We are being softened up. We are being softened up for the day when the junior bondholders of Anglo, on whose behalf the Guarantee was made, for the day they get paid.
Kenny and co have said they cant see any circumstances where this will happen. Well, here they are. The liquidiation of IBRC, the shell into which the putridity of Anglo was placed, that proceeds apace. And there may be a surplus, to allow the junior bondvultures to be paid.
These are not credit unions and widows and orphan pension funds. They are, in all probability, vulture funds and risk capital specialists, people who take a punt on distressed debt being repaid, people who bought these bonds for a few cents on the euro and who now will get paid in full. And the legal probability is that this will happen here.
The government can and should stop this. Instead of handwriging “sure that might never happen, god thatd be awful, I wouldnt see that at al:, legislation is the way forward. Whats that Madam AG? Unconstitutional you say? Well, first, that is your opinion, not that of the Supreme Court, so let them decide via the referral mechanism. Second, if it is, does anyone think that a constitutional amendment to burn bondholders would be defeated? We have amendments right and left, why not one for this?
The day will come when this happens. A surplus will be declared and paid out. The mechanically recovered meat scrapings off the bones of Anglo will be fed to the vultures. A government will declare that this is good, look at the size of the bones, sure that shows how the economy is prospering, anyhow they were Fianna Fail bones, those arent vultures really just chickens, too much meat is bad for you anyhow and so on. A mostly compliant media will solemnly report “the liquidation of Anglo has yielded a profit”, neglecting the sunk cost of €34b poured into the shell. A swarm of shillbots will post on Irisheconomy.ie and Politics.ie about how this is a good thing. A goldfish memory afflicted populace will credulously believe, because yer man on the telly nd that fella on the radio said, that the taxpayer made a profit from Anglo.
Any political party that stands over payment of a single cent to these creditors is one for whom no sentient voter should ever vote again. Paying these would be immoral. Simple as.
Anglo junior bonds may net €270m | Irish Examiner.