Friday, November 26, 2010

The Battle in Ireland; Will They Ditch the Euro or Just the Global Banksters?

Putting additional pressure on Ireland, bankster enforcer, Standard & Poor's, said it was lowering Anglo Irish Bank six notches to a junk-bond B grade. It also cut the ratings on Bank of Ireland one notch to BBB+, and downgraded both Allied Irish Banks and Irish Life & Permanent one notch to BBB.

The banks deserve these downgrades and more, but so does almost every global bank. Where are the downgrades for these? The selective downgrades are providing very clear evidence of who calls the tune for the rating agencies and it isn't Judge Judy.

Meanwhile, AP reports:
Prime Minister Brian Cowen saw his own hold on power slip another notch, as his ruling Fianna Fail party lost a special election for a long-empty seat in parliament. The winner vowed to force Cowen from office before he can pass an emergency 2011 budget being demanded as part of the international rescue...Sinn Fein candidate Pearse Doherty said his dominant performance in a six-candidate field showed that people want to elect a new government that will force foreign banks, not Irish taxpayers, to bear the cost of Ireland's enormous financial crisis.
Voters "are telling Brian Cowen to get out of office. It's not clear that this budget will pass. It is completely unfair and unjust to attack the weakest and most vulnerable in this society," Doherty said. "The government should suspend the budget, call a general election, and let the people have their say." .
It's not clear what economic understanding the opponents of Brian Cowen have, but one thing is clear, if they gain control the banksters will be losers.

If that happens, the revolts will intensify in PIIG land. Up until now the banksters have been the only Pigs of consequence, but that may be changing. Rest assured, both sides are going to bring their A team to this game.

1 comment:

  1. Despite Wilbur Ross' bragging, Irish Bank EBS isn't in The Carlyle family, not yet.

    I wonder how the Irish crisis will impact any deal. Carlyle & Ross took $2.3 billion in FDIC cash for BankUnited. Will they milk the Irish government or their IMF friends for billions in subsidies?