Can the People of Ireland Stand like the People of Iceland?
What example can we draw upon to see what the correct response is to crony capitalism? Iceland had this same problems a few months past. The people of Iceland chose to let their banks fail instead of paying for their mistakes. What do you think the people of Ireland want? They of course want the bankers to take the loss and not the people. Banks have very little to do with the REAL economy. Goods and services will always need to be delivered. The best thing we can do is wipe the debt out of the system through bankruptcy. The longer we try an prop up these banks through government intervention, the longer we will be dealing with a failing economy. I believe in free markets and a free market does not allow for bailouts nor FED subsidized banks. Let the government take care of the people and not their special citizens. Have you seen some of the conditions for this Irish bailout?
- Ireland gets Euro 67.5 billion ($89.4 billion) in bailout loans
- The 16-nation eurozone, the full 27-nation EU, and the global donors of the International Monetary Fund each commit euro 22.5 billion ($29.8 billion).
- Interest rates on the loans would be 6.05 percent from the eurozone fund, 5.7 percent from the EU fund and 5.7 percent from the IMF.
- Ireland will have 10 years to pay off its IMF loans.
- The first repayment won’t be required until 4 1/2 years after a drawdown.
- Prime Minister Brian Cowen said Ireland will take euro 10 billion immediately to boost the capital reserves of its state-backed banks
Ireland first must run down its own cash stockpile and deploy its previously off-limits pension reserves in the bailout. Until now Irish and EU law had made it illegal for Ireland to use its pension fund to cover current expenditures. This move means Ireland will contribute euro 17.5 billion to its own salvation.
Lets face it people, we should have let the banks practice free markets fail in our own country. How could it have been any worse than it is now? New and better banks would have sprung up in their place . There would have been a lot of chaos but the end result would have been responsible banks, and not a casino; like we had and still have. The Icelandic people set a much better example in holding their politicians feet to the fire.
Many of you will not like this guy’s financial coverage but he offers a consistent opinion of financial matters. I have found it a very good source of information. He posts a couple times a day. I like to look at all sides and draw my own opinion. That is why I troll here.