New blogs

Leherensuge was replaced in October 2010 by two new blogs: For what they were... we are and For what we are... they will be. Check them out.

Thursday, September 30, 2010

Ireland to waste 30 billion euros in bailing out pointless bank

As a commenter explains under the extremely brief BBC news note, that is the cost of two years of public healthcare. All commenters agree: let it fall, use public money in public investment to generate much needed jobs instead. 

You are probably familiar with this image already: in yesterday's class war pan-European protests a demonstrator crashed this truck, representing the burden of Anglo Irish Bank to the Republic of Ireland, against the Parliament's gates. The incident has become known as cementgate, and is generating a number of silly jokes involving the words concrete and gate, as well as others such as constructive protest, crash, foundations, etc.

But the issue is much more serious: why should a state bail out a private bank? If anything it should nationalize it or, alternatively, just let it fall. Most business do not have the heavy state protection some banks do, nor see even a fraction of the absurdly high profits and disparate salaries for their managers. And most business, unlike banks, contribute to the real and not just the speculative economy.

Ireland is one of the European countries worst affected by the budget crisis, along Greece, Latvia and Hungary, all which are under IMF intervention (with the only result that their recession has aggravated many levels since then). I imagine that the least they can do is to waste 30 billion in a useless bank.

Can anyone tell me what do banks contribute to the real economy? I can't find a single idea, specially since they do not even issue loans anymore. 

Let them fall, all the banks except the public ones (which are the ones issuing money and which can lend directly to the public and even make a benefit from that).

No comments: