The Irish Taoiseach (Prime Minister) Enda Kenny was in Davos this week and caused a storm back in Ireland by his comments. When asked what caused the crisis in Ireland he responded:
‘What happened was that people simply went mad borrowing
This is unbelievable because just six weeks earlier he said:
‘Let me say this: You are not responsible for the crisis
The real causes of the crisis is the following which he well knows:
1. Low interest rates caused by being in the euro. Especially when Ireland needed to raise them to stop property bubble and high inflation. Of course low-interest rates meant nobody saved. People invested in property as a pension because they got so little in the banks.
2. Government never warned the property bubble was getting out of control, despite been warned repeatedly by its own Dept of Finance (which it ignored) , OECD, IMF, ERSI etc.
3. Media never warned the people, because they made a fortune from advertising.
4. Anyone who spoke out was laughed at. Taoiseach (Prime Minister) Bertie Ahern once famously said these people should “commit suicide”.
5. Banks massively changed their lending policies, where the golden rule was you could only get a maximum of 2.5 times your yearly salary plus 1 times your spouse, it went up to nearly 10 times you salary. In fact there was stories of people be encouraged to make up figures.
6. The opposition political parties (including current Taoiseach Enda Kenny) keeping their mouths shut. Strange that 😉
7. Banking Regulator and Irish Central Bank did NOTHING.
8. Bank auditors DID NOT DO THEIR JOB. Including letting Irish Permanent deposit €7bn overnight in Anglo Irish Bank to cook the books for the audit and then transfer back once audit was over.
9.Governement tax policy was completely wrong. It was setup for property based taxes EVEN THOUGH THEY WERE WARNED. When the property bubble was about to collapse naturally in 2002 they pumped it up with first time buyer grants in invester tax breaks. When over 20% of GDP was based on property they kept going.
10. Guaranteeing the banking system and taking on its debts. What a F**king disaster. WHICH IS THE REAL REASON IRELAND IS FUCKED.
Fianna Fail’s Niall Collins said:
“Where was the Taoiseach’s harsh criticism of European banks which helped flood Ireland with credit for years? He should be standing up for the Irish people and challenging the role of the banks when he has the chance,” he said.
Sinn Fein‘s Padraig Mac Lochlainn said
“This analysis that people in Ireland went drunk with credit, were reckless and they have to now be cleansed by a decade of austerity is very worrying.”
And finally, after paying back €1.25bn to junior bondholders of a bank that DOESN’T EXIST ANYMORE, Enda Kenny had to say about the €30 bn of IOUs (promissory notes) that Ireland has to pay to bondholders of the bank that DOESN’T EXIST ANYMORE.
The Taoiseach said there would be no discussion at next week’s summit on reducing the level of debt associated with Anglo Irish Bank’s bailout.
The European Central Bank is understood to be open to proposals to replace Anglo Irish Bank’s €30bn promissory note or government IOU, for another type of debt repayment.
Finally, Enda enjoy Davos. After all we’re paying for it. 😉
source: Irish Independent