My bit in italics. The use of the term "some banks" suggests that we have hundreds of these and we can spare a few. In fact his proposal would certainly see the demise of the Big Two as well as most other domestic entities. Secondly there is no way this would be an orderly process stretching over a year.This (letting the system collapse and snapping up all the land at firesale prices to be set to public use) will mean the orderly winding down of some banks over the course of the next year.
This is actually flying in the face of reality. Despite our huge problems (and in relative terms much worse than most) Ireland is still reasonably able to raise large funds internationally, and it needs to. We still have a AA rating and our spreads have fallen significantly from the panic days of Anglo nationalisation. Whatever the other merits of McWilliams "let them all collapse" proposal it is very difficult to see it improve our credit rating, as he implies."When investors see that we are being ruled by financial fanatics, they stay miles away because they know investing is pointless."
It is not NAMA I would worry about, at least we are getting something for our 60b and there is an end in sight, somewhere! But what about the 20b the government is borrowing just to pay for the day to day running of the country. Now, that can't keep going on, but there is no end in sight and no sign of the government making and hard decisions or cutbacks.
McWilliams is opposed to our Eurozone membership in spite of our membership of it being a no-brainer. This makes me sceptical of his opinions on anything because if he was so far off the mark on the euro, he may also be with his other opinions.
Im just an ordinary person with no political leanings whatsoever but I cant help feeling a bubbling rage inside at whats happened and that in other countries there would be a revolution.
My main worry is as an example a developer local to me bought a field 20 acres for 2 million to develop on he has no planning permission carnt pay the dept now as he never sold his last 20 house's. So Nama buys that off the bank for 30% of the orginal value 600k, the tax payer now owns a field that cost 600k thats worth about 200k today. No one will want to build on it for at least 10-20 years as the market is over supplied with houses. and so all we can do is wait for a farmer to buy it back as land. how long do we have to wait for the value to increase back to the price we all paid?
What is happening in Ireland has happened in several countries, both in the recent and more distant past.
Its worth remembering that for all our outrage re. the property bubble and the reckless lending, there were few if any of us manning the barricades when the Government was spending hundreds of millions of stamp duty receipts on childrens allowance, pensions, early childhood supplement, €200 per week Jobseekers Benefit etc etc
Classic Bertienomics.... throw money at everyone and everyone and slither away with a pension which costs the victims €7mn!
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