poetry in a crisis March 31, 2011Posted by Bradley in : financial regulation , trackback
There;’s something very poetic (but tragically so) in the Irish Finance Minister’s statement on banking:
Tuesday, 30th September, 2008 will go down in history as the blackest day in Ireland since the Civil War broke out.
The 30th September 2008 was the day on which the then Government extended the infamous guarantee to the Irish banks and decided that Anglo Irish Bank should be supported and maintained.
It quickly became apparent that Anglo was insolvent in the absence of State support, that the other banks were illiquid and that the banking system was not fit for purpose.
The banks were too big for the economy. The JCB and the swinging crane had become the logos of the banks, and Irish bankers were as likely to be funding apartment blocks on the Black Sea or dabbling in property schemes in Singapore, as they were to be investing in the Irish economy.
We are now in the third year of the banking crisis. The previous Government failed to act. They ducked and dived and procrastinated as they lurched from one crisis to the next. They went through periods of denial and periods of self justification. They paved the road to disaster with good intentions.
They never fixed the broken banks however.