What happens when you lynch bankers?

Every calamity in human history tends to have a corresponding scape goat. Often in financial busts it becomes xenophobic, race often plays a strong role, the US Civil war was as much about the dichotomy of the Northern and Souther economies as anything else, while slavery was front and centre it was the fundamental economic difference between a plantation system in the south and a rapidly industrialising economy in the north that helped to draw battle lines. In fact, your average southerner wasn’t a white slave owner, they were a poor white farmer who only made about enough to live on.

In the 1980’s Ireland blamed single mothers, I was still in Los Angles and there the popular blame was against Mexicans. The blame game is nothing new. In the early 1300’s during the Great European Famine they blamed bakers and millers, the Parisians went so far as to tie them up and publicly whip them, the real enemy in that instance was mother nature who delivered three summers of rainfall that caused crops to fail, but you can’t lash …

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Why banks support bangers

There have been headlines about the way that AIB underwrote certain loans to Liam Carroll, judge Peter Kelly is of the belief that the security may not be correct because AIB essentially gave him the money in early 2009 on the back of a personal guarantee and some other minor security.

Why would a bank do this? Especially as they were curtailing lending to every other sector of the market? Especially when they were being saved by the taxpayer and had just been bailed out? This isn’t to defend the banks, but to explain the reason why they acted in such a counter intuitive way, any right thinking person would be correct in assuming that they should have been trying to rein in developers, but that is the reverse of what they did, rather they extended more credit to the developer.

Explanation for this is simple, Carroll had brought AIB too far down the rabbit hole for them to turn around and pull the plug, a bank gets to a certain point with a …

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