I agree with you. Now I do see the merit of looking at the two issues facing this country individually, but saying the banking bail out is not having an effect on current expenditure is indeed insulting to the public.
You only need to look at the Irish 10 year bond yield everytime there was an announcement about another increase in the amount of money pumped into the banking system, to notice that it is having a direct effect.
The other huge assumption is that the money pumped into the banks will ever be returned. And even if it is returned, in full or with profits, what is the cost of the precendence set for future crisis?