myself ) the best that Ireland can hope for is that it can balance the books while depending on handouts from the ECB while hoping that something magical will happen with the banks and Anglo will just go away somehow .
The ’serfdom’ under debt peeonage have a cash flow problem.
This would be the section who do not own their house, outright and bought into POnzi property bubble post 2000 and are not casino gambling for a living,. and if you do the stats we get..
55 % own their own home outright.
Approx of the 45 % who do not i reckon say half are casino gambling for a living so that leaves 23 % who are ‘hard for cash’.
So, Ireland is NOT hard for cash, this is a piece of confidence trickster propoganda (not saying you are alan).
The economy itself is in a slowdown.
The slowdown is due too a crash on banking credit provision.
The sum’s of cash on deposit in ireland are gigantic.
Who know s the total in tax havens etc.
The economy is by regular standards infrastructurally wise OK.
Also, the country is choc a bloc with info technology and gadgetry and inexpensive air travel and plentiful food supply with an ok social welfare net.
The cashflow problem itself is an illusion.
The cash flow slow down and emptying out from the real economy is NOT a direct consequence of the consumer holding cash and not spending as much and the banks holding credit and not providing lending as much, so, shrinkage in cash flow amounts and business turn over follows suit.
IT IS A CONSEQUENCE OF THE distribution percentages of the share of the cash amongst the population.
Too much cash is been held by too few people.
There are piles and piles and piles and piles of cash sitting waiting off to the side which should be made available by the gov too balance the books over purloining the 45 % in cash flow difficulty.
Let me extrapolate above comments further. You are getting into the nitty gritty of it.
The system is a dlce loaded in someone’s favour.
The system can work efficiently and fairly for every one but it isn’t.
So, we end up with debt peeonage class providing real labour too the owners of the system.
Thus, the wealth flows in one direction.
This is my point above.
Of course there are those who benefit from the ‘wealth transfer’ in one direction and that’s life.
But, it does not remove the fact the free market system has been rigged in the favour of a special interests over non – special interests.
There are those who may not consider themselves special interests but do benefit from been at the right end of the money / credit flow at any given moment in space and time, ( which i have been too, a number of times) but, the central fact is, the economy is rigged.
economy ebb and flow has been damned up and irrigated.
A command and control system allocates all wealth, hidden behind the facade of a supposed dynamic democratic market system of substantial freedoms.
which in of itself does operate dispersing wealth to whomever, but, behind which lies a command and control sub structure.
Like the movie “the sting”. It’s all moving walls and con’s and fake realities directing events to sucker suckers.
But Mr credit junkie businessman can get 7 machines on easy credit and arrive where I am in the market in a couple of months . So we are competing . But thing is he is driving down the price and if he fails he just walks away and everything is taken back by the banks .
This kind of business is history as it will be a long time before banks give credit to credit junkie businessman again . My business in Ireland ( although I am not involved in running it these days , my brothers are ) is thriving . My brothers tell me that they have no problem with the banks as we have assets that are worth something and the banks will get their money back .
As we return to a normal credit world where it is actually difficult to get a bank loan we are going to have high unemployment until this reality is faced up to .
if governance of the country had been run like the governance of my business, it would have been run prudently, frugally and fairly; it would not have run over a cliff. It would not have had the “top” people playing the peacock and swanning around, flashing the cash, while the employees suffer although delivering their productivity through their agreed work every day.
he labour party are part of the con that is the ‘left – right’ paradigm sold too the masses as political theatre, to preserve the black op’s mind trick over the populace, the ‘illusion’ that choice is on offer when, as we all know now to our misery, it is a crock of poo poo. We have no real choice.
people and corporations come to terms with limits. Limits to self-realisation and personal freedom. Limits to individual and corporate resource use and control of assets. Limits to debt burden.
It seems to me that the Lenighan government has finally painted itself into a corner and been forced to apply the logic of the ECB. Hence the trimming of the socio-economic ‘overhead’ that is the public service. To imagine the administration was given much choice is an illusion. Unfortunately following this logic does nothing more than stave off bankrupcy. In these post-FDI times a sustainable recovery will depend on the flowering of strong internationally-trading product and service enterprises. Investors need to accept that there are few sustainable quick bucks to be made in the new order that is beginning to emerge. The Irish need to refocus their energies on producing sausage rather than sizzle.
Leave our administration and the circus of self-interested satellite orgs to their preoccupations, delusions and deceptions. Try and minimise its intrusion into your life. Focus instead on getting good – building businesses and careers that are ethical and internationally competitive.
Wills proposition is that we have different rules for different people in relation to credit and debt servicing. While the Alan42s of this world will perform, there is a group of Alan42 competitors who have failed and are being let off the hook. These are the ones with PULL wink wink. I witness this all the time with developers who seem to walk away from debts with impunity and where a legal class are making money off creditors trying to get paid. It is rigged – no doubt about it….We have guys millions in debt still driving around in their4 be 4s while we evict those a few months behind on their rent or repayments. Alan42 better be careful…if they are not part of the club, their contracts may dry up. These IN clubs are all too good at muscling you out as the market contracts.
“economy ebb and flow has been damned up and irrigated.”
That’s a particularly nice analogy. Ireland does have something that more closely represents a consensus socialist command economy inside the castle walls, and almost complete anarchy moderated by debt obligations outside of those walls.
On the Irish economy blog yesterday (I think) Brian Lucey referred to the sound of the portcullis going down separating the insiders and outsiders.
Irish ‘economic rent infrastructure’, there was a call from one contributor (a Paul Hunt who has apparently looked into market distortions in the electricity and gas market) for economists to conduct a detailed analysis of other areas in this e.r.i.
So, in terms of stimulus, we are borrowing 22billion to keep the government spending at 55 billion. Government projections show that this spending level will be maintained, with adjustments to what it is spent on as more goes on interest payments and less on capital formation. Debt will increase from 64% and is projected to taper off at 84% in 2012. Well, lets see. Greece’s debt is over 100% now so I would not be surprised if we approach that. I would hope not.
The overriding aim of the budget was to get young people in the private sector go form a herd of lemmings again and get stuck into the property market. In fact everything from this government is about the property market. They still think that they can rebuild the euphoria. They are looking for something for nothing. The government, the union bosses, and the regime (the K-Club Clique) all want to have a recovery with no reform.
But this is not uniquely an FF problem. It affects most authority forms in Ireland. There is a belief that PR stunts are more successful than really addressing the core issues. And this comes from this belief that in a small country like this, the media can always be relied upon to take advice from ‘our advertising sponsors’ (including the state and big banks).
Basically there is a belief in Ireland that authority gives you imunity from ever having to be accountable in any way. Just engage in a PR campaign and the sheeple will come around to it. It is arrogance. And we need to to undermine this.
We don’t actually need a strike to paralyze the country any further. No we actually need to build the intellectual basis for reform in the public arena as much as possible.
The Irish Concept of Management has failed. And we need to say this repeatedly until it gets replaced with something much better !!!!
Exactly Deco, the budget is a beast of burden notification to the serfdom on who really is in charge.
It’s a device / vehicle too once a year for ‘unofficial oligopoly control’ ruling over Ireland, make it’s announcement on who call s the shots, who rules.
The money class rule all supreme.
The paymasters make policy.
And policy made yesterday bears no relation too anything except an ape pounding its chest asserting its dominance over the socio economic system they hijacked a long time ago.
Deco > there is a belief in Ireland that authority gives you imunity from ever having to be accountable in any way. we actually need to build the intellectual basis for reform in the public arena
I agree that authority by and large is authoritarian in nature to dictatorial levels. I’m not sure of the social reasoning for this, but perhaps studies have been done that show its a remnant from being a colony, sub-servants to a landlord system, plus more recently the strict religious-led schools.
I have often been on company managenent teams where consensus was reached by the CEO vote of 1 over-riding all other inputs and voices. You are aware of the concept of ‘building your own kingdom’.
On the corollary, I have watched with relish when a ‘hitler-type’ manager had his kingdom shatterred from above and was shafted. The shafters get shafted. Shafting is a common phrase in Irish business and organisational structures. And thats what FF have done to Ireland, they have shafted us. They care less about the consequences.
I expected a systemic collapse and that this would wake people up. Instead we got a series of PR stunts and makeshift solutions all built on the assumption that “the fundamentals are sound”. The dust then got swept under a different spot in the carpet. And there were a series of ‘confidence building measures’.
The biggest succes of the people who caused the mess was that the population did not upgrade the collective analysis. Instead we had repeated dumbing down like in the days of Ditherer.
Which is why we must continue analyzing what happens. And we must make sure that the money flows to those who compete fairly, who are open and transparent, and who tell the truth. I hope that more people educate themselves to who really controls Ireland.
Lets not forget these figures when dissecting the ‘budget’.
Anglo Irish Bank taken from taxpayers 4.0 billion euro’s
A.I.B / B o I taken from taxpayers 7.0 billion euro’s
E.B.S taken from taxpayers .4 billion euro’s
Nationwide taken from taxpayers 2.0 billion euro’s
Anglo Irish Bank taken from taxpayers 6 billion euro’s
A.I.B / B o I taken form the taxpayer 7.2 billion euro’s
NAMA taken from taxpayers overdraft facility at ECB 55 billion euro’s.
Now, what was BL saying the budget’s cut’s had to be done for ???????
Is the Irish Government sneakily standing in line waiting too declare a de – fault?
The next stage in the elites ‘passing of the buck’ scam circumventing the system correctifying itself according too market making functionality, the ruling elites and vested interests are sitting tight while passing all the private debts onto the governments balance sheet / taxpayers and awaiting for the governments inevitable declaring of a sovereign de fault readying themselves for the next move on the back of such an event.
Wills, for us in Ireland there are three external slow moving problems emerging.
1) The UK has every intention of printing money until the British banks are solvent again. Brown is more concerned about the superficial than the real legacy. If £1UK to €0.90 is tough, wait until it hits £1.20UK to €1.
2) The US will have to print dollars to keep intself afloat – and this will mean a falling dollar. Which is deflationary for everybody exporting to the US. It also means that these mega-stimulus plans will run out of impact. US interest rates will be forced up.
3) Our continued membership of the PIGS will be of more relevance than our membership of the EU. Basically the PIGS are too fat, and need to go on slim fast. As you can see we are in serious trouble. If you read down you will see that two PIGS in particular are in serious delusion and borrowing hand over fist.
Also, if its the case this carry trade is the final roll of the financial instrument dice, the other side of it will be sovereign debt de – default perhaps and crash of fiat money system perhaps so canned food and ocala blue water system and items for bartering on hand and multiplicity of skills and so on is in the offing.
On the ‘black economy’ myers point. The ruling powers created a black economy, the blackest of which remains bailing out banks in the back rooms.
Also, the ruling elites facilitate a zero out on icome tax below 18,000 euro cos it keeps the masses less rebellious and just about sweetened on minimal comfort and so averse on revolt.
On the ireland brit link all one has to do is investigate ANIB links too AIG in the city of london and one will discover the vested interests who control and rule Ireland behind the fake left right political paradigm
MONEY SUCKING ANGLO OUR FINANCIAL STALINGRAD: DMcW (March 3 2010)
There’s always been a freak clique in charge, running the show for their own ends, their own rewards, using the foundational errors of the State to generate misplaced loyalty amonst the serf classes.
Banks sell debt as credit to the serf / feudal landlord class. They then re-sell it to the ‘international trash pension fund speculator class’ such as PIMCO and the Rating Agencies. Then it blows up. Who carry’s the can? The serf taxpayer.
Predatory parasitic ‘Private Capital’ has been ‘gaming the State’ for centuries. No more nonsense. No more ‘financial panics’. You were all bailed out by Joe(sephine) Soap. Take your losses on the chin, pay back your own debts before you start lecturing about the ‘unsustainable public debt’ raised to rescue your mathematically challenged Casino.
Predatory parasitic ‘Private Capital’ has been ‘gaming the State’ for centuries.
Not entirely true. Lenders are making money off Ireland due to our increased risky credit worthiness, and our bps spread. Lenders will be quids in with 5 year money, presuming of course that the euro still exists, which it should.
You may not get any joy out of a “demise” of a country or a business when it is in a downward spiral, but you can short sell and get extra on their ‘junk’ bonds.
On Irish Banking,
This is the excellent foppery of the world, that, when we are sick in fortune, often the surfeit of our own behaviour, we make guilty of our disasters the sun, the moon, and the stars; as if we were villains by necessity, fools by heavenly compulsion, knaves, thieves, and treachers by spherical predominance, drunkards, liars, and adulterers by an enforced obedience of planetary influence; and all that we are evil in, by a divine thrusting on: an admirable evasion of whore-master man, to lay his goatish disposition to the charge of a star! …………
You’ve nailed it. Fear. We cannot overestimate the power it is having on the population. Logic does not come into it. It is a ‘fear’ and its common partner ‘ego’ that has Ireland in this mess.
David said :
“The financial markets would shrug and move on if we did so. What most people fail to understand is that financial markets are forward-looking. Tomorrow’s prospects, not yesterday’s mistakes, are what drive investors. Markets are not in the business of punishing countries. There is no money in punishment. They want Ireland to grow, so that they can make money.”
This is what anyone who has dabbled in the markets for any amount of time will say. “Your win is someone elses loss”, “Every loss is a learning experience”. Some will avoid a previous investment because they got burned but most will learn from their mistake and use the knowledge to become a better investor. The Irish government’s approach is the approach of a newbie investor, one who never really took a loss and never had to take any pain. It’s understandable but for every loser there are ten more who learned from it and look for opportunities at these times.
Stalingrad is a good analogy. Stubbornly refusing to take a loss leading down the path to doom. Contrary to what some think; the market will respect Ireland if it faces reality and does the right thing. Most investors steer clear of investing where they see this Stalingrad mentality.
But the government is using to fear to push through its agenda. Maybe we could set up a website FAQ where each and every statement the government uses pro NAMA is dissected for cons. The Irish people will not be able to make a rational decision until we stop them dealing in fear and start dealing with fact.
STATE-OWNED Anglo Irish Bank has continued to bankroll members of the
infamous Anglo ‘Golden Circle’ since it was nationalised.Incredibly, in one case it gave a loan to a Golden Circle group at the
same time as it was writing off e300m it had previously loaned them.On May 29, the bank said e308m of the e451m would probably not be paid
back. Yet on the same day, Joe O’Reilly, one of the circle, and his
firm, Castlethorn Construction, got a loan for a unit in The Waxworks,
Ashtown Square, Dublin.
In fact, Mr O’Reilly has taken six new loans since nationalisation –
three signed off in May.
On January 27, just after the Anglo bailout, the bank gave him
multiple mortgages for a e1.25bn plan for a 5.3acre site in Upper
O’Connell Street. The ‘Park in the Sky’ plan by his Chartered Land
firm has now stalled due to planning difficulties.
On January 16, Mr O’Reilly got two mortgages, one for an Upper
O’Connell Street premises, another for the ground below the footpath
at 40, 41 and 42 O’Connell Street. He got loans for properties in
Sandyford and Castleknock.
Malahide auctioneer Brian O’Farrell got a loan from Anglo in March for
his Golden Circle firm, N1 Property. Weeks later, its e1.2bn overhaul
of Dublin’s Northside Shopping Centre got the nod.ONLY in the crazy world that is Namaland could Anglo Irish Bank be
lending more money to the very people who just last year engaged in an
outrageous attempt to prop up the bank’s share price using money
borrowed from… Anglo Irish Bank. What is even more extraordinary is
that the extra money is being loaned just as past loans are being
written off as unrecoverable! On one level, this could be written off
as a hilarious banking story penned, perhaps, by Lewis Carroll (or
Liam Carroll, who is insolvent but also being offered yet more cash by
Anglo). But this is not joke. What these revelations expose again is
the immorality of the Nama plans, in that the people who lost all our
money get even more to play with.That, rather than any great preference for other schemes, is why the
public is so opposed to Nama: they do not accept that reckless
behaviour should be rewarded in this way. They think misdeeds should
be punished, not rewarded. As Abraham Lincoln said: ‘What is morally
wrong can never be politically right.’
That is just one dimension. Another dimension is the potential for speculators to move their profits to different companies once they were made, and thereby have millions aside for themselves in the event of a crash. I am very suspicious about this having happened. It is the type of crooked scam that is well possible in Irish business and professional circles.
It goes along with the theory…..we see a hole (of debt)….but where is the clay ? (money that was made). It could not have all disappeared. MAssive fortunes were made over a period of twenty years, starting with land purchased as agricultural and then rezoned as residential. At one stage twelve magnates controlled the supply of building land in Dublin. Nobody else could get land rezoned.
Yep. I am more getting at the pensions revamp in terms of its psychological effect across a broadside of the populace and a subsequent gameplay on the minds of the sheeple in relation to ‘the confidence’ variable in relation to the paper money scam and how the pensions revamp, NAMA, and maintaing ANIB ‘like it or lump it in yer face contempt, all variables seem to be some type of hidden shock treatment afoot.
The private investors are AIB & BOI among others.
So the banks have recklessly loaned out money willy nilly, then loaned out more money on the back of that. This brings down the economy, the banks get a bail-out, the distressed assets are put out of harms way into NAMA but the banks still get to profit from the whole plan, without sharing any risk?
Moral Hazard my arse.
We are being told one thing, but I too find it hard to believe that these guys are in trouble. They get to offload their liabilities and no doubt they have money squirrled away. I have only one question: Where has all the money gone?
I am sure if you turn up in Zurich with a large deposit the banks would make you a lovely cup of coffee while they process your account details.
Of course, we have to come back to the barbers and their haircuts, economic models and their creators that have managed to turn mathematician games into a mater of faith and make a free market paradigm turn into a belief system.
Fiscal and monetary predictions are run in such mathematical models, and they are used to suggest prescribe policies.
GIMF is exactly such as system, the IMF’s Global Integrated Monetary and Fiscal model is a dynamic stochastic general equilibrium model.
Do you start feeling like a lab rat as well?
If I am not mistaken, this is the holy grail of those who serve the gods of economical models to predict the future.
The modern computer age notion is that models become better, of course, they must become better because we have more Tera flops at our disposal.
True? – Or just another matter of inherent religiously motivated faith in a system that shapes the future of generations?
Models are nothing but attempts, some better some worse, to use existing data of the past to predict on outcome in the future. The modern crystal ball version.
Of course, a fool who thinks that the handful of people who own the vast majority of cash on this planet would have an influence on policies that are suggested by Dominique Strauss Kahn.
The money is going somewhere and all the ‘controlling interests’ are concerned with in their money press dennis the menace print roll is to avoid any debasing of the euro to preserve its purchasing power going forward into the unfolding next financial POnzi scam.
Also, i think the ‘preserving currency purchasing power’ modus operandii of the controlling interests is utterly keyed in with global trade and hidden empire global market reach and control.
Whats fascinates me ruairi is the euro and its use here in Ireland and the tie to ECB puts Ireland right in the middle of the world stage in terms of global elites vying for market share and future market earnings in relation to hidden empire dynamics.
Ireland on the fringe for decades is now absorbed into the real politic of empire global market control etc the side Ireland is on been europe and anglo – america.
NAMA must be seen in terms of all of this. As we know NAMA would not be possible only for the ECB so NAMA really can only be understood in its objective reality from the perspective of ECB agendas.
If we pour money into the banks, private concentrations of power will make decisions to their own benefit and interests.
Unfortunately, corruption of power, croneyism, vested interests in Ireland have us in this morass. Bankers in league with politicians in a private oligarchy fiefdom at the public’s expense.
Isn’t it a true irony, that would only be feasible in an upside down economy such as ours, built on FF and Anglo bubbles, that Mr Lenihan, a puppet stooge of this vested elite is feted as a brilliant saviour of our economy?
It is one of the gamblng platform that need to be terminated. Dark pool trading refers to crossing off exchange liquidity. Bigger sell side firms facilitate this since ages. It is a pre-trade state, hence invisible to the public. So they act in anonymous avoiding the stock exchange.
They are used by institutional traders executing massive amounts of stock, avoiding the market to go against them.
As soon as any information leaks, the gaming starts.
Goldmann Sachs is famous for dark pool trading. SEC is trying to get a handle on it.
The whole system is fucked, but what would I know. …LOL
So, should economists be actively advancing reform of the process of public policy design and implementation to ensure full use of economic theory and practice or should they remain as “hurlers on the ditch” – waiting to be called into play by government?”
Ireland is indeed run by insiders and for insiders. Its the same in all western countries. But we’re an idiotic and docile crowd who just take. Elaine Byrne had an excellent article in the irish times last week where she discussed lack of power in the dail. She referenced quotes form Eoin McNeill made in the early 1920’s. He said that as we had been under english control for so long that people saw politics as been detached form their lives. That people just viewed politicians as another class and felt they simply had no power. This all sounds familiar. Incidentally, Eoin McNeill was Micheal McDowells grandfather. Its all very well all us blog freak meeting up on this site agreeing with each other about how bad things are and how the system is set up against us. But do we feel we have the power to do anything about it, well obviously not.
Back to Davids point about Seanie Fitz not acting alone. This is very true. i worked in this business for many years. I now realise that my conscience got the better of me, and I got out in time. But here’s a sample of how a standard site would have worked.
A farmer gets a call from a auctioneer/developer. He’s told that if he goes along with what he’s told he’ll be a rich man. The auctioneer then makes a material change to development plan to the local authority. He talks to a councilor. the councilor then legally gets the zoning changed and the site is now revalued at high density residential. The land makes it to the market. The auctioneer then ropes in three developers and plays them all off. Then one eventually gets the land. By this time an army of valuers, engineers, planning consultants and architects have been paid very well. Then the builder has to get the money. This cant be done unless the other sites have been revalued and cross charged. This takes the efforts of several valuers and solicitors. Then seanie fitz comes in and lends the money. If the builder went through a broker then he has hassled harranged and bullied the broker to get him the money. His life will never be the same unless he gets it. Never let a builder tell you they were sold a lie by the papers, these guys wanted this and fought to the end for it. Then anglo lend the money and the game starts again. Through a deal like this its usually the same individuals that have been paid. the accountants have signed of on the fake statement of affairs and given in the accounts and tax clearance. then they get paid. My point been is that a lot of people have made money before seanie fitz comes in. He also makes money. Anglo were never cheap. But it was all pretend money anyway. The developer rarely put his hand in his pocket. Al the costs were rolled up anyway. Anglo charged more, but what the hell, they were giving the money. If a developer knew that he’d get the money to enable him to make 10 million he didn’t really mind paying Anglo 500k more that the other banks. It was first time buyers that were paying it not him.
Then one of the best scams in town came into play. Think of all the times you heard recent house buyers saying, “Since I bought my house it’s gone up so much, the second phase is already 20K more that what I paid”. Let me translate this. The bank always included the condition of a certain level of pre-sales. So the auctioneer would be keen to get the sale of the whole estate. So he “sold” contracts to his friends and also himself. The contracts were always in phase two. Once the contracts were signed Seanie gave them the money to get going, Then there was no risk for the bank, because if it all fell apart the pre-sales would pay for the site. Phase one is built and sold and then the auctioneer released phase 2, jacked up the price on the pre sales and he and his buddies made a handy 20k. This was facilitated by the law society as the sale was never really closed so they got out of stamp and everybody was happy. The margin of profit was huge for everybody and everybody made money. The builders usually hated the bankers and always felt they were been looked down on by the boys in nice louis copeland suits and the bankers hated these red neck up starts who had the balls to go for it and make more that they were making in their safe bank jobs. It took a lot of people to make all this happen. Not just seanie fitz. I knew a lot of seanie types. They all had a type A personality and a victim complex. They all had their own narrative and life story well rehearsed. The only thing that mattered to these people was their ego and legacy and the image of success. Its unlikely that he will do time, but everything that matters to him is now gone. All these people had huge personalities and were loved in the communities. People were proud to know some inside story on them. Now its all turned to shit. I knew of one builder that was drinking coffee and as he looked out the window he saw his Bentley been taken away. He then had a nervous breakdown. Once the money is taken away from these people then they realize who they really are. Thats not always something they can deal with.
“The maze of interchanges in a small country between sectoral vested interests – political and executive, social, environmental and economic – is informing our ideological and electoral positions. The state is seen as an (at least occasionally) benevolent defender of the interest to which one is aligned. The stronger state, therefore, is just that, a stronger defender. From the intellectual laziness of our academics, to the nearly unadulterated parochialism of our regulatory and legislative interests, to our clan-based politics, the ills of our society are traceable to the historically conditioned inability of Irish society to accept the basic tenet of liberty. We have never learnt that any vested interest, no matter how small, must be treated at a political level as a monopoly-seeking cartel. This, of course, coupled with the recognition that the state itself is a collection of those vested interests, means that the pursuit of liberty for all, requires a coherent limit on the State. The power and financial privileges that have accrued to nearly all of us, as vested interests, have prevented us seeing that.”
Which I take to be saying that the state is skewed in favour of the vested interests (which we nearly all are to some degree) and against the hypothetical citizen per se. Now I wouldn’t see the stuff about liberty being important but rather (following Crotty) the historically determined inequitable conditions of property ownership.
Well, whatever about all that, it is increaingly clear to everybody that it is a political problem. The difficulty is: how can the state be used to try to solve it if its raison d’etre is to protect the vested interests it should be challenging?