Taxpayers vs. Bondholders
What happened in Ireland was nothing less than the blasphemous rape of a nation in order to reward billionaire bondholders who invested recklessly, conducted little oversight, and then went crying to Geithner and Trichet when it didn’t work out. In other words, it was their own damn fault, and they should have lost their collective asses when the banks failed.
This is the heart of the bailout battle in Ireland and everywhere else: taxpayers vs. bank bondholders. The difference in Ireland is the debate is front page news. While Irish citizens are the ones who must repay the loans, they aren’t the only ones who got screwed. Call it global taxpayer theft with heavy concentration in Europe and the U.S., as bailout funds were only made available on Geithner’s explicit condition that bondholders not be touched.
Remember that U.S. taxpayers fund approximately 20% of the IMF’s budget. So when you read below about Bill Gates and his $34 million in Irish bank bonds that were bailed out at 100 cents on the dollar by the IMF and EU, take comfort in the knowledge that some ofyour taxpayer dollars helped to rescue poor Mr. Gates from certain financial doom.