Anglo is a corpse, not a zombie bank
Fianna Fail says the debts built up by Anglo under Sean FitzPatrick are the taxpayers' responsibility. Leo Varadkar disagrees
Published 04/04/2010 | 05:00
ANGLO Irish Bank has been described as the Celtic Chernobyl. In fact, the whole Irish banking system has exploded under a mushroom cloud. When Brian Lenihan gave the banks a blanket guarantee, he told us that they faced a temporary liquidity crisis triggered by the international credit crunch. In fact, it was a solvency crisis that was largely of their own making. He was wrong then and he is wrong now.
The bank bailout will cost every family €2,000 per year, forever. It is the equivalent of an extra €50,000 on your mortgage. And that's just for the interest payments. It is the price of a family holiday, a monthly mortgage payment or perhaps registration fees for a child going to college. We will all have less money to spend, and that will impede the recovery -- when it comes.
Next year, the Government will spend more paying the interest on the national debt than it will on education. There will be no smart economy for Ireland. All that cash, from every family, every year, just to pay the interest on the debt being racked up to bail out Anglo Irish Bank, Irish Nationwide and the others. Debts built up because of their reckless banking practices watched over and encouraged by an incompetent Regulator, a Central Bank that barked but didn't bite, and a profligate Government that ignored all of the warnings (and there were plenty) and, if anything, made it worse.