Faith and Finance

Banks have a pivotal function in the economy, they are the main creators of the money supply. In granting or issuing so called ‘loans’ to their customers they create the money that is essential to make the modern economy work. In fact says Prof Werner: ‘there is no such thing as a bank loan’ he says what happens is credit creation, when banks make the money (credit ) needed out of nothing. He explains how the system works, whereby, from a miniscule deposit of funds a huge amount of money is created.
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Question by I Stuck Skittles Up A Sheeps Bum: How much money does Ireland owe thanks to the banking crisis?
How much money does Ireland owe thanks to the banking crisis? How much of this is being payed by the taxpayer?

Best answer:

Answer by P.D.
The final figures still haven’t come in as more and more assets and liabilities are still being transfered to the National Asset Management Agency. At the moment, the figure stands at €73 billion. All of this has been guaranteed by the government and is being financed through IMF/ECB aid, although this aid is in the shape of loans with interest attached and will under the current agreement all be paid back by the Irish taxpayer.

It’s a pretty immoral situation, in that the ordinary Irish person had very little to do with the crisis. Poor regulation, dismal banking practices and risky lending by German & other banks all contributed. Those who took the risks should bear at least part of the burden. Instead, they have had their unwise investments guaranteed at the expense of the ordinary taxpayer and all those responsible have gone scot-free.

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