The charade of the government support for the Good Bank and Bad Bank idea has finally been exposed.
We basically cannot afford it. An orderly wind down is now being sought over 10 years it seems: this may seem too long, but apparently the longer it is the less costly it will be for the taxpayer, or so the
theory goes if property markets recover.
What is happening in NAMA? The BBC reported last week that it is taking much too long with lawyers and advisers delaying its implementation. If NAMA does not work then that is more debt on the Government balance sheet and the Taxpayer.
The Financial Times this week said the bond rate that the Government must pay of nearly 6 percent as against Germany’s near-2 percent suggests that Ireland is becoming insolvent.
They reckoned in their comment section that there must be some level of writedown of our debt, which makes some sense.
Why should the Irish taxpayer be responsible for all the crazy lending and bad debts of Anglo Irish bank? It is grossly unfair and an insult to the younger generation, some of whom must emigrate.
Those who are lucky to have jobs will shoulder this debt through higher taxes. Meanwhile politicians enjoy €100,000-a-year salaries plus expenses, which seems unjust in the circumstances.
Can the Government start to get some of the debt reduced without causing too much instability? That will be a huge task for Finance Minister Brian Lenihan in his talks with the EU and also heading into the December budget.