Thread: 3.7 billion deficit in Q1 - Lenihan says economy is "weak"
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Old 2nd April 2009
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droghedasouth droghedasouth is offline
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Originally Posted by Marlowe View Post
I know it does not increase the calculated deficit,but borrowing money at high interest rates to invest in a bear market is insane.One of the first things we learned in our economics class 30 years ago was never borrow money to invest in the market.It's even more valid now.
To be fair to the governemnt, they are borrowing at roughly 5% to get 8% on the preference shares from BoI and AIB. As far as I can see none of this years or next years NPRF conribution will go anywhere else.

Your argument is anyway a bit simplistic - a bit like saying don't invest in a pension until you pay off your mortgage.
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