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

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Sun, 11/21/2010 - 17:58 | 744964 bugs_
bugs_'s picture

good to see more of this get exposed

more unsustainable fraud behind every miracle story

Sun, 11/21/2010 - 23:02 | 745009 G-R-U-N-T
G-R-U-N-T's picture

And another fraud bites the dust...


Another one gone and another one gone...




Sun, 11/21/2010 - 19:40 | 745106 Cruel Aid
Cruel Aid's picture

Fraud... We are the fraud. Google is taking the path of least taxes. Should they pay US taxes straight up?

First sign of Ireland raising taxes sounds like the loop gets broken and Goog is overpriced by 20%.

And that CCX deal was absolutely a scam. It will be back, don't worry.


Sun, 11/21/2010 - 19:51 | 745136 scatterbrains
scatterbrains's picture

surely goog will get an exemption.

Sun, 11/21/2010 - 20:31 | 745177 masterinchancery
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US taxes ridiculously high; lots of places to go besides Ireland, Google has all the cards in this game.

Mon, 11/22/2010 - 07:10 | 745877 Oh regional Indian
Oh regional Indian's picture

Indeed Master. The beauty of virtual corporations, with computers as the only movable asset.

They can nation hop from low to no taxes for a long time as everyone will be keen to suck on the GOOG teat. They have development centers in every major city in India.

At least when manufacturing companies sought to move sue to tax issues etc., they had plant and machinery to think of.

Not no more.



Sun, 11/21/2010 - 21:21 | 745241 nmewn
nmewn's picture

"And that CCX deal was absolutely a scam."

Not from the short side ;-)

GM is the next one.

Mon, 11/22/2010 - 00:31 | 745535 M.B. Drapier
M.B. Drapier's picture

The Irish "miracle" was quite genuine up to some point after around 2000ish, then the property madness took over.

Mon, 11/22/2010 - 07:20 | 745883 Oh regional Indian
Oh regional Indian's picture

The American "miracle" was quite genuine up to some point after around 1982ish, then the Bush madness took over.



Sun, 11/21/2010 - 17:58 | 744965 Horatio Beanblower
Horatio Beanblower's picture

Ireland's money laundering HQ - http://en.wikipedia.org/wiki/International_Financial_Services_Centre


If there is a dirty deal to be done, it will be done in this building.

Sun, 11/21/2010 - 18:07 | 744975 M.B. Drapier
M.B. Drapier's picture

It's Vegas for German banks, among other things.

Sun, 11/21/2010 - 18:00 | 744966 gecko_x2
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Off topic but what happened to chat.zerohedge.com ?

i don't want to live another day without that great service! :p

Mon, 11/22/2010 - 01:24 | 745620 Howard_Beale
Howard_Beale's picture

It's right where it always was. Still there.

Mon, 11/22/2010 - 02:51 | 745730 gecko_x2
gecko_x2's picture

not for me.. got disconnected over the weekend and there is no reply on ports 6697 or 6667

Sun, 11/21/2010 - 18:07 | 744974 unwashedmass
unwashedmass's picture


yup...another population being held hostage by our power elite. fantastic.

Sun, 11/21/2010 - 18:09 | 744976 revenue_anticip...
revenue_anticipation_believer's picture


...i was just gonna point THAT out...google 'do no evil' ha ah ha liar liars like all the rest...


Sun, 11/21/2010 - 18:11 | 744979 revenue_anticip...
revenue_anticipation_believer's picture

1848 all over again...IRA do your duty, theres some real targets with names...

Sun, 11/21/2010 - 18:20 | 744989 M.B. Drapier
M.B. Drapier's picture

Is the 12.5% necessarily toast? The Irish government has been making a song and dance about it all week, including at the press conference this evening, which suggests that they think it's safe. It's even been suggested that the whole corp-tax drama is deliberate misdirection. ('FF' stands for the Irish ruling party.)

Sun, 11/21/2010 - 18:21 | 744990 AUD
AUD's picture

Yet the Oirish peasants will pay their potato tax to the Government regardless.

Sun, 11/21/2010 - 18:26 | 744998 asianist
asianist's picture

How dare those evil corporations get away with providing nothing but increased employment and economic value? They must give something back to the community!

Sun, 11/21/2010 - 20:07 | 745156 Zon
Zon's picture

How about giving back those tax dollars they steal when they get bailed out?

Sun, 11/21/2010 - 20:40 | 745184 asianist
asianist's picture

All I'm saying is, make sure you wave your pitchforks at the right people. I doubt Google or Microsoft had anything to do with crashing the Irish economy.

Sun, 11/21/2010 - 21:28 | 745252 nmewn
nmewn's picture

Well...if your an "enviromentalist" (whatever the hell that is these days) there is no place to hide the carbon footprint of one single Google server farm.

Choices bitchez...LOL.

Sun, 11/21/2010 - 23:44 | 745480 i-dog
i-dog's picture

"How about giving back those tax dollars they steal when they get bailed out?"

ummm ... When did Google and Microsoft get bailout dollars? I missed that one!

Sun, 11/21/2010 - 18:28 | 745003 Chandos
Chandos's picture

Well...the IRA just got a new set of targets...

Sun, 11/21/2010 - 18:30 | 745005 mcarthur
mcarthur's picture

My Irish relatives are a bunch of piss tanks.  They do not deserve tax breaks.  Tax breaks should be exclusively for tight lipped Germans and Swiss that walk like they have a broom stick up their ass.  The Irish on the otherhand tend to use both sides of the sidewalk as they make their way from Sunday pub lunch to their freshly painted two bedroom stone house.  Definitely not deserved of a tax break.  Oh, and throw Google and all those other bastards into the mix. 

Sun, 11/21/2010 - 20:02 | 745147 Clapham Junction
Clapham Junction's picture

Ha, Mcarthur you Orange swine! Let me finish my Powers and and I'll be round to kick your arse!!!

Sun, 11/21/2010 - 20:47 | 745197 mcarthur
mcarthur's picture

I'm ready for you mate.  Just finished off my last Twinnings tea you swine.  Now just make your way to Saskatoon Saskatchewan and we'll have it out. 

Sun, 11/21/2010 - 18:34 | 745015 sgt_doom
sgt_doom's picture

Of course, the so-called "Irish miracle" was simply insurance companies offshoring their administrative jobs, beginning in the late '70s, lead by Prudential, to Ireland, then a bit later the exodus began with "profit shifting" to the E-Isle.

And just do a simple one-to-one comparison between those American (and Euro and Japanese) cities that became economically-distressed rust-belt cities, and those cities which burgeoned in India and China.

Back in 2007, there was an exact one-to-one correlation between the percentage of wage increase among 20-year-olds to 28-year-olds in China, and wage decrease among the same age cohort in the USA.

Nothing surprising here to anyone paying attention, but thanks for the post.

Sun, 11/21/2010 - 18:40 | 745025 mcarthur
mcarthur's picture

Surprise, surprise.  The last time I was in Ireand I made note of a rather large Bank of America administrative office in the middle of nowhere. 

Sun, 11/21/2010 - 18:43 | 745032 Budd Fox
Budd Fox's picture

But if ALL the Governments raise the taxes at reasonable levles, say around 28/30%, where this corporate thieves are going to hide??

I like Russia in this..you don't pay taxes, they send you assault troops.

Mon, 11/22/2010 - 03:46 | 745505 i-dog
i-dog's picture

"raise the taxes at reasonable levles, say around 28/30%"

You call 28-30% reasonable?!!! Places like Hong Kong can thrive with a maximum corporate tax rate of 17.5% -- personal tax rate is MUCH lower -- (AND no VAT, no tariffs, no sales taxes, no payroll tax, no solidarity tax, no municipal tax, no SS levies, no medicare levies, no..........) ... simply because the government stays the fuck out of providing services that the private sector can provide more cheaply and to a higher standard!!

Ireland would also have survived nicely on the 12.5% rate if they hadn't blown their savings investing in toxic American MBS/CDS frauds!!

All the western property bubbles are a direct result of the bankstas' 100% LTVs backed by SIV fraud schemes. The Asians are still driving their property prices up while putting in hard-earned cash at 60% LTVs (or less).

Mon, 11/22/2010 - 07:17 | 745880 Oh regional Indian
Oh regional Indian's picture


Hong kong does not count. They have no army/navy/air force, are under the chinese umbrella. Any other gubbermint worth it's salt spends pretty hefty chunks of their monies on "Defense". Plus, I wonder where HK gets it's power from.

But you get the point.



Mon, 11/22/2010 - 08:15 | 745901 i-dog
i-dog's picture

"But you get the point."

No, I don't, ORI. Hong Kong had both the British army and navy stationed there, to "protect" it from China, for nearly a century. The Brits didn't do that for free!

Further, Hong Kong doesn't go around threatening its neighbours with nuclear strikes (eg. against Pakistan, in the case of India) or invasions (eg. against Cuba, Philippines, Guatamala, Vietnam, Panama, Iraq, Afghanistan and dozens of others in the case of the US).

That's the beauty of a free market society ... you don't piss anyone off, so you don't end up having punch-ups with your neighbours. No trade wars, no currency wars, no cold wars, no hot wars, no religious wars, no wars against drugs, no wars against terror.

On top of that, Hong Kong welcomed millions of refugees who snuck in over the border from China -- between 1948 and the 1980s -- and provided them with housing, medical care and job opportunities -- all when the corporate tax rate was only 15% and personal income tax rate for an average office worker was less than 5%.

Sun, 11/21/2010 - 18:46 | 745038 DisparityFlux
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The austerity package terms fine print stipulated the end of all rainbows shall hence forth be in Germany and leprechauns are to be outsourced to an Indian firm.

Sun, 11/21/2010 - 18:48 | 745045 Cathartes Aura
Cathartes Aura's picture

the parasite/host relationship can be a delicate balancing act, but eventually there needs to be a purge, as the host loses vitality, life even. . . the parasite must be removed in order for the host to survive. . . recovery of vitality happens over time, but cannot begin until the parasite is disposed of.

the bankers & corporate parasites will jump to the next advantageous "zone" - who is left "holding the bill" can only be answered by the host.

Sun, 11/21/2010 - 18:58 | 745060 pitz
pitz's picture

So these big corporations will just run from country to country, extorting tax breaks and extorting governments to pledge their lands in exchange for billions of dollars of loans to lower tax rates? 

Sure sounds like one giant circle jerk that won't end well. 


Sun, 11/21/2010 - 19:06 | 745063 The Axe
The Axe's picture

This stuff the Tyler posts is terrific, and of course sad that we let companies like GOOG just rape us. Of course trading on this or any information is useless in a controlled, no volume, FED fueled market...just forget it...Thanksgiving week will see more meltups then you could imagine.

Sun, 11/21/2010 - 19:13 | 745071 pitz
pitz's picture

Yup, yet the sheeple think that Google is a miraculous company because they provide a search tool (which never was any better than Altavista had back in the late 1990s), allow people to download videos (something that definitely pre-dated Googles' existence), and have a mediocre web based email reading package.

Every time I look at Googles' financials, they never make any sense.  And I don't know anyone who actually clicks on Googles' ads either, so why the hell are advertisers paying them anything?  Or are they?? 

Wouldn't surprise me that, in a few years, its discovered that Google was just one giant scam, top to bottom. 

Sun, 11/21/2010 - 19:45 | 745126 Aristarchan
Aristarchan's picture

Google is one of the most intrusive companies in the world. They make their money selling data mined from their search engine users to advertisers and targeted marketing companies.

Sun, 11/21/2010 - 23:31 | 745457 Bearish News
Bearish News's picture

"which never was any better than Altavista had back in the late 1990s".

Altavista was an extremely simple algorithm, primarily based on a page's "meta-keywords", which are selected by the site owner/manager. This algo proved extremely easy to exploit, and Google revolutionized the search industry by introducing pagerank (looking at how many other reputable sites/pages link to the page in consideration for ranking).

I've talked to top search execs from Google, Yahoo, and MSN. Seen them speak at conferences. Trust me, Google is best of breed. They're at least 2-5 years ahead of the competition at this point, and the lead keeps getting bigger.

I don't know how this tax thing will play out, but I expect it will amount to nothing. After all, if they "bust" Google, they might have to bust everyone. That's a lot of special interest to fight.

Sun, 11/21/2010 - 19:07 | 745066 omi
omi's picture

How the F does this make any sense?

Sun, 11/21/2010 - 19:17 | 745075 buzzsaw99
buzzsaw99's picture

Yeah, and eric schmidt doesn't get groped at the airport either.

Nobody touches the schmidt lucky charms.

It's not illegal because the corporations write the tax code.

Sun, 11/21/2010 - 20:08 | 745153 G-R-U-N-T
G-R-U-N-T's picture

Scanning seems to be the in thing perhaps groping is an up and comer?


Sun, 11/21/2010 - 21:34 | 745259 nmewn
nmewn's picture

Don't Touch My Junk! ®

Sun, 11/21/2010 - 19:40 | 745119 IrrationalMan
IrrationalMan's picture

so this is why the futures gapped up 7 point...

Sun, 11/21/2010 - 21:38 | 745260 Ludwig Van
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99er -- Just want to say thank you for this and all the charts you post on ZeroHedge. I never let one go by; each is uncannily appropriate. Keep up the good work.

Sun, 11/21/2010 - 22:21 | 745310 chopper read
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