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Paddy Meet Ponzi: Irish Banks Lend Billions To Each Other For Use As ECB Collateral

Tyler Durden's picture





 

When about six months ago we noted that the European ponzi is in full force, courtesy of banks using any toxic assets as collateral to the ECB, little did we know just to what heights this scheme would reach. Today we get our answer. The Irish Times writes that Irish Banks are issuing billions in bonds to themselves "under the Government guarantee to borrow cheaply from the European
Central Bank and to avoid drawing more heavily on emergency lending from
the Irish Central Bank. Four banks issued bonds worth €17 billion to themselves last month under
the Government’s extended guarantee, the Eligible Liabilities
Guarantee, to use as collateral to borrow from the ECB. “What you have here is micro-quantitative easing, or money printing,”
said Cathal O’Leary, head of fixed-income sales at NCB Stockbrokers.
The banks are issuing unsecured loans to themselves.” And since this is happening in Ireland, it is most certainly happening everywhere in Europe. And yes - this is the pinnacle of a pyramid scheme - this is about a thousand times worse than what US banks did when they purchased CDO tranches from each other, as the risk in the Irish case is ultimately borne by the European taxpayer. But such is life when the entire financial system continues to be massively insolvent, and only openly Ponzi schemes of this nature allow the system to continue operating on a day to day basis.

From IT:

All the bonds mature in April and May when the details of the banks’ plans to sell off assets and shrink the size of their businesses must be agreed under the EU-IMF bailout deal.

Bank of Ireland issued the largest amount, €9 billion, on four bonds on January 26th. AIB issued €2.63 billion on January 25th, Irish Life and Permanent €3.1 billion the following day and EBS building society €1.7 billion on January 28th.

Bank of Ireland raised a further €980 million on another bond on February 10th.

The bank said that the issuing of the bonds represented “a technical adjustment” replacing sterling bonds backed by UK mortgages as the ECB stopped accepting sterling loans as collateral from the start of the year.

AIB said that “own-used” bank bonds could be used as collateral from the ECB if Government guaranteed. The banks have leaned more heavily on central bank funding from Frankfurt and Dublin due to the loss of deposits and the closure of the markets to Irish-issued debt.

The Central Bank said that access to ECB operations allows the banks obtain funding that is not available in “the continued stressed market conditions”.

The Government is in talks with the ECB, EU Commission and the IMF about the pace and timing of asset disposals by the banks aimed at reducing their reliance on central bank funding so they can fund themselves on their own.

Banks in Ireland had borrowed €126 billion from the ECB at January 28th, representing almost a quarter of all borrowings drawn from Frankfurt by euro zone banks.

The Central Bank in Dublin has provided a further €51.1 billion to the Irish banks through exceptional liquidity assistance (ELA) at this date on ineligible ECB collateral.

Yet is this really surprising? After all, with the Fed as ultimate backstop to Europe, as has been the case ever since the advent of the FX swaps, which are still being used to this day, and with Illinois relying on Europe of all place to funds its pension funds, and with everyone relying on everyone else for a continued "funding" circle jerk, it is now clear that the entire global financial system is and has been for two years one massive ponzi scheme. Luckily, this time it is different, and whereas Madoff ended up in jail, Bernanke will soon receive the Congressional Medal of Freedom from the master puppet of it all.

 


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Thu, 02/17/2011 - 12:07 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Guess it's just too hard for them to admit the final collapse. 

No, they will bend the rules up to the end, in a childish postponing... 

Thu, 02/17/2011 - 12:16 | Link to Comment IBelieveInMagic
IBelieveInMagic's picture

Market is green -- it has all been digested. All is well!

Thu, 02/17/2011 - 18:22 | Link to Comment gorillaonyourback
gorillaonyourback's picture

just givin a drunk another drink.  the drunk will eventually collapse afterall he is drinkin 180 proof flavored kool-aid

Thu, 02/17/2011 - 12:03 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

I don't know why, but my subconscience is telling to buy more precious metals.

Thu, 02/17/2011 - 12:14 | Link to Comment SWRichmond
SWRichmond's picture

In the process of cashing out my IRA right now.  This sucker's gonna blow.

Thu, 02/17/2011 - 12:28 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Good decision. Chose silver, because it has more potential than gold, and will be less subject to a possible confiscation. 

Thu, 02/17/2011 - 12:40 | Link to Comment Things that go bump
Things that go bump's picture

Sorry, comment inserted here in error.

Thu, 02/17/2011 - 12:45 | Link to Comment Zero Govt
Zero Govt's picture

TheGreatPonzi  -  depends how much you're taking out, but a decent legit reason is a private purchase (art, car, classic car etc)

Thu, 02/17/2011 - 12:52 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Thanks for your answer (and sorry for Things that go bump, I have edited for privacy concerns after thinking about it toroughly). 

But I still welcome your ideas. 

Fri, 02/18/2011 - 01:40 | Link to Comment Things that go bump
Things that go bump's picture

Do banks in Switzerland have the same restrictions?  

Fri, 02/18/2011 - 09:54 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

No, they are far more "cool" and liberal on the subject. 

Thu, 02/17/2011 - 12:11 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Mark to leprechaun.

This story is exactly one month early.

Thu, 02/17/2011 - 12:21 | Link to Comment dwdollar
dwdollar's picture

The Irish banks could claim they were borrowing gold from Leprechauns and it wouldn't shake the market.

Thu, 02/17/2011 - 12:04 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

I would like to formally apologize to any English I might have accused of unfairly characterizing the Irish as being lazy, untrustworthy morons.

Thu, 02/17/2011 - 12:10 | Link to Comment Bob
Bob's picture

You've  described the banking overlords and minions who control every government on Earth at this point.  There's nothing special about the Irish.  Let's see what the Irish people have to say--aren't elections coming up?

Thu, 02/17/2011 - 12:12 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

I'm not paying for Ben's insanity. I went Galt in 2008.

Thu, 02/17/2011 - 12:18 | Link to Comment Bob
Bob's picture

How is it that everybody can claim they're Galt? 

Thu, 02/17/2011 - 12:33 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Just watch tax receipts. It isn't hard to hide income in a lot of industries.

Thu, 02/17/2011 - 12:13 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

man, you're a silly fool.

Thu, 02/17/2011 - 12:04 | Link to Comment morph
morph's picture

What a surprise.

Thu, 02/17/2011 - 12:04 | Link to Comment PicassoInActions
PicassoInActions's picture

And the EURUSD going up.....

Well, after they figure that american banks fucked americans, its time for european banks to fuck europeans taxpayers

Thu, 02/17/2011 - 12:06 | Link to Comment beastie
beastie's picture

Bankers swapping spit. Big surprise.

Thu, 02/17/2011 - 12:06 | Link to Comment fajensen
fajensen's picture

As long as the banks use those funds to buy treasuries with, thus funding EU government deficits, everyone is happy and it will continue!

Thu, 02/17/2011 - 12:13 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

That's exactly the point of the 'extend and pretend' policy.

As long as the base of the Ponzi is fed with liquidity (value or money, doesn't matter anymore) everything continues like yesterday. Your bank continues to open, you grocer continues to sell, your school continues to teach crap, Bloomberg and CNBS anchorettes continue to talk about the 'recovery', your mother continues to believe the economy -- and the world -- are wonderful.

But if the vigilance of the central banking cartel fails just one second, the systemic collapse in en route.

Welcome to the economy of global madness. 

Thu, 02/17/2011 - 13:09 | Link to Comment macholatte
macholatte's picture

+1

 

All warfare is based on deception.
Sun Tzu

 

Thu, 02/17/2011 - 13:31 | Link to Comment AnAnonymous
AnAnonymous's picture

As long as the base of the Ponzi is fed with liquidity (value or money, doesn't matter anymore) everything continues like yesterday.

 

That is the point. But it is not central bankers'vigilance that establishes the link between money and value.

The end of game will only be when the link between money and value is no longer possible.

And that is not for tomorrow. Save ME manage to cut their ties... At this point, it could be nasty.

Thu, 02/17/2011 - 12:10 | Link to Comment Problem Is
Problem Is's picture

Repo 105, Irish Whiskey Style
Go Paddy bankster, Jamie & Lloyd wannabes...

Thu, 02/17/2011 - 12:10 | Link to Comment Racer
Racer's picture

What's good enough for Benron, is good enough for the Irish

Thu, 02/17/2011 - 12:10 | Link to Comment SilverSerf
SilverSerf's picture

Silver to $31, all that matters.

Thu, 02/17/2011 - 12:15 | Link to Comment SWRichmond
SWRichmond's picture

Watching that too today.  Good stuff.

Thu, 02/17/2011 - 13:42 | Link to Comment Bob
Bob's picture

Holy sheet, 31.36 and rising!

Thu, 02/17/2011 - 12:11 | Link to Comment Bob
Bob's picture

I'm sorry, but this really is becoming hilarious!

Thu, 02/17/2011 - 13:00 | Link to Comment Zero Govt
Zero Govt's picture

my thoughts exactly.... the usual fuk-wits and the usual Clown Show... too funny for words

Thu, 02/17/2011 - 12:10 | Link to Comment doggis
doggis's picture

it seems that the one world financial order is determined to completely stamp out market cycles!!! this seems to be the goal intended. this seems to be the design of the new economics going forward. i am behind the learning curve - as this just dawned upon me.

Thu, 02/17/2011 - 13:02 | Link to Comment Zero Govt
Zero Govt's picture

forget it, these idiots can't fake an economy or fake recovery or fake solvency... these politicos are absolutely delusional they can hide from capitalism or hold off its Grim Reaper... market cycles in full deadly force coming very soon, guaranteed 

Thu, 02/17/2011 - 12:11 | Link to Comment Sabremesh
Sabremesh's picture

The bank said that the issuing of the bonds represented “a technical adjustment” replacing sterling bonds backed by UK mortgages as the ECB stopped accepting sterling loans as collateral from the start of the year.

Does anyone else know about this? What was the reason?

Thu, 02/17/2011 - 12:14 | Link to Comment karzai_luver
karzai_luver's picture

UK is BROKE, not that it's a bad thing.

 

Thu, 02/17/2011 - 12:11 | Link to Comment irishlink
irishlink's picture

The Rodent lives up to his name. As an Irish person who lived in USA ,I noticed that we had much more ability than the average American. We have contributed greatly to the building of USA. Remember in a former Empire like the UK, wealth was generated by pillage and plunder not by graft!

Thu, 02/17/2011 - 12:35 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Amen.

The non-serf Irish left.

The fact that you are a current Irishman and still look down your nose at America, says it all.

Thu, 02/17/2011 - 12:47 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

As an American of Irish descent, we built this nation and now are being robbed of anything useful by our bankster overlords. Disgusting!!

Thu, 02/17/2011 - 12:13 | Link to Comment Dick Darlington
Dick Darlington's picture

Insolvent state guaranteeing insolvent banks, sweet. So by carving a "govt guaranteed" mark into a spud and stamping those bonds they issue to themselves with it, it's ok to get almost free money from CB. Sounds like fun, too bad it's only for the banksters as usual.

Thu, 02/17/2011 - 12:25 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

what you describe sound eerily like the USA scheme /sarc. just substitute Treasuries. I can hear those Irish bankers now: "OK, ya fuckwads...if that's how you want to play it: watch this! hahaha"

Thu, 02/17/2011 - 15:36 | Link to Comment MsCreant
MsCreant's picture

Not extend and pretend but Banker's Roulette. It is a loaded gun and they will keep playing.

Thu, 02/17/2011 - 12:14 | Link to Comment Sweedumz
Sweedumz's picture

You can't teach an old dog new tricks!

This was exactly the same scheme that Irish Banks used before and just after the financial crisis began. In order to stay solvent, Anglo Irish would borrow millions in cash from Irish Life and Permanent for a few days just before Anglo was up for "review". The auditors would walk away happy and Anglo would throw the money back to ILP the very next day. And of course when the time came, ILP would borrow money off Anglo for a short time. It was a game of passing the money under the table as the regulator went around checking how much everyone had.

 

I'm reminded of the tale of the American who goes to a hotel in an Irish village and gives a £100 downpayment. You can Google that one.

In fact, Irish bank directors used this same scheme to hide their _own_ personal loans from auditors. They would transfers loans using this method to avoid the regulators already sleepy eye.

And now they're about the same trick again. Number one example of why firing existing management after a crisis is a neccessary step.

Thu, 02/17/2011 - 12:24 | Link to Comment Quintus
Quintus's picture

No, this scheme is even more ludicrous than the situation you describe.

What happens is that, let's say, AIB issues Bonds to AIB.  AIB then goes to the ECB and says 'Hey, can I borrow some money using this debt that I owe to myself as collateral?'  ECB says 'Sure, I don't see anything wrong with that'.  AIB survives for another day.  ECB survives for another day.  Everybody happy.

Thu, 02/17/2011 - 12:28 | Link to Comment topcallingtroll
topcallingtroll's picture

Insurance companies do the same thing. That is how the oracle of omaha got spanked for shenanigans with general re, but they were all doing it.

Thu, 02/17/2011 - 12:15 | Link to Comment Misean
Misean's picture

Well hell, I'll just loan myself a few billion Euro then...this making money stuff just keeps getting easier.

Thu, 02/17/2011 - 12:16 | Link to Comment buzzsaw99
buzzsaw99's picture

Sweet!

Thu, 02/17/2011 - 12:16 | Link to Comment Bruno the Bear
Bruno the Bear's picture

"...micro-quantitative easing" .

 

Surpising the US TBTF banks haven't thought of this - BAC/C/JPM could print their own currencies.  Kind of like Confederate vs. Yankee money during the civil war.

Thu, 02/17/2011 - 12:23 | Link to Comment falak pema
falak pema's picture

By Irish Malt, its the only thing irish left. Even their women now sing in russian. Apparently the russians are buying up Dublin at cheap rates. You never know they may run out of vodka in Moscow.

Thu, 02/17/2011 - 12:24 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Micro QE is still better than Macro QE.  In the former you don't have far to walk between banks.

Thu, 02/17/2011 - 12:26 | Link to Comment topcallingtroll
topcallingtroll's picture

Oh those haughty europeans criticising us for QE. Looks like they do the same thing, but are trying to keep it on the downlow. Caught you in the act!

Thu, 02/17/2011 - 12:28 | Link to Comment Sean7k
Sean7k's picture

Everything is fine and good, until somebody asks: "does money have value?". Then, "how is that value determined?" and the final revelation: "what is that value based on?" . When they all realize it is based on a deception of grandiose proportions, it will be like the biggest domino display in history getting an accidental start...

Thu, 02/17/2011 - 12:30 | Link to Comment trav7777
trav7777's picture

well, when debt=money and debt=wealth, it's pretty clear that a loan from one company to another should be carried as an ASSET on both balance sheets.

Think about it this way, Lender will carry the loan to Borrower as an Asset and Borrower has the fictitious cash or line of credit to use as collateral.

Thu, 02/17/2011 - 12:32 | Link to Comment Jim B
Jim B's picture

It is starting to seem like the endgame for Fiat currencies.  Ponzi on!

Thu, 02/17/2011 - 12:34 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

GOOD NEWS for the "market" ha! they're runnin' that Dow up to yet one more every-day 52-week high. Again. And it's not even noon. Can't wait for 2:30-3:00 run up......

Thu, 02/17/2011 - 12:37 | Link to Comment apberusdisvet
apberusdisvet's picture

Wow; it's become like playing Monopoly under the influence of LSD.  Didn't the squid say that the Euro would go to 150?

Thu, 02/17/2011 - 12:42 | Link to Comment Jason T
Jason T's picture

the entire worlds financial monetary system is done.  It's finished! 

Thu, 02/17/2011 - 13:58 | Link to Comment equity_momo
equity_momo's picture

Agreed. Dow can straightline to 36k , govn can fudge UE stats and CPI all they like , its all totally meaningless now - its over. Just waiting for the blastwave now.

Thu, 02/17/2011 - 12:45 | Link to Comment Mr Joshua
Mr Joshua's picture

Newb question:

 

The banks are borrowing gov backed money from each other as collateral for ECB loans. How does this work in terms of collateral for the ECB? 

Do they need the ECB to borrow more than they can from each other? How does the smaller amount they borrowed from each other then cover the risk of a larger loan from ECB?

 

Thanks : )

Thu, 02/17/2011 - 12:53 | Link to Comment MsCreant
MsCreant's picture

I never get to do this, but I'll say it, here, now.

I told you so. Been telling you so. It is the only way it could possibly be working. Everyone is kiting checks to everyone and looking the other way.

GLOBAL CLUSTERFUCK.

Thu, 02/17/2011 - 13:17 | Link to Comment macholatte
macholatte's picture

+1

 

I never blame myself when I'm not hitting. I just blame the bat and if it keeps up, I change bats. After all, if I know it isn't my fault that I'm not hitting, how can I get mad at myself?
Yogi Berra

 

Thu, 02/17/2011 - 13:40 | Link to Comment Bob
Bob's picture

Exactly!  When I saw this I remembered the good old days when you could kite a check and play the float.

Thu, 02/17/2011 - 14:00 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Behold ,another pig in a poke

www.youtube.com/watch?v=rlxP9p8Dx4k

 

Thu, 02/17/2011 - 15:08 | Link to Comment MsCreant
MsCreant's picture

++++AWESOME

At least some inspired artwork is coming out this crap! 

Thu, 02/17/2011 - 13:17 | Link to Comment RemiG2010
RemiG2010's picture


Belgium's 250 days without a national government.ECB supporting parts of European zombie banking system. Why am I not surprised? The new normal!

 

 

 

Thu, 02/17/2011 - 13:18 | Link to Comment macholatte
macholatte's picture

Belgium's 250 days without a national government

Do you think people could learn from this?

Never mind.

Thu, 02/17/2011 - 13:21 | Link to Comment moldygoat
moldygoat's picture

Honestly, don't you think its up, up, up and then a crash of epic proportions, one so catastrophic that there is no ability to get out at all?

It looks to me like the end of extend and pretend is actually extend cause we know the outcome and everybody is fu^%ed but us.

Mark my words, epic cyber takedown of entire electronic system will wipe out all the shenanigans and peoples money. Only the bankers will survive.

I am starting to believe and have purchased some PM's

There is no other way out.

Thu, 02/17/2011 - 13:27 | Link to Comment Ferg .
Ferg .'s picture

I almost gagged on my cornflakes this morning reading this . Unbelievable  . I mean the state is already crippled with bank guarantees and now this , banks issuing bonds to themselves .  Who would accept this garbage as collateral ? This type of despeartion will only increase the speed and depth of deposit withdrawls . And that's really what's at the heart of the matter ( after the toxic assets ) , bank deposits . People are withdrawing their savings because they're worried , they need a reinvigoration of confidence . This travesty completely undermines any residual confidence that has mananged to survive the past few months .

I have an account with AIB and it's only in the past few weeks that I've started to get concerned . Now I'm more than a little nervous .

Thu, 02/17/2011 - 13:27 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Stop sitting on your hands mate, do the needful.

Thu, 02/17/2011 - 13:39 | Link to Comment Ferg .
Ferg .'s picture

Got my finger hovering over the " withdraw funds " button .

Thu, 02/17/2011 - 14:07 | Link to Comment trav7777
trav7777's picture

IBM's Watson has proved that you can't ring in faster than the machines

Thu, 02/17/2011 - 14:30 | Link to Comment ThirdCoastSurfer
ThirdCoastSurfer's picture

Programming Code: Hit buzzer when period or exclamation mark detected if confidence level greater or equal to 50%.  

My lingering hope for humanity (and the ability to cheat or lie as so boldly displayed by the banks) was dashed when I realized that Ken could not intentionally hit the buzzer faster and then hope he knew the answer: Probability 99%. It's clear he was successful  several times in the long pregnant pauses of his questions, but you can't buzz in before the question is fully read but Watson analyzes each noun/then verb/then adjective of text so the confidence threshold is often reached long before the question is fully read and it really was a race to determine when it is allowable to buzz in and a "period" is a pretty good clue!

Thu, 02/17/2011 - 13:27 | Link to Comment DavidC
DavidC's picture

I don't normally swear, but un-fucking-believable...

The whole thing is just insane. And the stock markets keep going up...

DavidC

Thu, 02/17/2011 - 13:43 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

yup. at 11:30 S&P touched 2-year high. but that dip-shit Dow missed his NEW 52-week high by a lousy 0.76 point. somebody better call LLLLoyd or Jamie...oh wait, I forgot about the standard eod push....whew!

Thu, 02/17/2011 - 13:36 | Link to Comment Farcical Aquati...
Farcical Aquatic Ceremony's picture

I'm gonna write "Infinity" on a piece of paper and declare myself an infinity-aire. It will be a global currency. Hardest part will be deciding which of the central bankers' mugs to put on it.

Thu, 02/17/2011 - 21:43 | Link to Comment StychoKiller
StychoKiller's picture

Ed Gein, or Alfred E. Neuman -- both fine choices!

Thu, 02/17/2011 - 14:12 | Link to Comment Miles Kendig
Miles Kendig's picture

This is the stuff that cannot be hidden any longer Tyler.  What kind of collateral do you think the fed has been taking all this time, besides unused frequent flyer miles from folks like Mubarak & Hughes Airwest (give 'em the banana) that is?

P&L, just like market funding is a complete joke.  Heck, Chris Whalen just talked about valuation issues within WFC that potentially contributed to their CFO's immediate departure.  Get with it!   It's sov, corporate & balance sheet all rolled into one, feeding off each other to support "confidence".  THE watchword in the national security context within the OECD.  Anything that can be worked to support confidence, either narrowly within market segments or in broad society generally is getting worked.  Hard.  

This Irish financial services funding scheme is a fart in a hurriciane compared to everything else.  Why do you think we've been hearing the pro euro crowd in the UK bemoaning their not entering the MU, again?  Knock, knock!!!

http://www.youtube.com/watch?v=auszi9bUr3o

Still gotta work through the rest of the show before we see racer X.  At least we can listen to the X

http://www.youtube.com/watch?v=CPAR2zSV84I

Thu, 02/17/2011 - 15:26 | Link to Comment MsCreant
MsCreant's picture

Hey Miles, nice to see you.

My dog despises the smell of bullshit...(inside joke if you saw the movie with Miles in it).

Miles, we may need you to go back, just not there.

If we can imagine it, they are doing it. You don't need to be a conspiracy theorist to get this one. 

Once we knew Treasuries were going to PDs and then being put on the Feds balance sheet a few days to a few weeks later, and the PDs got a fee for it, that opened up the imagination to all the possibilities.

THEY ARE DOING IT BECAUSE WE LET THEM. WE CAN"T BELIEVE IT IS REALLY HAPPENING, WE ARE SO INCREDULOUS, WE ARE FROZEN IN OUR TRACKS.

Thu, 02/17/2011 - 18:15 | Link to Comment Miles Kendig
Miles Kendig's picture

Gotta start somewhere .. might as well dance our way to it as a society. Beats the hell outta the anarchy that is lawless governance personified as the struggle rotates to the last ones standing.  The anarchists and the dissidents. 

Funny how this is one of the only lessons that stuck from high school  ;)

http://www.youtube.com/watch?v=wjbVmX1_wh8

It's just that now all those funk fakin' fuckin' anarchists are serious blood borne disease ridden bastards & bitches.

Good to see you too, ya gun toting, answer gettin', smokin' fight clubber.  While we appreciate that Follet still can't find it, even with transitory help from Larry Craig.

Thu, 02/17/2011 - 13:56 | Link to Comment DonutBoy
DonutBoy's picture

I don't get it.  They create a bond backed by the ECB and sell it?  That's what I thought they were doing - the ECB provding the ratings "air-cover" for the insolvent banks to issue bonds.

So now they create the bond and "buy it"?  Then use it for collateral with the ECB?

Jeez - I can't even figure it out. I need more silver.

Thu, 02/17/2011 - 15:16 | Link to Comment irishlink
irishlink's picture

I have never looked down on America and how you could extrapolate that view from what I wrote says more about your insecurities .Furthermore,  it was also very presumptuous to assume I was male. But then we know about the minds of people who assume.

Thu, 02/17/2011 - 17:50 | Link to Comment M.B. Drapier
M.B. Drapier's picture

http://blog.cornerturned.com/ by Lorcan Roche-Kelly.

Thu, 02/17/2011 - 20:32 | Link to Comment Buck Johnson
Buck Johnson's picture

This is horrible, they are going to destroy that islands whole economy very very soon.  The funny thing is that if they are doing it, who else is doing it.

Do NOT follow this link or you will be banned from the site!