Archive - Nov 21, 2010

williambanzai7's picture

HAVE YE DONE WELL FOR IRELAND?





O COUNTRY, writhing in thy chains of debt--

With fierce, wild efforts to be free,--

Not seeing that with every strain--

The Ponzi globalists close firmer over thee...

 

Tyler Durden's picture

In Entitlement America, The Head Of A Household Of Four Making Minimum Wage Has More Disposable Income Than A Family Making $60,000 A Year





Tonight's stunning financial piece de resistance comes from Wyatt Emerich of The Cleveland Current. In what is sure to inspire some serious ire among all those who once believed Ronald Reagan that it was the USSR that was the "Evil Empire", Emmerich analyzes disposable income and economic benefits among several key income classes and comes to the stunning (and verifiable) conclusion that "a one-parent family of three making $14,500 a year (minimum wage) has more disposable income than a family making $60,000 a year." And that excludes benefits from Supplemental Security Income disability checks. America is now a country which punishes those middle-class people who not only try to work hard, but avoid scamming the system. Not surprisingly, it is not only the richest and most audacious thieves that prosper - it is also the penny scammers at the very bottom of the economic ladder that rip off the middle class each and every day, courtesy of the world's most generous entitlement system. Perhaps if Reagan were alive today, he would wish to modify the object of his once legendary remark.

 

Tyler Durden's picture

Irish Member of Parliament Foresaw The Truth: "We Are Screwed As A Country Because Of The Wrongdoing Of Others"





A year ago Irish Green Party politician Paul Nicholas Gogarty told Irish Labor Party TD "With all due respect, in the most unparliamentary language; Fuck you, Deputy Stagg, fuck you!... We Are Screwed As A Country Because Of The Wrongdoing Of Others." It took a year for Gogarty to be proven correct. Now that the "others" have been identified as virtually every UK and German bank, not to mention every insolvent financial institution in the world, and of course, the Fed's banking buddies, one wonders: just how will Ireland respond? Also, when will America finally see one of its pathetic excuses for representatives finally do the right thing and actually speak the truth. InTrade over/under: never. 

 

Tyler Durden's picture

Goldman's Take On The Irish Bailout





Earlier tonight, Ireland applied for conditional funding assistance and will therefore be the first Eurozone sovereign accessing the EU-IMF support framework instituted in May. The latest European Economics Analyst provides background. There are still several uncertainties surrounding the deal, including the government’s political support (a by-election is due this Thursday), and negotiations on the banks. The yield spread between 5-yr Irish government bonds and their German counterparts has fallen by around 100bp from the 600bp highs reached on 11 November. At this point, we see scope only for a further 50bp tightening. That said, we think that this represents an important step towards a resolution of EMU sovereign woes, and a gradual relaxation of the risk premium that has built up in Italy and Spain, and in Eastern Europe. - Goldman Sachs

 

Tyler Durden's picture

Full Text Of Irish Government/Eurogroup Statements On Ireland Bailout





The Government today agreed to request financial support from the European Union and the Euro Area Members States. The IMF will also be requested to assist in the provision of support. The Government welcomes the agreement reached at the Eurogroup meeting today that providing assistance to Ireland is warranted to safeguard financial stability in the EU and in the Euro Area...

 

Tyler Durden's picture

Will Google (And MSFT, And HP, And BAC) Be The Biggest Loser From The Irish Bailout?





A few days back we asked whether if as part of the now certain Irish austerity package, the imminent rise in the corprate tax rate for offshore companies based in Ireland would result in a crunch in the bottom line for US corporations such as Google. Now that a hike from the prevailing 12.5% rate is inevitable, US companies have launched an offensive to make it clear that only Irish citizens will be subject to the critical austerity measures. The Telegraph reports that "the Irish government has been given a stark warning from some of the biggest American companies in Ireland on the risk of a mass exodus if the country's low corporation tax rate is raised." If companies, which are purely circumventing much higher US corporate tax rates, also have to share the burden, they will simply depart from the already insolvent country, leaving it with even less tax revenues, thus accelerating the toxic loop of greater insolvency coupled with even less revenue. And since the IMF is backed primarily by the US, which is end-domicile to the bulk of the corporations in question, it is obvious that corporations have all the leverage and will most certainly get their wishes, further widening the chasm between the "corporation" and the simple Guiness-drinking, potato chewing peasant. In the brave new world, the pursuit of life, liberty and happiness appliues only financiers and corporations. Everyone else has been relegated to footnote status.

 

Tyler Durden's picture

Vigilantes Home In On Portuguese Beacon As Opposition Claims Government Understated Debt And Deficit Figures By About 25%





With Ireland now a lost cause, the next country which will see its bond yields surge to new records is Portugal. And just so vigilantes don't miss the hint, the Portuguese opposition party has stated that the country's budget deficit and public debt are "higher than those reported by the government." The claim is that Portuguese debt is about 30% higher than claimed by official statistics: instead of 82% of GDP, it is actually 112%. With bankrupt Greece having lied about virtually every aspect of its comatose economy, it is not as easy to dismiss the announcement as merely political bickering, and is sure to leads to at least a modest double digit basis point jump in Portuguese spreads. And once Portugal is rescued, just after New Year's, then it will be time for those last two countries of the peripheral block: Italy and Spain. And after them, it's the core's turn.

 

Tyler Durden's picture

Rhetorical Q&A On The Future Of QE2 With Goldman's Jan Hatzius





Goldman's Jan Hatzius, who after flipping his view on the economy in early August, and taking all of the street with him, has recently flopped back to a semi-optimistic outlook. What is amusing is that despite his suddenly far more bullish outlook, he, as well as the entire Goldman team, continue to call for $2 trillion in total QE2. Of course the two are completely at odds with each other, but hey - if it means 2011 will be another record bonus year, why leave something as irrelevant as logic stand in the way of that 3rd French Polynesian island. On the other hand, Hatzius is certainly not stupid, so in continuing with his rhetorical device of an hypothetical interrogation, today Hatzius releases his latest Q&A, this time focusing on the future of Quantitative Easing. What is most notable, is that as of today, the Dutch strategist sees the possibility for less QE2 post June, contrary to his recent missives which expected QE2 to continue until the full $2 trillion of expected monetary base "printing" was fulfilled. Then again, as Ireland has so aptly demonstrated today, at this point it is no longer a question of whether any economic policy is viable in the long-run. All that matters is for putting enough lipstick on the bankrupt global pig for another few months at a time, so that yet another sovereign constituency can foot the bills in what has become a rolling global bailout of country after country.

 

Leo Kolivakis's picture

The Liberation Controversy?





It's been exactly one year since I wrote about an exciting but controversial treatment for Multiple Sclerosis (MS), called the Liberation treatment. A lot has happened in a year, and I think it's important to share some of my thoughts with you. Please feel free to relay the information back to anyone you know who has MS.

 

Bruce Krasting's picture

Damned Either Way





The CBO is against extending the Bush tax cuts. So why are we doing it?

 

Tyler Durden's picture

Ireland Sells Out Its People To UK, Germany Bankers, Will Apply For Rescue Tonight





And so the can has been kicked down the road one more time as Ireland's Brian Lenihan has just sold out his country to the IMF, the ECB and the Fed for a few extra years of puppet control. RTE reports that EU Finance Ministers are due to hold a conference call later this evening during which Ireland is expected to make a formal request for a financial rescue package. What is not discussed is how the Irish people, now likely furious at being manipulated over a lost cause will express their anger over being the latest sheep used to bail out Europe's ever more insolvent banking system. They can at least sleep soundly, that they won't be the last. After today's rescue of Ireland, the vigilantes will focus their undivided attention on Portugal and Spain - perhaps these two countries will be a little less timid when it comes to rescuing Germany's banking oligarchy.

 

williambanzai7's picture

TuRKeY iN THe FeD





Just another P-H-D clown called Turkey in the Fed...

 

ilene's picture

Bernanke Throws a Hissyfit





Say what you will about Alan Greenspan, he was never a whiner. Unfortunately, the same can't be said for present Fed chairman Ben Bernanke.

 

George Washington's picture

The Fed Is Saying One Thing But Doing Something Very Different





Forget what the Fed is saying ... what is it actually doing?

 

williambanzai7's picture

THe GReaT DoW





But I'll tell you what hermits realize. If you go off into a far, far forest and get very quiet, you'll come to understand that you're connected with everything. --Alan Watts

 
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