The Definitive Unwrapping Of The "Irish Package"

Tyler Durden's picture

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Mr Lennon Hendrix's picture

Please tell Ireland what they have won!

It's a dick in a box!

AnAnonymous's picture

What the Irish have won:

- the capacity to remain in the consumption game instead of watching from the sidelines others eating like pigs in a trough.

-a much better deal than announced: more money for smaller interest.

 

The story has always been about how to get deeper into debt (debt means immediate consumption)

The Irish have luck, twice they found themselves with a strong hand.

Cleanclog's picture

People of Ireland - get really noisy and visible about your displeasure that your futures are to save the banks, yet again.  Do what it takes to make the budget vote on December 7 become a NO to the EU and IMF package.  Default, repudiate, whatever to not have this structure truly destabilize your futures.  

The banks took the risk.  Let them suffer the consequences.  You should not have to slave to bail them out again.

Hurry.  Loud and obvious.  Make your protests count.  Everyone.  Doctors, teachers, cabbies, sewer treatment workers - leave your desks, offices, classrooms, and protest!

Hedge Jobs's picture

great coverage of all this ZH! this is where you guys are really in your element. and shows how pathetically incapable the MSM is of keeping people in formed. If any one doubts the MSM are not in on the global ponzi just have a look at how hard they try "spin" the very serious shit going down in EU at the moment.

tahoebumsmith's picture

Just look back to July when the European banks had their stress tests. Seven of the 91 European banks that underwent stress tests failed the healthchecks, the Committee of European Banking Supervisors (CEBS) said. They include five Spanish banks - Diada, Espiga, Banca Civica, Unnim and Cajasur. The other two were Germany's Hypo Real Estate and Greece's ATEbank.

Doesn't even mention Ireland even having any problems, must have missed something in their stress findings. And with the biggest problems being found in Spain? Guess we are just getting started.

tired1's picture

More details of the stress tests are leaking out. Apparently the 91 banks being stress-tested were only examined on European sovereign debt losses for the bonds they trade, rather than those they hold to maturity, according to a draft European Central Bank document seen by Bloomberg.

 

http://www.guardian.co.uk/business/2010/jul/23/stress-tests-european-banks

Id fight Gandhi's picture

Debt slaves, check
Take pensions, check
Bond holders no loss, check

Shalom!

Blaise Pascal's picture

This will be only slightly more effective for Ireland than the Treaty of Versailles was for Germany after WW I.

Blaise

Caviar Emptor's picture

Congrats, ZH, for being right on top of the story from start to finish.

Make no mistake. The Ireland story, as with the rest of the Euro periphery, is all about saving the banks. German and French banks, that is, which have a combined $ 1 Trillion exposure to the PIIGS. Beyond that, I don't think the EU really has any interest in rescuing the Irish state. However keep in mind that the fate of the state and the banks are linked so everything was done to ensure that German and French banks wouldn't collapse. 

The crisis has served to reveal one of the key dirty secrets of the EMU: it was designed as a vehicle to enrich the banks of the core countries by using the periphery much as Wall Street used the US 'provinces' to peddle mortgages and mortgage backed securities. 

Croesus's picture

If the Irish turn their backs on their past today, then they will turn their backs on their future tomorrow.

You are known as Fighters, Ireland. 

Don't ignore your heritage, just when you need it most.

Get MAD. Get REALLY MAD.

http://www.youtube.com/watch?v=1q2twYD59zs&feature=related

 

web bot's picture

The global financial system won't make it until 2013...

What we are witnessing is the early stages of the snowball rolling down the hill... This won't last for long.

#uck, every day now on TV you can hear someone talking about default of the USD... Go back 3 years, if anyone would have said something like this then, they'd be given small white pills and shown the door. This is how far things have come.

Cleanclog's picture

Stockman on Zakaria today made this point pretty solidly.

Scary. It really is gonna happen.

knukles's picture

“In order to gain access to external conditional funding, an EMU sovereign will in the future need to pass a debt sustainability test conducted by the EC and the IMF, in liason with the ECB. A failure to pass would result in debt restructuring involving private sector participation.”

 

In other words, if we the official organs of all seeing and knowing gubamint screw it up so fucking bad that even direct intervention by either Jesus or Mohammed cannot fix it, we’ll throw up our hands, run about in circles searching for sombody to whom we might surrender with dignity and capitulate as market forces tear us to shreds which we probably shouda done in the first place instead of butt-fucking around with this nonsense.  So fuck it, you’ve been warned.    

hardcleareye's picture

I was interested in reading how the Irish press covered this issue.  I googled Irish online press and went to about 25 at random of the 70 or so listed.  With the exception of the Irish Independent, the attitude was in essence "resistance is futile" "A difficult but essential deal" (if they covered the issue at all) etc...  The Irish media doesn't appear to support default.  It was an interesting read.....  If the press coverage represent the "pulse" of the people, I doubt that Ireland will default.

tom a taxpayer's picture

Breaking News - Barney Frank and Richard Simmons fly into Dublin with aid for Ireland.

RTE reporters spotted a jumbo C-135 Stratolifter cargo plane landing with lights out at Dublin airport at 3:40 am. Irish armed forces unloaded hundreds of mysterious pallets from the huge C-135 to a secure airport warehouse, but only two men in trench coats were observed debarking from the C-135 Stratolifter. The two trenchcoaters hurried into a police car and were driven to the posh Merriam Hotel. 

As luck would have it, an Irish Times reporter staggering and looping round-and-round in the revolving front door of the Merriam recognized Barney Frank and Richards Simmons as the trenchcoaters entered the Merriam at 4:40 am. Reporters rushed to Prime Minister Cowen's residence demanding an explanation for the sudden appearance of the mysterious cargo plane and two trenchcoaters in Dublin. At a 6:00 am press conference, Cowen said:

"The Irish government had hoped to announce a great gift to the Irish people later today after the EU meeting. But you kids in the press caught Santa coming down the chimney so I guess we will have to announce this special Christmas gift now. 

"We know this will be a tough Christmas and even tougher next few years as millions of proud Irish citizens bend over and suffer repeated, brutal raping from the EU, IMF, foreign bankers, Irish bankers, and the Irish Government. We think these gang rapes can go much better for everyone involved if the Irish people learn how to relax and limber up. Just like the Chinese do tai chi every morning, we want the Irish people to do yoga every morning.

"Who better than Barney Frank and Richard Simmons to teach the Irish people how to limber up and learn to take 5% or 6.7% or, oh my hold-on-to-your-rosaries, 9% interest from the big swinging dick bankers. Starting next Monday on RTE TV, Barney and Richard will host an early morning yoga exercise show called "Barney and Dick up with the rising sun".

"Barney and Dick delivered a C-135 Stratolifter full of lululemon yoga apparel, enough for every man, woman, and child in Ireland. Yes, Barney, Dick, and the Irish government plan to insure Santa places lululemon yoga apparel under every Christmas tree in Ireland. Ho, Ho, Ho!"

Lux Fiat's picture

For a moment there, I thought that the pallets contained K-Y.  Silly me.

Lord Welligton's picture

"We think the Irish deal will lead to a moderate compression in Irish government bond spreads. The encouraging elements are the relatively speedy negotiations under the emergency framework agreed this Summer, the emphasis given to the recapitalization of domestic banks, and the long maturity of the loans. We provide details below."

That is utter bollocks.

Do people really pay for this shite?

Lord Welligton's picture

"The ministers’ announcement clearly states that no private sector participation in restructuring procedures will apply ahead of mid-2013. This will validate the upward sloping term structure of peripheral EMU sovereign bond spreads, particularly up to 5-yr maturities."

More bollocks.

Do people really pay for this shite?

 

 

Lord Welligton's picture

"We remain of the opinion that the risk premium on Italian and Spanish bonds – the larger EMU non-core countries – already largely discount these tensions."

More bollocks.

Do people really pay for this shite?

 

Lord Welligton's picture

"suggests that we are far from the level of systemic risk seen in the wake of the Greek rescue, and we do not see this changing."

More bollocks.

Do people really pay for this shite?

Lord Welligton's picture

"The Irish Package (jokes to start in 5...4...3...)"

 Racist cunt.

OK. If that's the way you want to play.

How's Peter Sutherland these days?

Is he still "Irish"? Or is he too busy sucking Lucifer’s cock?

He is doing the work of God? No?

In the immortal words of a Deputy in Ireland.

"Fuck you Goldman Sachs. Fuck you."

 

 

 

knukles's picture

Do any of these people not realize how they are embarrassing themselves? 
Anymore of this nonsense and Timmah will real and truly need to be replaced at Treasury by somebody the likes of Snooki or Jeremiah Wright to competitively deprecate the confidence in the US dollar.

slvrizgold's picture

Euro goes down; gold goes UP.

Yen goes down; gold goes UP.

US dollar goes down; gold goes UP.

Any major currency goes down; gold goes UP.

 

Gold goes up; silver goes UP EVEN MORE.

You know what to do.

oh_bama's picture

The Ireland politicians may be in trouble and lose their jobs. So it is difficult to understand why they agreed with this package. In 8 years they will be paying about 35 billion euros of interests, and that is a solid 20% of their GDP. (assuming their GDP will drop 15% over 5 years and then stablize) What they are smoking? Why defaulting is not an option? For Ireland people for god's sake

M.B. Drapier's picture

The current Irish government will be out of power by February, so the current opposition parties will be in power to get the blame for the interest payments and economic pain. The government has even made sure that the "pension reserve" SWF will be blown on the banks as part of the EFSF deal, taking away the stimulus money that the opposition was planning to bribe voters with.

Josephine29's picture

I find the confusion over ther interest rates which are being charged to be typical of the EU. I notice that this Goldmans article waffles on that point. Of course the early cost of funds will be cheaper as the IMF according to its website only charges 3.12%!

However I note that notayesmanseconomics has done his own calculations.

So the remaining funds from the bilateral loans/EFSM/EFSF cost 4. 9 billion less 1.49 billion or 3.41 billion Euros per year. As they are 45 billion in total then the interest rate on them is approximately 7.5%. This is not what it has been badged at.

 

http://notayesmanseconomics.wordpress.com

 

Mcat's picture

Love it. Solving a debt problem with more debt. It's like having a 100 lbs ball and chain tied to your neck for 7 years, and then what happens. What for? To save the World from themselves. The Irish are smart, take the money now, hold election, go back on your word and show Europe the middle finger. 

cashcow's picture

Can someone confirm, but it looks like the current government actions contravene article 29.5.2 of the Irish constitution:

http://bit.ly/fFLnQ5

Such much for democracy.