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The banking inquiry July 28, 2015

Posted by WorldbyStorm in Uncategorized.
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An excellent piece by Colum Kenny in the IT today on the banking inquiry. While I think he stretches matters when he argues that it’s a very ‘Catholic’ inquiry, he’s absolutely correct, in my view, when he notes that it is flawed from the start. Not least in the following:

Because of its terms of reference, the inquiry cannot explain where billions went that banks lent recklessly, and that the State replaced in their vaults at enormous cost to Irish people in health, education, social services and job- creation.
During 2011, as a communications academic, I wrote to party leaders and all deputies proposing an official report on who got the main loans originally lost by the Irish banks, on what terms they got them and subject to what supervision, and on where those billions now are. Someone has all that money, later replaced by taxpayers.

And:

Yet disturbing questions remain about those original loans. Treating such matters as private and confidential in the context of a disastrous crisis is reckless. Questions now arising, about how the National Asset Management Agency does business, highlight that earlier need to know. Twice bitten, shame on who?

It is essential to point out time and again that while yes, economic policy was remarkably stupid in the 2000s in relation to tax cuts and expenditure hikes, leaving the latter utterly exposed when the economic collapse occurred, it was the monies paid by taxpayers to cover private debt which has caused the most immediate problems – monies which many of us believe should never have had to go to cover those private debts.

Kenny also notes how ‘suspicions linger that it was really intended as a political show trial of the Government’s predecessors’. That, I think, hasn’t quite happened. In part because it has become ever more evident that there was broad political acceptance, even embrace, of the very policy approaches that exacerbated the crisis. But few in the orthodoxy come out of this process with their reputations enhanced. And in truth given the scale of economic and social devastation few deserve to.

Comments»

1. richotto - July 28, 2015

“……..and on where those billions now are. Someone has all that money, later replaced by taxpayers”.

Landowners who sold the land to the developers would surely take up a big part of that. Whats to be done then?

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Gewerkschaftler - July 31, 2015

Expropriate the expropriaters.

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2. CL - July 28, 2015
3. sonofstan - July 31, 2015

Did I hear that Fintan Drury described the meeting involving Brian Cowen, someone from the DoF, Drury himself and others as a ‘meeting of some very smart people about the economy’?

The Greeks have a word for it

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