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Newspaper Has Tape Of Irish Banksters Joking About Fooling Central Bank To Bailing Them Out
by Monica Davis
I just started with a quick note, but this mess is too good just to dash a note and leave it. Just when I think I’ve seen enough banksterism–new form of government, don’t ya know, another crook pushes the envelope and blows my mind.
Crime was rampant through out the bail out process. Bankers lied, government regulators not only accepted the lies, but gave the banksters money based on lies. Get this: one source says the government used lies AS A FORM OF MONETARY AID!
A key feature of the bailout: the government’s decision to use lies as a form of monetary aid. State hands over taxpayer money to functionally insolvent bank; state gives regulatory thumbs up to said bank; bank uses that thumbs up to sell stock; bank pays cash back to state. What’s critical here is not that investors actually buy the Fed’s bullshit accounting – all they have to do is believe the government will backstop Regions [bank, as one example] either way, healthy or not. “Clearly, the Fed wanted it to attract new investors,” observed Bloomberg, “and those who put fresh capital into Regions this week believe the government won’t let it die.”
Through behavior like this, the government has turned the entire financial system into a kind of vast confidence game – a Ponzi-like scam in which the value of just about everything in the system is inflated because of the widespread belief that the government will step in to prevent losses. [Exactly.] Clearly, a government that’s already in debt over its eyes for the next million years does not have enough capital on hand to rescue every Citigroup or Regions Bank in the land should they all go bust tomorrow. But the market is behaving as if Daddy will step in to once again pay the rent the next time any or all of these kids sets the couch on fire and skips out on his security deposit. Just like an actual Ponzi scheme, it works only as long as they don’t have to make good on all the promises they’ve made. They’re building an economy based not on real accounting and real numbers, but onbelief. MOREHERE
And, if that wasn’t enough, the banksters lied and laughed all the while using government bail out funds–to fund their excessive lifestyles instead of bailing out their own banks.
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Anglo Irish Bank Executives Joked About Billion Euro Bail Out Scam by Pratap Chatterjee, CorpWatch Blog |
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Executives at one of Ireland’s biggestbanks laughed and joked about how they were going to fool the Central Bank into bailing them out, according to a tape recording obtained by the Irish Independent. The failure of AngloIrish Bank is eventually expected to cost the taxpayer €30 billion. “If they (Central Bank) saw the enormity of it up front, they might decide they have a choice. You know what I mean?” John Bowe, a senior negotiator for the bank is heard telling his colleague, Peter Fitzgerald in late September 2008. “They might say the cost to the taxpayer is too high . . . if it doesn’t look too big at the outset . . . if it looks big, big enough to be important, but not too big that it kind of spoils everything, then, then I think you have a chance. So I think it can creep up.” Anglo Irish Bank, a local property finance bank, was founded in 1964 and gained a reputation for lending quickly for risky projects at a higher rate of interest. As one of the younger banks, it took a long time to expand, but when Ireland joined the euro in 1999, Anglo did a roaring trade as investors flocked to the country eager to set up offices to take advantage of the low tax rates. morehere |
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