- The financial quakes are sounding off. Greece and Ireland will default sooner or later. Do not for one moment think that Illuminist banks (ECB and IMF) are there to help the Irish and Greeks. How does lending money at exorbitant interest rates help Greece and Ireland? And they call this a bailout? What bailout? There is no bailout. This is just loan sharks (IMF & ECB) smelling blood and going in for the kill ! These are privately owned Illuminist organizations. They are there to force a fire sale of national assets/treasures into Illuminist hands.
Ireland Snubs ECB Effort to Avoid Meltdown With Threat to Bank Bondholders!
By Jana Randow and Simon Kennedy, http://www.bloomberg.com/
Ireland opened a new front in the drive to restructure debt on the euro area’s periphery, adding to the European Central Bank’s concerns as it tries to head off another wave of financial turmoil.
Irish Finance Minister Michael Noonan said yesterday that senior bondholders should share in the losses of Anglo Irish Bank Corp. and Irish Nationwide Building Society, reversing a policy of protecting owners of senior securities. The ECB is against imposing losses on investors. President Jean-Claude Trichet said on Feb. 7 that haircuts aren’t part of a plan to reduce Ireland’s debt load.
Ireland’s about-face on bondholder involvement in its banking crisis comes as European lawmakers struggle to settle a dispute over how to avoid a Greek sovereign default. While German Finance Minister Wolfgang Schaeuble said last week that Europe’s biggest economy insists on the participation of the private sector, his French counterpart Christine Lagarde has ruled out any action that constitutes a “credit event,”backing the ECB’s view.
“Noonan must be kidding,” said Klaus Baader, an economist at Societe Generale in London. “It’s not so much money-saving as a way of Ireland trying to improve its bailout terms, just as the Eurogroup is focused on Greece. Naturally, it means investor stress and increases pressures on bank funding. The ECB won’t take this particularly seriously, but the annoyance factor is extremely high.”
“Greece could have a contagion effect,” ECB Vice President Vitor Constancio said yesterday. “That’s the reason why we are against any sort of default with haircuts and any form of private-sector event that could lead to a credit eventor a rating event.”
The euro fell to $1.4074 in New York, the weakest level since May 26, before paring its decline. The cost of protecting European corporate bonds soared to the highest level since January and credit default swaps anticipated an 81.5 percent chance that Greece won’t pay its debts. The cost of insuring against default on Irish and Portuguese government debt also surged to records.
“Given the amount of pressure the ECB is under on Greece and its hardening position against any private-sector involvement, I don’t think they’ll be changing their position on Ireland at this stage,” said Giada Giani, an economist at Citigroup Inc. in London.