10/21/2008

Sinn Féin and the Banks

I promised JG that I would be doing a post on Sinn Féin's decision to support the financial bailout of Irish Banks.


This weeks An Phoblacht has an excellent article in which Pádraig Mac Lochlainn supports Sinn Féin's action and Eoin Ó Broin opposes it.

Sinn Féin's decision to support the Credit Institutions Bill has caused a lot of headaches for Republicans, me included.

Where were the forced resignations of the bank directors, the very people responsible for this disaster? It's hardly surprising that Fianna Fail would not ask for such a thing.

Let's not forget that like Fianna Fail the entire political establishment and I include the banks here, never fall on their sword for mistakes.

Fianna Fail have bred a culture of irresponsibility where people do not take account for their actions, they get rewarded for their incompetence in fact.

It's my firm belief that the Bill acts in the Banks best interests as opposed to the national interests.

David McWilliams has an excellent article in last weekends Sunday Business Post in which he links the current financial rescue to that of Gresham’s law, it states that ‘‘bad money drives out good money’’.

It's all very well for Padraig to put forward a wish list after the fact. You don't buy a car and then try to haggle after you have paid the money.

I agree with Eoin when he argues that this bill does not address the causes of the current problem, in fact it may make things worst.

The Celtic Tiger was fed on a diet of low cost-high risk debt, something which was encouraged by Fianna Fail through their tax incentives for property developers.

Fianna Fail have taken credit for the Celtic Tiger, they must now also take the blame for the sour after taste.

In my view this Bill is reckless and Sinn Féin, even though they felt they were acting in the national interests, were wrong to support such a bill.

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