Is anyone else sick of the way we're being told that the banking crisis is not a serious problem compared to the budget deficit?
If we tackle the budget deficit as expected we will probably have a further borrowing requirement from 2011 onwards of €40bn before we stabilise the deficit.
This might potentially leave us with a national debt just under 100% of GDP. The banking crisis cost will see this figure jump to 130%/140%.
Yes, we have to address the budget defict, but talk of the banking crisis being manageable in this context is absurd.
Say the situation has somewhat stabilised by 2015 we might have €200bn of national debt costing €12bn p.a. in interest alone (at 6%).
It's very conceivable that if we hadn't incurred this cost (i.e. if there had been no banking crisis) our debt might be €150bn costing us €6bn p.a. in interest (4% interest because we'd be so much less likely to default).
I've put this in LOS because it's letting off steam about again being treated like idiots, don't want any debate on the merits of cutting deficits or bailing out banks.
If we tackle the budget deficit as expected we will probably have a further borrowing requirement from 2011 onwards of €40bn before we stabilise the deficit.
This might potentially leave us with a national debt just under 100% of GDP. The banking crisis cost will see this figure jump to 130%/140%.
Yes, we have to address the budget defict, but talk of the banking crisis being manageable in this context is absurd.
Say the situation has somewhat stabilised by 2015 we might have €200bn of national debt costing €12bn p.a. in interest alone (at 6%).
It's very conceivable that if we hadn't incurred this cost (i.e. if there had been no banking crisis) our debt might be €150bn costing us €6bn p.a. in interest (4% interest because we'd be so much less likely to default).
I've put this in LOS because it's letting off steam about again being treated like idiots, don't want any debate on the merits of cutting deficits or bailing out banks.