Bailout another example of imprudent banking

IF YOU could actually get a loan from a bank now, it would be on the basis that you were loaded and didn’t need it. From the bank’s point of view, they would be super confident that you could afford to repay it.

They would be sure that you would pay their interest rate on the loan also, which is vital, because that is how they make their profits.

It’s confusing then that the EMU/IMF are loaning Ireland money when we actually do need it, we’re broke and we haven’t got a chance of ever repaying it. It appears to be yet another example of imprudent banking.

It gets even more confusing when you understand that our ability to try to repay even a part of this loan is based on the total tax take here. But the EMU/IMF are insisting that €15Bn be taken out of the economy meaning less will be spent, so less tax will be taken in and businesses will close as a result, meaning less income tax taken in and more dole money paid out.

On top of that, they want us to increase the Corporate Tax rate, driving out our multi-nationals and leading to the collapse of the corporate tax take and another 100,000 on the dole.

To top it all off, the IMF/EMU are insisting on a crippling interest rate on the loans they want to give us. It’s a large monetary square peg in a small national round hole.

And yet, Fianna Fáil tell us that this is the way it “must” be.

John Mallon

Mayfield

Cork