FedUpUSA

Last night, of course, this was presented as “all done” and “all good.”

Well, maybe not.

DUBLIN – The Green Party in Ireland’s shaky government has threatened to withdraw from the coalition unless Prime Minister Brian Cowen agrees to hold an early national election in January.

Green Party leader John Gormley says he wants the government to forge a four-year austerity plan and pass an emergency 2011 budget next month, then dissolve parliament early in the new year so that Ireland’s shellshocked voters can pick a new government with a strong majority.

Oh, and that’s not all…..

Irish Finance Minister Brian Lenihan needs to inject at least 5 billion euros ($6.8 billion) more cash into the country’s two biggest lenders immediately as part of Ireland’s international rescue, analysts said.

But I thought that the bailout was contingent and didn’t represent any immediate need?  That everything was ok now, and that there was no actual need for an immediate injection of capital?

And why is it, may I ask, that we are once again bailing out private banking interests with government money?  Isn’t the real reason that if they don’t German – and banks in other nations – will suffer losses?

So we now have, once again, taxpayers bailing out foreign banking interests.

How long will the people of the world stand for this? 

Why do we stand for this?

We now know that in the United States this mess occurred due to fraud.  Citibank’s former Chief Underwriter, I will continue to remind you, testified under oath that by 2007 the bank knew that 80% of the mortgages his business unit was writing were trash.

That’s not an accident, it’s not “unforeseeable circumstances”, it’s not “nobody could have seen this coming.”

Not only did they see it coming they actively participated in doing it and it was an intentional act that continued right up until the banking system basically collapsed.

These people – all of them – need to go to prison – no matter where they are. 

These “bailouts” are nothing more than Racketeering and organized Financial Rape, and we are now more than three years into this crap, with the governments of the world all complicit in literally stealing the citizens’ money to pay for the theft that was originally perpetrated on those very same citizens!

Ireland: Bailout Down The Drain?

U.S. taxpayers finance approximately 20% of the IMF’s budget, so this is now the 2nd European member state to require your assistance to survive.  Greece and Ireland now bailed out, the bond market’s focus will turn to the next 2 weakest links – Spain and Portugal.

From the AP

DUBLIN – Ireland on Sunday became the second European nation to ask for a multibillion euro rescue loan to help stabilize its debt-ridden banks and Europe’s finance ministers scrambled to talk about ways to relieve the country’s debt crisis.

Other eurozone countries and the European Central Bank had pushed Dublin to accept help after anxiety over Ireland’s massive bank-bailout bill threatened to spill over to the currency area’s other shaky economies, including Portugal and Spain.

The request for help from the EU and the International Monetary Fund is a humiliating turnaround for the Irish government, which only days ago had denied that such a package was being negotiated or was even necessary.

It also dashes the hopes of other members of the 16-country currency union that the mere existence of a euro750 billion ($1025.55 billion) financial backstop set up in May would suffice to quell concern over several nations’ massive debt levels.

Ireland’s Finance Minister Brian Lenihan refused to give a precise figure on the fund, saying only that it would reach tens of billions of euros. He denied the figure would top euro100 billion ($136.7 billion), as some had speculated.

“I will be recommending to the government that we should apply for this program,” a somber Lenihan told Irish state broadcaster RTE. The Irish cabinet is expected to sign off on the request later Sunday.

Experts from the EU, the ECB and the IMF in recent days have been digging through the books of Ireland’s biggest banks to find out whether the government would have to pump in more than the euro50 billion it has already budgeted for the bailout.

Ireland is running a deficit of euro19 billion ($26 billion), which Lenihan said could not be financed at current market rates. Lenihan said the money would help Ireland pay its bills and provide a contingency fund to back up the banks, which have been hemorrhaging cash since the country’s real estate boom crashed in 2008.

The interest rate on Ireland’s 10-year bonds surged to above 8 percent in recent weeks, after the government again had to revise up the final cost of the bank bailout and economists raised doubts that the Irish economy could grow fast enough to pay off the debt.

“Clearly we want to borrow for much less than that,” Lenihan said Sunday.

Although the government has insisted that it has enough cash on hand until the middle of 2011, analysts are concerned that the discovery of further holes in the banks’ balance sheet could suddenly drive up costs.

Market jitters had also begun to spread, raising borrowing costs for Ireland and Spain and weighing on the value of the euro.

After the Irish cabinet has approved the loan application, Irish, EU and IMF officials will negotiate the details of the bailout. The first portion of the loan might come from the European Commission, the EU’s executive; after that the IMF and a facility funded by eurozone nations would raise money in the international debt markets. The European Commission declined to comment on Ireland’s request Sunday. The European Financial Stability Facility wasn’t immediately available for comment.

The Irish rescue is the latest act in Europe’s yearlong drama to prevent mounting debts and deficits from overwhelming the weakest members of the 16-nation eurozone.  Greece was saved from bankruptcy in May, and analysts say Portugal, which some argue has done less than the Irish to bring debt and deficits back under control, could be next.

Reflecting the national mood, the Sunday Independent newspaper displayed the photos of Ireland’s 15 Cabinet ministers on its front page, expressed hope that the IMF would order the Irish political class to take huge cuts in positions, pay and benefits — and called for Fianna Fail’s destruction at the next election.

“Slaughter them after Christmas,” the Sunday Independent’s lead editorial urged.

Clarke and Dawes Ask The Million Dollar Question

—

Jimmy Rogers explains how the situation should have been handled…

More detail on this clip is here:

• Jim Rogers: “Punish The Irish Banks & Their Reckless Bondholders, Let Ireland Go Bankrupt!”

Even better, Rogers never mucks around with airtime.  This is a solid 2 minutes of pain for bank-bullshitting fear mongers on both sides of the Pond.

The Daily Bail

Gee, you think someone would eventually tell the truth…..

“I will be proposing to my colleagues that they should formally apply for a program,” Lenihan said in an interview with state broadcaster RTE in Dublin. “The banks were too big a problem for the country. The key issue all the time for the government is to ensure that we do not have a collapse of the banking sector.”

Why not just blow ‘em up?  Tell the banks to stuff it and let them collapse.

Then set up new banks with sovereign credit.  New banks with clean balance sheets.

Oh yeah, and while you’re at it, arrest the heads of said banks and put them on trial for corruption and looting, and upon conviction, give them this:

That’s what should happen.  And it’s what the Irish People should demand happen – by whatever means are necessary.

The cost of saving Ireland’s banks threatens a rerun of the Greek debt crisis that destabilized the euro region earlier this year. Lenders are reeling from the collapse of the property market in 2008, which resulted in the biggest contraction of any EU nation. An unprecedented budget deficit — equaling one-third of economic output this year — sent bond yields to all-time highs.

Looting becomes impossible to sustain eventually.  Now the Irish Government thinks that the Irish people should pay for being robbed!

It’s not enough to get ripped off – now the government wants to tax the people to pay for the stealing that they allowed to happen in the first place.

This is no different than what happened in Greece or the United States for that matter, and it will continue to happen until the people stand up and refuse to accept it.

Further, and far more importantly, shifting the bad debt around doesn’t get rid of it.  It simply tries to impose the cost on the nation as a tax – a tax that cannot be paid, and won’t be paid.

To the Irish people: You must choose between putting a stop to this – no matter what it takes to enforce that demand – and literal debt peonage and servitude imposed upon you for the sins of a handful of rich bastards that robbed all of you.

The Greeks failed to rise and stop it.

Now it’s your turn.

The problem with refusing to rise is that doing so will not in fact provide a fix.  You will simply sink further into the mud and ultimately will detonate the European Union.

Down the road of ”accepting” these acts by your government lies an inevitable armed conflict of some sort.

I’ve been on this specific point for more than a year.  Why?  Because I have had multiple people assert to me who were in a position to factually know that this took place.

It also was the only way for certain “problems” (like writing crap paper) to remain undisclosed to auditors and investors.

Now we have it on the record, in a lawsuit.

Linda DeMartini, a supervisor and operational team leader in B of A’s litigation management department, testified that “the original note never left the possession of Countrywide”… DeMartini “testified further that it was customary for Countrywide to maintain possession of the original note and related loan documents”…

There’s no cure for this at this point in time.  The following problems are insurmountable:

• Most if not all of the MBS trusts are organized under NY Trust Law.  NY Trust Law requires that delivery be made “in as perfect a form as possible.”   Intentionally not delivering anything is so far removed from this requirement that it is a near-certainty that the Trusts are in fact legally void.
• IRS REMIC rules require that the trusts contain a static pool of loans, and that they all be in the trust as of the certification date.  This is typically 90 days post-closing of the trust (the 90 days is to allow a few late deliveries.)  If REMIC rules are not followed the entire trust loses its tax passthrough preference and back taxes are due on the operations of the trust back to the point of violation – in this case, back to the founding.  The holders of the certificates could become held financially responsible for these taxes – at the corporate rate.
• The Pooling and Servicing Agreements all contain certifications that the formalities of transfer were complied with, including all intervening assignments and delivery to the Trust.  These are not certifications of something to be done prospectively, they are certifications of fact that have allegedly occurred. If in fact no transfers took place then the entire MBS chain is arguably void as there are no mortgages in the securities.  This would constitute the largest fraud ever perpetrated upon investors in the history of the world.
• And now, to top it off, we have in formal testimony an admission by Bank of America’s litigation management department, that they have concealed this fact from the public markets.  Where is the notification required of a “material adverse event” in the firm’s 8Ks, 10K or 10Qs on this matter?  This sort of knowledge certainly has the potential to be “material” (in that the liability would exceed the Bank’s capitalization several times over) and yet we first learn of this in a conclusive fashion in a lawsuit?

Mr. President and Sheila Bair:  TAKE THESE BANKS, PARTICULARLY BANK OF AMERICA, INTO RECEIVERSHIP NOW.

This outcome cannot be avoided.  We must do this in a form and fashion that is controlled, which means you must do it now, before the vultures get their teeth into these issues.  There is no way to retroactively fix this – we’re talking about trillions of dollars here, more than you can print and play with, and there are international concerns that own these MBS as well.

The rule of law must be upheld.