swaps

Moody's Luck of the Irish Has Run Out

Right, the wrong Moody's rating lulled me into AIB and I am down 50 percent still even with the bounce back. I know. Use stop loss.

Doesn't the astute Buffet own Moody's too? If so, then Moody's cannot be allowed to fail. Buffet is too big to not be catered to by the lap dogs of international banking elites.

Anglo Irish Bank Even Worse Off Than its Peers

It's amazing that banks that can leverage their base deposits 10 to 1 can get into trouble. They get $! Million in and then loan out $10 million with a blended rate of say 10 percent, ranging from credit cards at 16 percent to commercial or car loans at 7 percent, which is $1 million a year income - or doubling the base deposit in a year.

And still they get in trouble.

I guess I understand how banks work but do not understand how bankers work.

Ireland's Ailing Banking Sector

I have a few shares of AIB bought earlier this year after it tanked. Several different analysts in different media said it was good buy and was not involved in subprime. Of course, it tanked even more in recent months. It is barely breaking even. So I should do more due diligence than rely on several apparently unrelated experts who agree. And not be sentimental about ancestral Ireland, which now has a half million African and Mideast foreigners there as resident workers. But then the globalists hate individuality.

I bought a few shares of IRL around two years ago, and then added some more earlier this year. So this is further proof that international diversity has to be more carefully thought out and executed.

I will continue to hold both and will add to both in the future to cost average. But no more money goes in right away.

One thing I found interesting in New Ireland's annual report was that it did not list major shareholders. It simply said all shares were held by Cede, the clearing house trust that holds all shares presumably, which is a scary thought. We really do not seem to own our shares. We have a claim on them. Sometimes I wonder what if our benificent government would resolve some future economic calamity by turning everyone's shares held in CEDE to some foreign creditor with claims on the nation and its inhabitants. But that is off topic.