Burning 18.3 billion of your money

I hope they are lying. I hope the government does not really intend to put 18 billion more into Anglo-Irish Bank. I hope they are just pretending that they are going to give Anglo all this money in order to boost “international confidence” - but that really they intend to wind it down. That’s our only hope now. That the government is lying.

According to Lenihan "Winding-up the bank is not and was never a viable option" because an immediate wind-up would lead to a fire sale of assets resulting in additional losses of €30bn. Yes, but those losses would NOT fall on the Irish taxpayer, if the winding up takes place AFTER the government bank guarantee lapses at the end of this year. And unless the government is insane, they will allow this guarantee to lapse. The foreign banks to whom Anglo-Irish Bank owes money would then need to make the best of it once the bank is closed down.

So really the government must be lying. Because if they are NOT lying, you know what this means? You want to know why the government would be doing this? It’s hard to believe the reason. I have difficulty believing it myself. It is incredible. But here is the reason: if Anglo-Irish Bank is closed, the foreign creditors will seize all the worthless property and land and sell it at knock down prices. That would mean that houses and apartments and land would become affordable to ordinary Irish people, which would be great for the people who live here, and a great boost to our economy’s competitiveness. But it would be a disaster for Fianna Fail and their property developer chums, as well as for the other banks.

Think about that all you young people out there, as your pay is being cut, or you are losing your job, or as you struggle to pay your mortgage, and are told that there is “no money” for any of these things. The state is taking 18 billion of YOUR money and pouring it down a hole. That is eighteen thousand million euro. You could build about 50 major hospitals for that, assuming each hospital cost 300 million euro. We have become so accustomed to hearing these large figures being thrown around that we no longer know what they mean – how many schools will be underfunded, how many hospitals will be understaffed, how many people’s incomes will be reduced, in order to pay for it.