"Irish bailout estimate too low, tests may show" by Shawn Pogatchnik, Associated Press / March 31, 2011
DUBLIN — Ireland is publishing stress tests on its four surviving banks today — and analysts expect the results to force all of them to come under majority state control and perhaps even shove the country into an eventual default.
Regulators are revealing numbers on two banks that are already majority state-owned — Allied Irish Banks and the Educational Building Society — and two others expected to join that club soon: the Bank of Ireland and Irish Life & Permanent.
The results are widely expected to show that last year’s estimated potential losses for Irish banks — $76 billion — were far too low. Economists said the new total would likely approach $110 billion or more, about half of Ireland’s entire economy.
“The government is trying to remove uncertainty. But if we are going to spend up to 80 billion to recapitalize our banks, that’s just too big for us to manage. It will not work,’’ said Jim Power, chief economist at Friends First, a Dutch-owned insurance company in Ireland. “We need a major European initiative quickly, otherwise the future of the euro is under serious threat.’’
Ireland plunged into a financial morass after its six banks spent a decade gorging themselves on real estate loans that started going sour in 2008. Ireland’s government tried to discourage investors from fleeing Ireland’s six banks by issuing a blanket guarantee that instead has left taxpayers on the hook for all their losses.
That's why the voters voted for change.
Related: Fianna Fail Failed Ireland
Not much of a change, huh?
Last year, as Ireland found itself unable to fund a deficit ballooning because of the bank bailout bill, the nation was forced to negotiate a $95 billion bailout credit line from the European Union and the International Monetary Fund.
At the time, that loan was designed to cope with Ireland’s cash needs through 2014. But if the bank rescue costs soar as expected, analysts warn the loans won’t be enough.
Ireland’s weak growth prospects are already making it hard to see any solution that doesn’t involve eventual default. The new government led by Prime Minister Enda Kenny has warned that foreign bondholders in Irish banks may have to start sharing the losses....
What, what, what?!!??!!!!
But if Ireland went down this route, it would require EU support because of its membership in the 17-nation eurozone — and would send shockwaves through financial systems worldwide.
I now see why the Irish didn't want to join the thing and why they had it rammed down there throat via threats, blackmail, and extortion.
The biggest holders of Irish bank bonds are British, German, and US banks, which until now have suffered virtually no losses from Irish debt restructuring.
Yes, the FIRST THING GOVERNMENTS DO when designing budgets is HOW MUCH do we have to pay for DEBT SERVICE INTEREST to the BANKS?
That chunk of money ALWAYS SEEMS to get SET ASIDE FIRST!
Cut the schools, cut the cops, cut health care, cut infrastructure, but you better make damn sure you make those interest payments that produce absolutely nothing except bulging pockets for banksters!!
Related: Blago Beats Crack Government Prosecutor
See what happens when you flip the finger to banks?
Over the past year, foreign banks stopped loaning entirely to Irish banks, and the government also withdrew from the bond market in September citing punitive interest rates. Two months later, Ireland negotiated the bailout from EU and IMF donors.
Sort of a cause and effect there, right?
--more--"
Time for a false-flag distraction:
"Car bomb kills police officer
DUBLIN — A 25-year-old Catholic who had just joined Northern Ireland’s police force died yesterday when a booby-trap bomb exploded as he got into his car in Omagh, police said. No group claimed responsibility, but police and politicians blamed Irish Republican Army dissidents for the bombing."
Then they are probably the last ones that would do it.
See: Irish Are No Fools
Neither are we, readers. Not anymore.
Cui bono?
