The Fianna Fáil Banking Crisis
On Bailout Tuesday last, the government told us how much of OUR money it was giving to the banks. Anglo Irish Bank, a small business bank is set to get the largest bailout, €18billion.
Much of the debate now focuses on how to deal with Anglo. Let it go to the wall or prop it up. It’s argued that letting it fail now would cost more to the taxpayer. “It’s too big to fail”.
This is a worthy discussion, however we need a bit of perspective here. Why are we bailing it out in the first place???
The government is gaining praise internationally because it is making the “tough decisions”. Bullshit!!
Maybe if Fianna Fáil and the PDs hadn’t let this happen in the first place, we wouldn’t have to bail them out.
People within banking have been saying since 2004 that the system was rotten. Easy credit allowed billions to be lent out with little chance of that money being returned.
Even in 2007 Michael Somers, then head of the National Treasury Management Agency (NTMA), told an Oireachtas committee that Anglo was in trouble, so he was reluctant to deposit money with it.
Somers was one of the brightest people working in government yet nobody would listen to him. Fianna Fáil didn’t have the balls to stop the madness before it was too late. And of course, 2007 was an election year!!
So, maybe FF have it right this time, maybe bailing out Anglo is our only option. BUT, who gave us this option in the first place? Who sent us down this one way street?? Fianna Fáil, and don’t you forget it!
May 14th, 2010 at 3:42 pm
Could you please stop Fianna Fail bashing? Yes, they aren’t a good political party, but nor is Fine Gael unless you’re looking through emerald glasses at them.
Fine Gael’s polices regarding finance and the economy go predominantly to the tune of keeping government interference to a minimal, as is Fianna Fail’s policy. The people that caused this economic mess was international banks that we had no control over. Anglo Irish’s failure was not predominantly to do with the recession, but it was due to reckless lending to certain individuals who gave guarantees way above what their own value was. In Fine Gaels policies this could still have happened.
I’m fine with blaming political parties for things that they cause, but only if you’re unbiased and truthful! Ireland does not have a political party that is truly reformative or will change things in a substantial way because realistically we have no option but to follow the US and Britain if we want to sustain our economy and relations.
May 14th, 2010 at 10:44 pm
Fine Gael have said consistently that we need an overhaul of our banking system. We want a full investigation into what went on so that we can “interfere” and prevent a similar crisis in the future. I don’t agree that if Fine Gael were in government, things would be the same. Fine Gael called for the property bubble to be tackled years before it burst and we highlighted the fake economy based on a construction boom.
I don’t look on with emerald glasses at Fine Gael. There’s so much I disagree on: Gay Marriage, Drugs policy and political reform to name but a few. These are areas where I’m progressive and not conservative and I openly criticise FG about this.
Thanks for your post.