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Are we missing something?

  • 11-12-2009 01:06AM
    #1
    starbelgrade
    Closed Accounts Posts: 20,739 ✭✭✭✭


    In the budget.. yes, there's cuts here & there, increases in other places.. the usual stuff really - nothing inventful, nothing progressive etc etc...

    But in the balancing of the books, even in Lenihan's speech, is there not something missing - ie., the money that we'll have to find to fund the bailing out of the banks?

    Are we missing something, or is it just me? :confused::confused:


Comments

  • #2
    Victor
    Registered Users, Registered Users 2 Posts: 78,803 ✭✭✭✭Victor


    €7bn was included in refinancing AIB, BOI and Anglo in 2009.

    NAMA will effectively be a semi-state, with its own borrowings, so very little will come from the government.


  • #3
    starbelgrade
    Closed Accounts Posts: 20,739 ✭✭✭✭starbelgrade


    I still think there's something missing... 7 billion was hardly small change & if NAMA needs to raise this, or more again, even if it is semi-state, how much will the state have to cough up next time?


  • #4
    ei.sdraob
    Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    NAMA is being paid for by ECB

    the government gives ECB IOUs, the ECB gives money (digits in a database) to NAMA at 1% (which is alot less than what normal Irish borrowing costs)

    assuming NAMA works out as promised ECB gets its money back (the money it conjured out of thin air) + low interest, the taxpayer doesnt pay a cent


    the problem lies in last sentence, will it work out? its a big gamble, either-way we wont find out for few years


    so to summarize, NAMA gets money from ECB at 1% due to ECB indirectly bailing us out, normal Irish borrowing for welfare etc is like 4-5% (more now?)


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