The country is seething today as details of the sums that will be poured from our pockets into the banks were analysed. The Irish Timessummarises it thus:
“In reality, nothing that could have been said yesterday would have altered the fundamental risk associated with Nama. At its most simple, it is a calculated gamble that the all-in upfront cost to the State of bailing out the banks will be less debilitating than the wider costs of letting them fail. That upfront cost is still not clear but based on the information that was released yesterday it could involve capital injection of up to €31.8 billion in fresh capital and close to €40 billion in debt issued to the banks to pay for their discounted property loans.
The cost of having let the banks fail is unquantifiable and is inextricably linked to the impact on the State’s own credit worthiness and ability to borrow. Ultimately the view was taken that standing behind the banks and their obligations to international debt markets was preferable to letting their bond-holders suffer the consequences of the banks’ greed and stupidity.”
As my loving husband said, if the banks can transfer their loans to the State at a 60% discount then why can’t we transfer our mortgage with a 60% discount too. I guess the bottom line is that the international bond-holders are a lot more important than we are.
The Princess and myself watched a news report on NAMA and she asked me what it’s all about.
Me: Well, the State has pledged a lot of taxpayers’ money to the banks to keep them from failing.
Her: Who’s he?
Me: Who’s who?
Her: The taxpayer.
Me: Well, everyone who has a job and pays taxes to the State to run it. And everyone who is going to have a job in the future. You’ll have to pay for this too, sweetheart.
Her: Really?
Me: I’m afraid so, honey.
Her: You’d better up my pocket money then.
I like the Princess’s thinking. (I’m in the public sector, though not in a union.)
That girl has style.
We should send the Princess in to negotiate the next pay deal – in 2014 – when we MIGHT get 1% back after the 20% we’ve lost. Great. You are very virtuous to quote the Irish Times in such detail – I was rather taken with the Irish Daily Star’s approach – “They [two of the most egregious banking transgressors] should be shot.” A tad over the top perhaps for a national newspaper but it definitely has its finger on the pulse of the nation. I’d be happy to volunteer for the firing squad
You never said how Paris was – I hope it was wonderful and he was very surprised!
Just in case you’re feeling frivolous, I’ve tagged you for a meme. Only if you feel like it, of course.
Glad you’re with herself – she expects no less.
Dot, will investigate meme.
Catherine, thank you for asking, lovely but dull material in the way that having a nice time often is.