tag:blogger.com,1999:blog-3063599363545760991.post4851269829888952354..comments2024-02-23T23:09:14.503-08:00Comments on Bondwatch: The Dirty Dozen w/e Dec 18th 2011Diarmuid O'Flynnhttp://www.blogger.com/profile/02014427650676137740noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3063599363545760991.post-79399582885810711442012-01-13T07:13:34.193-08:002012-01-13T07:13:34.193-08:00Apologies Fergus for not getting back to you soone...Apologies Fergus for not getting back to you sooner, all this is done part-time.<br /><br />In answer to your query, at NO stage will I address the difference between equity capital, bonds and deposits; this campaign is about the difference between right and wrong, and it IS that fundamental. <br /><br />In a series of for-profit commercial ventures between consenting adults in private financial institution, the original bank bondholders took a gamble that failed; for that failure, for their poor judgement, they should have paid. Instead, in a perversion of the normal course of capitalism, the ECB blackmailed a weak government (ours) into paying those failed private bonds, in full and with double interest (the 'coupon' to the original bondholders, the interest on the new loans we'll have to take out). That action is wrong, all wrong; we are right to protest.<br /><br />Beyond that there are all kinds of subsidary arguments, including of course the legitimacy of the original blanket bank guarantee, given under false circumstances; there is also the primacy argument, who could gets paid what first in a haircut scenario, under which would comes your question. <br /><br />I'm not concerned with any of that. For me, it's just these damned bonds, and the fact that without ever even being asked, we have been saddled with this burden.Diarmuid O'Flynnhttps://www.blogger.com/profile/02014427650676137740noreply@blogger.comtag:blogger.com,1999:blog-3063599363545760991.post-46700591584063178082011-12-19T23:16:47.388-08:002011-12-19T23:16:47.388-08:00Forgive me if I missed it, but...
At what stage, ...Forgive me if I missed it, but...<br /><br />At what stage, are you going to address the difference between equity capital, bonds and deposits ?<br /><br />Specifically, why should a deposit of €100 million be protected, but a bond should be "burned" ?Fergus O'Rourkehttps://www.blogger.com/profile/14855775987063530713noreply@blogger.com