Bailing out the Banks

2 euro coins
Image by Landahlauts via Flickr

So last night it finally happened. We formalised the bailout. We are taking an €85 billion loan. We will be paying an interest rate of about 5.8%. We will be loaning money to ourselves.

Yes, you read that last line right.

€17.5 billion will be coming for the National Pension Reserve Fund and the other cash on hand funds.

Who’s fault is this? The Banks.

€35 billion of this is for them. €50 billion is to cover state deficits. They are there because we gave the banks money!

It is a disgrace.

Links of Interest:

A difficult but essential deal – Irishtimes.com

€85bn rescue package – Unwelcome return to penal times – IrishExaminer.com

At least we know the grim reality – Independent.ie

Announcement of joint EU – IMF Programme for Ireland – Corkpolitics.ie

It’s All about Money – JasonoMahony.ie

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Author: Stephen

Cork born and bred, proud European and Irishman. Involved in many organisations and politics. Also writes for SpirtualityIreland.org and UCC Express.

2 thoughts on “Bailing out the Banks”

  1. To be fair, there is an annual budget deficit regardless of the banks due mainly to public sector wages, social welfare payments etc.

    Banks facilitated the folly of a property boom with easy credit, 30yr mortages, 100% mortgages etc. The government also stoked the property sector with measures such as tax breaks.

    However, the difference between banks and government is that the goverment has the responsibility to manage the economy, regulate banks and prevent boom/bust cycles. In my opinion, the best way to stop a property bubble is through good governance which enforces good banking practices. Banks will never have the authority, the mandate or the power to stop a property bubble.

    1. Oh I know there would have been a deficit anyway. But it wouldn’t be as large if we didn’t have to bail out the banks. They have sucked up a large amount of our cash reserves already.

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