the best way to solve a problem with run-away debt from stupid market maneouvres
is to take out more debt.
The Euro boys at the ECB have seen Ireland's banks use toxic financial tools
used to take out massive leverage, causing all of Ireland's banks to fail.
So what does the ECB do? it takes out more toxic financial instruments,
baptises them as 'good loans',
even though they're backed by other 15 Euro countries like Portugal
and Spain, but not Greece,
and gives the loans to idiots in the Irish gov, for them to give to their banks.
So, it's more new market bullcrap to cover up for old market bullcrap, so thateven though they're backed by other 15 Euro countries like Portugal
and Spain, but not Greece,
and gives the loans to idiots in the Irish gov, for them to give to their banks.
the big Euro banks in Germany and Holland don't lose a penny of their investment.
what a tangled web we weave. Not me, and not you, those banking f%^&kers who are
enslaving us through their own stupidity and malfeasance.
Now, it's a game of 10 little Indians.
When Portugal gets a loan, it will be paid for by loans and toxic instruments from 14 countries [15, minus itself], and so on...
-Costick67 ~(8^P
checkitout:
What Will Happen When Ireland’s Guarantors Need a Bailout?
Author: Conor McCabe of Dublin Opinion
Published: March 24th, 2011
Author: Conor McCabe of Dublin Opinion
Published: March 24th, 2011
It is often said that a definition of insanity is to do the same action over and over again, each time expecting a different result. In that case, the European Financial Stability Facility (EFSF), Ireland’s single-largest creditor, is a 21st century Bedlam.
Originally set up as a temporary measure, the EFSF was created in June 2010 in order to preserve the financial stability of the euro area by providing financial assistance to member states who found themselves in difficulty. It does this by selling bonds, and from the money raised it provides funds (with interest) to the financially-distressed states.
The EFSF takes bad loans, and by putting them together, turns them into good loans. It uses a financial instrument similar to that used by institutions in the run-up to the 2008 financial meltdown - whereby subprime mortgages were bundled together with other loans and sold as one good loan. These instruments are known as collateralised debt obligations.
In February 2011 the Financial Times explained that, technically, the EFSF is not a collateralised debt special purpose vehicle obligation
[oh, I see the difference xD- Costick67]
but a pool that essentially guarantees and loans from stronger euro members to give it a top triple A credit rating.’ The difference, however, is in definition, not in usage.
The economist Nouriel Roubini wrote in January 2011 that the EFSF was an instrument whereby ‘you take a bunch of dodgy less than AAA sovereigns (& some semi-insolvent) and try to package a vehicle that gets [an] AAA rating’. And it is this process of bundling bad debt into bonds which are guaranteed by good lenders which makes it akin to the ‘financial weapons of mass destruction’ which almost brought down the US and European banking systems.
The loans are still bad, the sovereign states are still distressed - it is only the guarantee that has changed. The bonds are valued not so much on the loans themselves, but on the guarantee which comes with them.
The risk has not gone away. It has merely shifted from one place to another, from bad lenders onto good.
The reasons why the sovereign states find themselves distressed in the first place are not addressed in any shape or form.
