Brendan Keenan: Nama tough love is political poison
A less stern view on bank capital, along with the loans transfer, may have helped to quell public fury
Published 11/04/2010 | 05:00
THE dissident economists to a large extent got their way in that transfer of bank loans to Nama, and the resulting pledge of fresh capital to the banks. Not that they seem very happy about it.
The arguments put forward in letters and articles in the newspapers still swirl around the popular blog, irisheconomy.ie. The temperature of the debate among the economists has cooled, though. On the other hand, there is no doubt that it has risen dramatically among the public in general.
If so, it illustrates once again that economics and politics are two different disciplines -- "science" may be too strong a word for both. Someone did say that, in the long run, good economics make good politics. But the long run can be too long for politicians.