“Damn, it Feels Good to be a Banksta”: Irish banks use guarantee for ECB-backed pyramid scheme

Peter Gibbons chillin' like a villain, Office Space

"Peter Gibbons" chillin' like a villain ("Office Space" 1999)

From ZeroHedge – Paddy Meet Ponzi; Irish Banks Lend Billions To Each Other For Use As ECB Collateral:

When about six months ago we noted that the European ponzi is in full force, courtesy of banks using any toxic assets as collateral to the ECB, little did we know just to what heights this scheme would reach. Today we get our answer. The Irish Times writes that Irish Banks are issuing billions in bonds to themselves “under the Government guarantee to borrow cheaply from the European Central Bank and to avoid drawing more heavily on emergency lending from the Irish Central Bank. Four banks issued bonds worth €17 billion to themselves last month under the Government’s extended guarantee, the Eligible Liabilities Guarantee, to use as collateral to borrow from the ECB. “What you have here is micro-quantitative easing, or money printing,” said Cathal O’Leary, head of fixed-income sales at NCB Stockbrokers. “The banks are issuing unsecured loans to themselves.” And since this is happening in Ireland, it is most certainly happening everywhere in Europe. And yes – this is the pinnacle of a pyramid scheme…

Read more.

This entry was posted in Accountability, Bank Run, Bankers' Bailout, Budget, Debt Default/Restructuring, ECB/IMF, Economy, EU, Euro / Sovereign Money, Geopolitics, ireland and tagged , , , , , . Bookmark the permalink.

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