Subprime state an insane idea

I AM dismayed at the suggestion in some reports that Finance Minister Brian Lenihan might provide Govenment loans to ensure first-time property buyers can get mortgages that banks refuse to provide.

The banks are refusing because the properties are vastly overpriced and they believe mortgage-holders would be unable to keep up payments.

Since the banks won’t provide these loans, they are effectively subprime loans. If the Government provided them, the State would become a subprime lender at a time it can’t afford to clean our hospitals and build schools.