Thursday, April 23, 2009

NAMA and the banks

I have read a lot of good and bad press regarding NAMA, the asset management agency being set up by the Government to buy the development-fuelled debt from the banks. David McWilliams has a great post on the subject.
I am not sure that it is a good idea for the country to take on a potential €90billion exposure at this time, on top of the multi-billion debt that we already have.
A primary law of nature is "cause and effect." What consequences have there been for the bankers who made the crazy lending decisions and the civil servants who allowed those decisions that got us into this mess?
They are still in jobs, still drawing down bonuses, or have retired "gracefully" with huge handouts. There has not been any major reprimand or action taken against them.
Those of us in the private sector are experiencing a severe recession. Lay-offs, reduced working hours, lower wages and cut-backs in all perks are the norm for the vast majority of us. Civil servants have the pension levy, but to date, a guaranteed job and pension. Bankers have not had to pay a pension levy and still appear to have a guaranteed job and pension.
As David McWilliams asks, "Who is running the country?"
Doesn't make sense to me!

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