Irish Budget

M

Melendez

At the Start
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A tad savage.

For me it's the equivalent of taking out a €100,000++ mortgage to back one of Bar The Bull's strong fancies, with the obvious consequences.

Come next October when the next budget is being readied, what odds that the government deficit will be 3 or 4 billion worse than currently predicted? You know it's going to be the case. And that's before the dodgy loans, which will be taken on at far too small a discount. A bit like the abuse liability of the church multiplied by God knows what. You know that will happen too.

Doomed!
 
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I don't know. You're probably right, but this budget has taken a fair portion of my discretionary income and there are many in a far worse position than myself in that I don't have any budget bursting mortgage repayments (now with less tax relief). This whack alone will significantly dry up spending in an already drained economy, if they do it again a huge amount of people will go under.

I'm not critisizing the government at this time given the position we are in. Whilst I can't see this getting us out of the hole I've heard no better suggestions. At least this way it might somewhat contain the damage in the short term, in hope that Obama et al can get the world economy moving quickly enough to stave off complete disaster.

Given the level of opposition there has been to any suggested expenditure cuts over the last 6 months. I reckon, even if this particular budget is endured, workers are on the edge of what they will accept and we are in for a sustained period of Industrial relations unrest which will drive the economy down even faster.

This will eventually be sorted out, but there is going to be a huge amount of suffering involved in the meantime which will stretch far beyond abandoning the second holiday and giving up the smoothies and gym membership.
 
The more I think about it doesn't matter what price they pay for the loans.

If they pay too little for them, they will have to recapitalise the banks to make up for the losses. If they pay too much for them, they will have to absorb the losses themselves.

The devil is in the detail with this NAMA scheme; how is it to be funded, what is the intention of NAMA (hold and work out, or dress up in a dickie bow and flot to some yanks).
 
I still can't really see the sense in refusing to nationalise the banks. It gives the government far more flexibility and control over the financial system. The current share values are surely only a reflection of how many freebies they are given by the govt. Without the handouts they are worthless.
 
You Guy's have my deepist, but did you realy think money grows on trees, spare a thouht for the people who lost all the homless the guys who have lost there jobs and when we get hit we are going to kop big time over here, What goes up must come down.
 
off the subject.
Mortgage business has picked up over her the last month...Official figures?? but more important at a local level which I'm involved with.
Maybe a green shoot??
 
I get the impression that Lenihan is learning on the job. The last thing he needs is to have his finance department running banks. His view is that it is better to have the banks at arms' length, answerable to the DofF, rather than have civil servants run them.

I kind of side with your viewpoint, but it is a difficult decision to make.

There is a lot of merit in taking over one bank, using its retail operation as a state banking service. Then you let the others dick around or go bust, trying to limit the consequences of the bust on the system as a whole.

It is a sorry mess.

Melendez said:
I still can't really see the sense in refusing to nationalise the banks. It gives the government far more flexibility and control over the financial system. The current share values are surely only a reflection of how many freebies they are given by the govt. Without the handouts they are worthless.
Click to expand...
 
You Guy's have my deepist, but did you realy think money grows on trees,
Click to expand...

Of course I know money doesn't grow on trees. Someone already let me in on the secret at least a month ago.
 
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