Classic post on p.ie from youngdan

youngdan wrote:

You are gone beyond redemption Droughedasouth.

Let me give it to you straight. Jamie Dimon is president of JP Morgan. Jamie Dimon sits on the board of the NY Federal Reserve. Jamie was about to lose about 100 billion. Jamie looked into the mirror and told himself that he should give Lehman 138 billion so that Lehman could pay off Jamie. Jamie then told Jamie that as soon as Jamie got the cash, that he, Jamie, would reinburse Jamie for the 138 billion that Jamie had lent Lehman to give to Jamie. Jamie agreed with Jamie that this would be a good plan for Jamie. Jamie got 100 billion and then Jamie gave Jamie 138 billion

What is so hard to understand about this

Bloomberg is saying that Ireland might have to fork out 19 billion something or other to the banks .. does that mean even more public jobs will have to be cut and television and dog licences raised to pay Jamie so Jamie can pay himself?

Irish Times again says

1. The Government guarantee has made it harder for Government to acquire equity in the banks and has given them a blank cheque signed by us,
2. The banks need a very large cash injection.


http://www.irishtimes.com/newspaper/opinion/2008/1008/1223335466453.html


The Irish Government's blanket guarantee is the most far-reaching, going well beyond what would be needed to make the personal depositor secure and even guaranteeing all existing and future subordinated debt.
Subordinated debt is issued by banks at high interest rates to comply with regulations designed to supplement shareholders' funds in ensuring an adequate cushion to absorb losses.
By including this debt, the guarantee enables an Irish bank - unless it is forbidden to do so by some new regulation - to boost capital at a low cost, given that the risk is being borne by the State.

So they'll take the money, head in behind the closed door and tell us that they'll sort it out - the same ones who opened up the sh!tfloodgates on us in the first place? And our politicians voted for this wittingly?

Do we even know what's on the books of the banks? How does J.P.Morgan know and our Government doesn't. It's kinda important that we know how much crap we are wading through.

cactus flower wrote:

Irish Times again says

1. The Government guarantee has made it harder for Government to acquire equity in the banks and has given them a blank cheque signed by us,

Sound article.

We have been through this before, but in all probability several Irish Banks need to fail. There is no point guaranteeing or trying to keep afloat a lead weight. So in that sort of context how clever does the guarantee look?

Auditor #9 wrote:

So they'll take the money, head in behind the closed door and tell us that they'll sort it out - the same ones who opened up the sh!tfloodgates on us in the first place? And our politicians voted for this wittingly?

Do we even know what's on the books of the banks? How does J.P.Morgan know and our Government doesn't. It's kinda important that we know how much crap we are wading through.

Its beyond doubt that nobody knows.

This guy is a Harvard Business School graduate and an economic youtuber. He seems to be well respected in that community for his predictions which have got totally dire in the past few weeks/months. Here he is saying that bailing out citigroup is really bailing out some Saudi Prince types, that 7.7 trillion is getting pumped into the American economy by the Fed and that USA Today is reporting food bank shortages in parts of the states.

He is not an Obama supporter but here is talking about the need for managing Change ...