Ireland reveals full horror of banking crisis
irish -liberty or death! 2010/10/02 12:21:24
|Ireland reveals full horror of banking
|Published on 10-01-2010|| |
Source: ABC AU
Taxpayers are being left with
the bill and deeper austerity measures, but the government says the banks are
too big to fail.
Overnight taxpayers learnt they will be shouldering an
even bigger burden to bail out the Anglo Irish Bank - to the tune of $41
"The banks have actually got us into this mess. They should
actually get us out," one person said.
"It is too shocking when you see
people still on the side of the road homeless and yet there were these people
smoking their big cigars and yachts out in the Mediterranean," another
With unemployment at a record high of 14 per cent, Macdara Doyle,
from the Irish Congress of Trade Unions, says citizens cannot afford the bailout
"We started out at this place two years ago with what we were told
was the cheapest bank guarantee or bank rescue scheme in the world," Mr Doyle
"[It] then went to $4 billion. It is now at about $29 billion or
$34 billion depending on what scenario you believe. It is not working. It is
killing the economy."
Irish finance minister Brian Lenihan says he
understands the country's frustration, but says this should draw a line under
the taxpayer's liability.
"The Irish people are entitled to be angry with
the bankers who lent recklessly over a considerable period of time in the
earlier part of this decade," Mr Lenihan said.
Irish government borrowing
was heading to 12 per cent of its annual economic output.
This will now
treble; a third of the Irish economy will now go towards supporting its
Independent Irish senator Shane Ross says the astronomical costs
will be reflected in the November budget, which was already set for cuts in
public expenditure of $4 billion and tax hikes.
"I think we're probably
going to have a property tax, which is totally an anathema to the Irish psyche.
We'll probably also have a tax on water," he said.
Senator Ross says the
Irish have to accept the party is over.
"We had a binge for so long that
we are suffering from the hangover.
"We've had maybe a feeling of guilt
and that we weren't doing too well that this was a bit of a false boom, so I
think we have been very, very passive in accepting the last
Business editor David Murphy from Irish broadcaster RTE says Irish
taxpayers are sceptical that pouring more money into the Anglo Irish Bank
bailout is a smart move.
He says, however, there has been a heartening
reaction on the international financial markets.
"The bond markets who
wanted to charge the Irish government almost 7 per cent for borrowing money
earlier this week, they've relaxed a little bit," he said.
are also being felt by Spain, with a major ratings agency downgrading its
triple-A credit rating overnight.
The one-notch drop is in anticipation
of the Spanish government pushing through more radical spending reductions and
is another reminder to markets that all the anxieties about the eurozone's
financial instability are far from eased.
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