The Irish people have been asked to stump up for debts owed by irish banks to German and French banks. Irish banks like Anglo-Irish were giving 120% mortgages to people who had shown no inclination of being able to save otherwise they would have been able to stump up a deposit. They were borrowing this money from German banks mainly who were able to borrow in the market at a lower rate than the Irish banks could.


There is a bit of cheating here anyway. If you would loan German banks money at 2% but would only loan money to Irish banks at 4%, wouldn’t it be a bit underhand for the German banks to borrow that money from you at 2% and loan it to Irish banks at 3%?

That’s a bit of an aside, but the Irish banks had a risk assessment department filled with the best of Irish graduates and fancy risk assessment software to analyse the risks. The German and French banks had even better graduates, risk assessment departments and computer software. They took an investment decision to lend. They got it wrong like the Irish banks did.

When you make a bad investment decision, as everyone know, if you get it wrong you pay. Anyone who has ever bought shares or even backed a horse knows that. However, Germany and France are big countries and they bullied the EU and ECB into demanding that Ireland paid up for all the bad investment decisions that the German and French banks made.


This was crazy yet successive Irish Governments volunteered the Irish taxpayer to pay back the money from the bad investment decisions made by the German and French banks. They were bullied into it but they should have still resisted and stood up for their electors. The German and French banks had made big profits from loaning money previously to the Irish banks who loaned it on to Irish people buying houses.

The Irish people had no stake in this investment, and made no profit out of it but they were still volunteered to pick up this debt when things went wrong. As result every household in Ireland has now picked up £21,000 of debt each just for Anglo-Irish Bank alone.


They had no part in the investment decision, they made no profit from previous loans by the German banks to Irish banks. So, why should they pick up the tab. It’s just crazy. Those that made the bad investment decisions should have picked it up.

That’s what happens when a company goes bust. Those that lent it money lose their money. Next time you are in the bookies and you lose your money try contacting Donegal Council through Martin Farren and ask for it to be refunded.

It’s about time that an Irish Government stuck up for its people and not for foreign interests.