Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Are we missing something?

Options
  • 11-12-2009 1:06am
    #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

  • Options
    #2
    Victor
    Registered Users Posts: 78,436 ✭✭✭✭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.


  • Options
    #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?


  • Options
    #4
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭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?)


Advertisement