Ghost of Anglo still haunts us

If Irish Water is the omnishambles of 2014, then Anglo Irish Bank is likely to be the omnishambles of the first several decades of this millennium.

Like some banking Chernobyl poorly encased in an ill-designed, hastily erected carapace, it continues to leak its toxicity, poisoning all around it. Anglo, let us not forget, was brought low by its participation in, fuelling of, and entwinement with the housing market. The first act of this government, elected with a massive mandate to drive a democratic revolution, was to pay an instalment of the promissory note. This, in my opinion, was the font et origo of the malaise that affects the coalition, proving that it takes a very short while for the elected to lose touch with their promises. It became very clear that it was, in fact, to be Frankfurt’s way.

The next instalment of the notes was parked, rolled up in effect. Faced with a large bill, the Government then enacted a feature of financial legerdemain, converting the promissory note, which had previously been argued by Michael Noonan to be illegal, into national debt, indisputably and ineradicably legal. We will continue to pay, in a strange and convoluted manner, €25bn over the next several decades for Anglo Irish Bank. Having had an opportunity to walk away, the Government buckled. It has been buckling ever since.