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Thread: Lenihan in Denial

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    Default Lenihan in Denial

    Finance minister Lenihan seems to be in denial of the need for irish banks to recapitalise (joined there with Eugene Sheedy). What I wonder is : why? Every commentator from every direction is ageed on this, he debate being on the source of the funds not the need for them. Is is in denial, in over his head, incompetent or inept, or just in a funk?

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    well body of evidence...youve answered your own question! he IS in denial, he IS in over his head, he IS incompetent and inept!

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    Politics.ie Member wombat's Avatar
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    Its a bit like the property bubble, keep denying the obvious in the hope it will go away.

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    anyone wana take bets that there'll be a bank bailout similar to the builder bailout in the next actual budget?
    as opposed to statements and garauntees...how likely is it the goverment will announce allocation of exchequer and taxpayers money to prop up the banks?

  5. #5

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    Quote Originally Posted by peadarmc View Post
    anyone wana take bets that there'll be a bank bailout similar to the builder bailout in the next actual budget?
    as opposed to statements and garauntees...how likely is it the goverment will announce allocation of exchequer and taxpayers money to prop up the banks?

    We need this well before the next budget - unlike the builders the eocnomy cannot function without a banking system. Either we wait for Mr Santander or Herr Doktor Commerz or Monsieur SocGen or we do it ourselves. And who would put shareholders money into the irish banks now. so, we are stuck with a raid on the NTMA....But maybe Brian Lenihan knows something he isnt telling us.

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    Politics.ie Member carlovian's Avatar
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    The problem for Lenihan is hes been defending the guarantee on the basis that no taxpayers money has been used to bail out the banks. For 2 weeks FF were calling it a master policy that other countries would follow.

    Imagine what will occur when he raids the pension reserve to bail out the banks while at the same time increasing class sizes and taking medical cards from pensioners.

    Everyone knows that the banks need capitalisation and the market wont do it so guess who that leaves. But that action will be the toughest political move ever.

    The other problem is that hes a lawyer whos an inexperienced minister and he knows nothing about finance !!!

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    Yeah, they only have one plan: re-inflate the housing bubble.

    That's it.

    The Budget was based around this: a bit of tinkering around the edges to save a few shekels and make it look like Hard Decisions Are Being Taken, each designed to enrage and distract attantion away from the Builder Bailout which gets bigger and bigger the more we hear about it. They plan to borrow up to €10bn now to finance tens of thousands of sub-prime mortgages on unsellable worthless empties.

    That's the real story here. FF have only ever had one economic policy, ever since the 1960s: High Land Prices. It's at the core of everything, at the heart of how everything else operates. And they are now in the process of bankrupting the entire nation and causing untold misery for millions, all to defend their Holy Grail of overpriced shoeboxes.

    They only have one plan: divert all resources into creating a new property bubble and get house prices soaring again and all the sheeple scrambling to Get On The Ladder. 2005, how are ya, nice to see you back.

    That's it. That's the entire extent of the economic "thinking" that goes on with FF.
    Je suis un loo-lah

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    Politics.ie Member wombat's Avatar
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    Quote Originally Posted by BodyofEvidence View Post
    .But maybe Brian Lenihan knows something he isnt telling us.
    You would hope so, seeing as he's telling us nothing.

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    yes but is lenihan not actually undermining the banking sector by offering government sponsored "subprime" mortgages?

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    Default FF know if they recapitalise the banks they will

    1) earn the wrath of the shareholders if they devour their equity
    2) earn the wrath of taxpayers if they recapitalise and give the shareholders a break
    3) admit gross incompetence in the management of the economy, and regulation of our banking sector
    4) The developers will get burned

    they have waited as long as they dared but no sound of the cavalry's hooves in the distance such as big big cuts in interest rates.

    They might be on the way but they wont get here in time to save the the businesses that depend on bank loans.

    While Rome has been burning the Nero has stood by and fiddled.

    The banks could have sought a right issue when their share price was at its zenith.

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