I have read many of your comments on political reform here at IE. On the whole, there is always something useful to be gleaned in reading them. Thanks for the effort of putting those thoughts on record, so that we can access them here.

As for political interference, (I don’t know why this is) for me the outstanding political interference of all in the last decade was former Taoiseach Ahern’s appointment of Sean Fitzpatrick as ‘head of risk management’ for the Dublin Docklands Development Authority in 2002. Yeah, that year was an election year also. One can only wonder what old account that was settling up for. The position of risk manager was only a disguise of course. What it did was to allow Anglo Irish bank to reach out to a considerable base of customers in need of credit at a time of major construction activity expansion in the capital city of Dublin. All of those debts created by Anglo, since 2002, have to be serviced, re-paid, accounted undergo a resolution process and otherwise dealt with (at huge risk to the taxpayer via NAMA). Okay, so a number of hotels were built on foot of tax exemption schemes introduced by government. Okay, the hotel room market in Ireland was regulated into severe distress and chaos, rather than the opposite. But I would argue, that in sheer level of debt added to the Irish citizenry - the introduction of Sean Fitzpatrick to the board of the DDDA in 2002, has resulted in much greater amounts, than the hotel tax exception schemes ever did. That is my only point. We find it easy to blame government tax relief policy for so many of our woes, since government rubber stamped them. But think about this. A well known Silicon Valley entrepreneur who moved into the Venture Capital industry a while ago, described his new occupation as that of providing social introductions and connections - not so much capital - as capital was taken care of easily, in the period of the credit bubble. Venture capitalists had to learn to offer something proprietary which wasn’t credit or financial investment based. You have to look at former Taoiseach Ahern’s manipulation of important board level recruitment in the same fashion. Believe me people, I know the propery world from the inside out. The FF governments put up those tax incentive schemes on purpose, to throw you people onto the wrong trail. Think about what Michael Somers of the NTMA testified to a Dail Committee in relation to lodging deposits at Anglo Irish Bank. Somers was reluctant to do so, as early as 2007, but was coming under pressure. These are the more important factors in my humble opinion - forget about the tax incentives - they are interesting from an academic market economist’s study point of view. But not really interesting in solving Ireland’s mess. BOH.

So there is a huge problem of political interference which will prevent organic healing - the system is going to be told to run another sprint on its knackered legs instead of being left to heal for the marathon ahead. How do we stop this interference? Palming the whole thing off on faceless foreign bureaucrats has its attractions…

At least the criticism from European Committee level of minister Lenehan’s rosy growth projections beyond 2010, was a welcome rebuttal to the order of business here in Ireland, wouldn’t you say? BOH.

The Central Bank and regulator are not permitted to comment on government policy. They are not allowed to say tax breaks are bad and causing distortions.

In the US, the SEC was consistently underfunded and restricted as a result of congressional action. It could not have regulated Lehman’s and the other investment bank holding companies even if it had wanted to (which is in doubt).

Not least of the problems is the political interference in the form of “we can’t allow x to collapse or go bust”.

So there is a huge problem of political interference which will prevent organic healing - the system is going to be told to run another sprint on its knackered legs instead of being left to heal for the marathon ahead. How do we stop this interference? Palming the whole thing off on faceless foreign bureaucrats has its attractions…

im not getting into a slagging match here, its rather pointless i feel. Its clear i can’t convince you of a basic principle of Irish (and most other advanced economies) banking setup in regard to this. Please feel free to think that depositors rank higher than senior bonholders in the event of liquidation. If this is your view, then we don’t actually need a new resolution regime put in place to effect the orderly wind up of a failed bank, because why else would we need one? I’ll also note that the challenge i threw down, “does anyone else agree with Hugh”, has garnered precisely ZERO responses in your favour.

In principle, I don’t disagree. I’m just seeking to be more pragmatic in terms of resource and effort given the hole we’re in, what’s needed to get us out and to prevent a repetition. As I’ve pointed out previously, most economic and fiscal policy is determined by a small coterie comprising the MoF, special advisers and senior DoF officials. Breaking the power of the whips and making the process subject to proper scrutiny and amendment by Oireachtas committees adequately resourced with the necessary economic expertise would be a big step forward.

And yes, I know that the more open system in the US didn’t prevent Wall St. driving a coach and four through any policy or regulatory constraints, but the system is presenting some evidence of being able to heal itself. By looking back we run the risk of descending into a slugfest of recrimination and defensiveness.

We need change in the structure and process of governance, but I’m not convinced that the political classes understand what’s required or have the gumption to secure the people’s consent to implement it.

The rich will consider that they are safe. We shall see. Dual identity might be useful. I hear G W Bush bought up a large chunk of Paraguay. Just in case.

Even “success” by a world government will mean lots of police actions. Korea was a police action.

“@ Greg - “Still, you are “Compliance Ireland”. You know what you’re talking about”. You might want to see my background on my website re your pearl of wisdom.”

No offence old boy but I did check your “background” on “your” “website”.

I wouldn’t have asked the question otherwise.

I’ll make it really simple for you.

“If a “hedge fund” is domiciled in Ireland and selling (some convoluted retail) product to 300 million people throughout Europe is the Irish regulator responsible to the consumer for the veracity of claims made by the salesmen/women of that product.”

That’s about as simple as I can put it.

But then I don’t have a “website”.

Oh, and I don’t have any legal qualifications at all.

You do. That’s why I asked.

“Conspiracy” is reserved for those who do not know their place, Greg.”

Let us hope that the Judiciary has not yet been “told its place”.

Time is running out on this nonsense. And Article 39 or otherwise someone outside this State is pulling the strings.

“This is how under-paid public servants become friendly with those who have the gold and make the rules.”

Then it is better that the under-paid public servants be unemployed.

They might discover freedom and not their servitude to self interest and greed.

Do they know they are vassals?

“The Sunday Times has unearthed communications between Anglo and the regulator which show that intimate details of the bank proposal to regularise Quinn’s holding were shared with the authorities.”

Houston (or in this case the Constitution of the Irish Republic) “we’ve had a problem here”.

Swigert: ‘Okay, Houston, we’ve had a problem here.’

Duke: ‘This is Houston. Say again please.’

Lovell: ‘Houston, we’ve had a problem. We’ve had a main B bus undervolt.’

Authorities “sharing” “intimate details” to hinder price discovery”.

Again, and being very careful with language. How much damage was done to pensioners and pension funds (and Unit Trusts and UCITS) by this alleged intimate sharing?

Exactly how much financial damage was done if the alleged intimate sharing took place? €10bn / €20bn / €30bn?

Yes indeed we’ve had a problem here.

And it hasn’t gone away you know.

Treason never prospers for if it doth, none dare call it treason.

This is how under-paid public servants become friendly with those who have the gold and make the rules. Lowly driminal types get the Circuit court or if they are violent, the SCC. The rich and powerful emasculated tribunals “with the full powers of the High Court” that cannot imprison or find guilt and that spread spondulicks far and wide.

The Gardai clearly could not be trusted to do the job? But it still takes BHO and the US press to push the arrest button.

Yes, yes, yes and YES!

The auditors also have a paper trail for the gardai to pursue. They are meant to test for breaches of company law and the truth of the balance sheet. True, they always hide behind the watchdog and not a blood hound case over 100 years ago. But Arthur Andersen, the most aggressive of the auditors, had an injudicious email or two. If the Gardai continue their investigations, what will be found? Maybe they also know something about the Irish Crown Regalia?

This may help to assuage the feelings of those who have lost income as a result of the shenanigans. A steady diet of heads meeting cold steel may prevent Regicide……

“As far back as March 31, 2008, Anglo told the regulator that the share placing was to ensure “the market price of the company’s shares will not be destabilised”.”

Again one must be careful with language here. As Tammy Wynette said “Sometimes it’s hard to be a Woman”.

http://www.youtube.com/watch?v=tc5iiDKSsYM

Well sometimes it’s hard to be a peasant serf.

Could some of my betters here explain exactly why (if the Sunday Times allegation is true) the regulator saw fit to hinder price discovery on Anglo Irish Bank shares?

Eoin?

To help the bondholders (the insiders)? Give them enough time to get out of Dodge?

If the Sunday Times allegation is true, how many pensioners lost their retirement as a result of the failure of the regulator to allow price discovery ?

And if any of those pensioners were to meet Seanie Fitz or Paddy (the Regulator) Neary in the supermarket I hope Tesco/Dunnes/Lidl aren’t playing this.

“I Fall To Pieces Each Time I See You Again”

http://www.youtube.com/watch?v=iuZTk1hdpMs&feature=PlayList&p=109481B1EB118F9E&playnext=1&playnext_from=PL&index=1

“The Maple Project was designed to reduce businessman Sean Quinn’s financial interest in the bank. Quinn held 28% of Anglo Irish Bank through instruments known as contracts for difference.”

Tell me this Pat. Is it just my peasant serf understanding of English, or could one substitute the word “Conspiracy” for the word “Project”.

Sounds the same to me.

But then I’m just an Irish muck savage peasant serf.

Them that be makin de language knows I am thick.

“Just days before the bank lent €500m to 10 of its most highly-regarded clients to buy almost one-third of the stake controlled by Quinn, David Drumm, Anglo’s chief executive, sent an email to a colleague saying that the regulator was “squared”.”

Were they not also the most highly indebted?

“Some detail of AngloQuinn bank”

Indeed. Who is protecting whom? And why?

One thing seems certain.

The protection racket that is ongoing is going to cost the Citizen/Taxpayer north of €50bn.

Again I recommend you to Article 39 of the Constitution of Ireland.

Well you have to hand it to him. Only the King of Offaly could get Blind Biddy a USA medical card.

Sometimes the power of my king leaves me in awe.

At other times I am just shocked.

What a generous King we have.

And one with such knowledge of money.

We are all safe under his reign.

“A colleague of Drumm’s, Matt Moran, the chief financial officer, also sent an email saying: “Project Maple — regulator conversation done and went fine.””

One must be careful what one says here.

If one accepts the efficacy of the alleged email, is one permitted to ask oneself the question?

“Did the regulator act with or without the knowledge of his Minister?”

Or. Did the regulator (at the time separate from the Central Bank) inform the Governor of the Central Bank of his (alleged, the regulators) approval?

These are the type of questions that haunt dreams.

Just had text from seven_of_nine - advising THE Offaly_Man in his hour of need - knew he looked somwhat chirpy today - she is back tomro after the vote, at which time Blind Biddy is flying out to get the implant on the green card ………

“We own eoin.”

No don’t get me excited.

Could we use him to blow hot air at windmills?

That ought to save us from the Green Horde who want to destroy my right to have a coal fired power station in Ireland.

Do the Chinese “own” the Green movement?

“Spose it’ll be just meself and Blind Biddy again for the Rugby - she is reading up on Lenin and Ayn_een Rand simultaneously so I’m prepared for the worst …”

Concern yourself not.

Seven of Nine was as disappointed with the rugby today as I am sure Blind Biddy was.

Seven of Nine sends her regards to Blind Biddy and is delighted that you finally persuaded the blind one to accept the Borg “Eye Socket Implant”. We hope she enjoyed the seeing rugby.

Now if only she that big clock in front of her.

Tick Tock Tick Tock.

How does one say that in Greek? Or Latvian. Or Spanish. Or Austrian.

It’s all just Californication to me.

Maybe the replicator can print me up some of them Zimbabwean Dollars or some of them juicy NAMA bonds.

Here’s an idea. The health service (apparently) doesn’t have enough money.

Simple. Print up some of them NHealthMA bonds.

Apparently it’s not National Debt.

S&P, Moody’s & Fitch will ignore it completely.

€20bn NHMA bonds out to sort the health service out.

I own the bank. We own the bank. We own eoin. The banks own us. We are all serfs of the banks, as is Eoin.

There is nothing ‘left’ - there is nothing ‘right’ - there is nothing ‘up’ - there is nothing ‘down’ - we must be in the ‘black_hole’ - is this ‘heaven’ - is this ‘hell’ - is this ‘the end’ - or is it ‘the beginning’ - did someone paint the blue pill red - why is seven_of_nine not answering the phone - tick tock tick tock tick tock tock tick tock tick tock tick WOW WOW WOW …… we are ‘back in time’ back in time …….. to zero.

As predicted, documents exist! State sanctioned law breaking…….. brings me back to the DIRT whitewash!

DOD
Quite a find! Sadly, it is based on logic and not fantasy and there will be little opportunity for Ireland Inc to profit from such a plan.

“@Eoin.
Goodness me, an apparently endless supply of insult and bluster.”

Welcome to the Bond. Eoin Bond… fan club.

Consider yourself lucky that he hasn’t accused you of being insane, yet.

“But I don’t think that Bond Eoin Bond will impress me as a source.”

Funny thing that, I don’t trust him as a source either .Had to pull him up a number of times. A bit selective don’t you know.

Still, water off a duck’s back though.

He works for a bank.

“This inability to focus on TIME is doin me head in!”

Tick Tock Tick Tock Tick Tock.

That is rather the entire point of talk of regulation and “this will never happen again, because we say so” from the same people who gave you “this is not happening, the banks are solvent, because we say so”.

Any propaganda will do, the moral failure of bish hops, an indiscretion of an overpaid kicker of a pig’s bladder, two very odd children from Lucan having “lost” their record contract and having “found” a new one.

With all the news it’s difficult to know what day of the week it is never mind what time of day.

Heaven preserve us from actually knowing what time it is and how little is left before the State commits €100bn to a patently insolvent financial architecture.

Tick Tock.

It is of course not only little Ireland.

That’s what I mean by exogenous event.

Tick Tock.