One way the ‘little people’ can get their own back

IN RESPONSE to Patrick Dolan’s letter (May 20) concerning options for the “little people” in the current financial crisis, we have in fact one powerful weapon at our disposal.

It simply requires all of us with mortgages, especially those in negative equity, to contact our lenders and inform them that due to the current economic climate, we have been forced, hopefully temporarily, to review our loans and our current ability to pay them.

As a result, we must inform them that, regretfully, our future monthly repayments will have to be in line with the current value of our homes. This approach is quite legal, necessary and morally appropriate in the present circumstances.

Given the banks and the Government’s irresponsible role in bankrupting our economy, we are simply offering them the opportunity to share our difficult, if temporary, burden. The logic of this approach is that we made decisions based on the Government’s ad nauseam confirmation via the media that the financial institutions were “regulated by the financial regulator” and thus were more than adequately capitalised and prudent.

We were also constantly advised by senior government ministers and economists that the fundamentals of the economy were sound and that, at worst, there would be a soft landing. What fools we were. Those who had the temerity to doubt the Government were castigated from on high.

Crucially, we the little people, as well as generations of taxpayers to come, have been forced undemocratically to borrow vast and unprecedented sums of money to bail out these corrupt private companies.

By doing so, we have ensured they can maintain the status quo and continue to pay themselves exorbitant salaries, pensions, bonuses and perks. What complete and utter fools we are.

At the same time, they are sucking the credit lifeblood from the economy to ensure their lifestyles, capital ratios and shareholder interest. Richie Boucher and his pals were at or near the helm when the disastrous lending decisions were cooked up. Incredibly, it now requires more than 100 taxpayers, or little people, to beaver away for a whole year to provide the income tax just to pay his salary and perks.

What fools we are. It is, and always has been, in the order of things that little people disproportionately and foolishly carry the burden for the “chosen few”.

What silly, compliant fools we are.

We will, of course, inform our lenders that when the economy recovers to full strength, as the Government assures us it will, we will review the situation again at that point. Widespread acceptance of this plan would frighten the living daylights out of the Government and the banks. It would result in a quickly cobbled response which would ensure an adequate and just support regime, this time for the little people.

John Cooney

Wilton Road

Cork