Categories Uncategorized Justin O’Brien Interviews Patrick Honohan Post author By Philip Lane Post date August 8, 2014 12 Comments on Justin O’Brien Interviews Patrick Honohan here. Related ← NYT: The Muddled Road to Overhauling Corporate Taxes → Patricia Clavin on the origins of international economic institutions 12 replies on “Justin O’Brien Interviews Patrick Honohan” A Preliminary Report on the Source of Ireland’s Banking Crisis ” by Klaus Regling and Max Watson-page 6: “This was a plain vanilla property bubble,compounded by exceptional concentrations of lending to property-and notably commercial property” When the commercial property bubble burst it bankrupted the entire Irish banking sector,which in turn bankrupted the sovereign. Reckless Irish banks lent billions against the feudal leases i.e. upward-only rent reviews tied to long leases,not aganist the properties themselves ,and created the greatest commercial property bubble in the history of mankind. The reason Ireland had these ruinous leases was because the sovereign signed them. The greatest bank and property crash in the history of mankind started with one house-Leinster House. http://www.per.gov.ie/strengthening-civil-service-accountability-and-performance-submissions-received/ In the above link to strengthening civil service accountability-take a look at John Dowds & Allen Morgan’s submission. They make the case that the State is frequently ripped off in property transactions and no one is ever held to account. Read Colm Keena’s 2001 book “Haughey’s Millions-Chairlie’s Money Trial” Mr Haughey dominated Irish political life from the sixties to the nineties. He had always lived beyond his visible means. From 1969 on, he lived like a prince in Kinsealy,at times on nothing more than a backbench TD’s salary. Colm Keena traces the origins of Mr Haughey’s lifestyle back to the 1950′s and to his early life as a partner in Haughey Boland & Co. He follows his early developing relationship relationship with Des Traynor and his developing relationships with property developers. In this book you will discover why Ireland had the greatest commercial property bubble in the history of mankind. Most of Mr Haughey’s bagmen are sovereign landlords. It made them wealthy beyond their wildest dreams and it copper fastened the most draconian commercial property lease law in the world on all Irish commercial tenants. During the credit bubble years,reckless Irish banks lent billions against these feudal leases,not against the properties themselves and created the greatest commercial property bubble in the history of mankind. Ernie Don’t watch that interview!! Prof H positively gushes how we shafted the public service, not once but twice. fyi Argentina: Debt Default is a Solution, Not a Problem Posted on August 8, 2014 by Lambert Strether By John Weeks. Originally published at Triple Crisis Background Unless you just returned from holiday in some ultra-remote region lacking newspapers, television or internet access (is there such a place?), you are aware that the government of Argentina defaulted on its external debt on Wednesday. A New York federal court provided the immediate cause of the default with a ruling that rendered illegal an agreement reached between the Argentine government and creditors holding over 90% of the country’s external debt. The principal litigant bringing the case against the government holds less than US$2 billion of the Argentine debt, which by comparison makes a tail wagging a dog seem a credible anatomical interaction. MNL Capital, never lent a cent to the Argentine government (nor to any other). It acquired its one-billion-plus Argentine bonds on the re-sale market, purchasing them at far below face value. Depending on your source of (mis)information, you will think that this default is 1) the result of an feckless, spend-thrift government failing to accept responsibility for its actions (argued for example, in Forbes), 2) the harbinger of deep economic trouble for the Argentines; and/or 3) the consequence of the predatory evil of vulture hedge funds. Taking these three in order, they are 1) false, 2) probably false, and 3) true but not terribly important. http://www.nakedcapitalism.com/2014/08/debt-default-solution-problem.html Must be the judge who delared fracking legal in Roscommon! @ All FYI http://www.newyorker.com/business/currency/argentinas-rational-default Polonius: Neither a borrower nor a lender be, For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry. Hamlet Act 1, scene 3, 75–77 @DOCM http://vineyardsaker.blogspot.de/2014/08/you-wanna-be-uncle-sams-bitch-pay-price.html @all Mad Oul Jozie down_the_road has joined the “No Fuk**n Frackin in Roscommon’ campaign. The writ of thatparticular NY judge doesn’t run in universal Roscommon. @all contd. The “No Fuk**n Frackin in Fermanagh” campaign has lent its support. @ Ernie Ball I hope you are still persevering with your Indo. Great news for you in today’s edition. The public services pay cuts are to be reversed now that the emergency is over. Start visiting the car showrooms. There’s this exquisite Bentley I’ve got my eye on… You do have to read the Indo if you want to know what bêtises (in the Flaubertian sense) people will be parroting at you in a given month. @ Ernie The Indo doesn’t do betism, it is a family newspaper. If it’s Flaubert you want can I recommend the Sun. with apologies to the ‘covens’ at the CBI & the IFSC: John Bruton: ‘Populations are blaming austerity on bankers like people in the 17th century blamed witches’ – ‘We must default on health and welfare’ http://www.independent.ie/irish-news/politics/john-bruton-populations-are-blaming-austerity-on-bankers-like-people-in-the-17th-century-blamed-witches-30495871.html Oh dear! Dear John … Comments are closed.