Comments on: An Irish Bond Bomb http://www.dailyreckoning.com.au/an-irish-bond-bomb/2009/02/19/ An independent perspective on the Australian and global investment markets Tue, 16 Mar 2010 15:46:40 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Joe http://www.dailyreckoning.com.au/an-irish-bond-bomb/2009/02/19/comment-page-1/#comment-66826 Joe Sun, 22 Feb 2009 01:28:55 +0000 http://www.dailyreckoning.com.au/?p=5154#comment-66826 Revolutions have been started by less inequity than there is in our current societies. That private banks can be bailed out of their mistakes, yet other non bank private companies can not (simply because we can not bail out everyone), demonstrates this aptly. That our money is now preventing bankers from seeing their corporations fold, and is additionally required to be paid to these said bankers to fund their bonuses. If there was any equity in our World these men would be unemployed and the system they operated to its' own destruction knocked down to the foundations and rebuilt into a new sustainable and equitable model. It amazes me that politicians and financiers see that the system was fundamentally broken, and yet they attempt to bankrupt us all to maintain a flawed model. Capitalism is supposed to weed out the weak, and the failed, and reward the strong and successful. Apparently these days it does not. If my bank folds, that means they have the rights on my asset, my house, and as such, I would be in a position to re-negotiate its' value and offer a fair value price on its' debt. This happens with every other failing organisation as assets and liabilities square up in a resetting of the accounts. Imagine if this had been done across our economies, it would have rightly wiped the banks out for being insolvent, and reset all those inflated debts realigning back to a realistic value of the assets the debt was secured against. OK there would have been absolute carnage for a year or two, but, surely this is better than have a decade or more of reallignment and unsustainable tax liabilities, as we attempt to maintain a broken model. If governments default on their liabilities in international markets, it will be because they have punted the risk upstairs by not drawing the line at private commerce. The recession the World is seeing now is because banks have no money to lend. Nations have no money to buy goods from others. States have no money to pay for the services they need to provide to their citizens. All we have now is debt and more debt being loaded onto assets desperately over-priced because we let the fundamentals of our economy inflate these values by increasing the supply of unreal money almost without restraint. My bank has made enough money over my working life from my earnings, and yet now they are entitled to my tax payments too. It is difficult to see how our bad economic management can be reset without much higher levels of inflation to realign earnings with debt. And that I feel is the inevitable consequence around the globe. If governments default then they will be desperate to inflate away their liabilities. Revolutions have been started by less inequity than there is in our current societies. That private banks can be bailed out of their mistakes, yet other non bank private companies can not (simply because we can not bail out everyone), demonstrates this aptly.
That our money is now preventing bankers from seeing their corporations fold, and is additionally required to be paid to these said bankers to fund their bonuses. If there was any equity in our World these men would be unemployed and the system they operated to its' own destruction knocked down to the foundations and rebuilt into a new sustainable and equitable model.
It amazes me that politicians and financiers see that the system was fundamentally broken, and yet they attempt to bankrupt us all to maintain a flawed model.
Capitalism is supposed to weed out the weak, and the failed, and reward the strong and successful. Apparently these days it does not.
If my bank folds, that means they have the rights on my asset, my house, and as such, I would be in a position to re-negotiate its' value and offer a fair value price on its' debt. This happens with every other failing organisation as assets and liabilities square up in a resetting of the accounts.
Imagine if this had been done across our economies, it would have rightly wiped the banks out for being insolvent, and reset all those inflated debts realigning back to a realistic value of the assets the debt was secured against.
OK there would have been absolute carnage for a year or two, but, surely this is better than have a decade or more of reallignment and unsustainable tax liabilities, as we attempt to maintain a broken model.
If governments default on their liabilities in international markets, it will be because they have punted the risk upstairs by not drawing the line at private commerce.
The recession the World is seeing now is because banks have no money to lend. Nations have no money to buy goods from others. States have no money to pay for the services they need to provide to their citizens. All we have now is debt and more debt being loaded onto assets desperately over-priced because we let the fundamentals of our economy inflate these values by increasing the supply of unreal money almost without restraint.
My bank has made enough money over my working life from my earnings, and yet now they are entitled to my tax payments too.
It is difficult to see how our bad economic management can be reset without much higher levels of inflation to realign earnings with debt. And that I feel is the inevitable consequence around the globe. If governments default then they will be desperate to inflate away their liabilities.

]]> By: Peter http://www.dailyreckoning.com.au/an-irish-bond-bomb/2009/02/19/comment-page-1/#comment-66543 Peter Thu, 19 Feb 2009 11:33:59 +0000 http://www.dailyreckoning.com.au/?p=5154#comment-66543 Hi Dan, Is that the ghost of Gono making you type a "b" instead of a "m" (...announcing a full year net profit of $1.65 billion. That was a 360% increase over the previous year's figure of $360 billion.) I suppose its good practice what with the governments around the world about to put the printing presses into overdrive. Hi Dan,

Is that the ghost of Gono making you type a "b" instead of a "m" (...announcing a full year net profit of $1.65 billion. That was a 360% increase over the previous year's figure of $360 billion.) I suppose its good practice what with the governments around the world about to put the printing presses into overdrive.

]]> By: Rosie http://www.dailyreckoning.com.au/an-irish-bond-bomb/2009/02/19/comment-page-1/#comment-66526 Rosie Thu, 19 Feb 2009 05:44:05 +0000 http://www.dailyreckoning.com.au/?p=5154#comment-66526 "$1.65 billion... was a 360% increase over the previous year's figure of $360 billion." That doesn't compute. "$1.65 billion... was a 360% increase over the previous year's figure of $360 billion."

That doesn't compute.

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