The myth of nationalisation as the solution for banks.

‘Value for the taxpayer’ is the most common line I hear in defence of nationalisation, and inside I laugh every time I hear this line, because it implies that up to this point we gave been actually getting value for our taxes. If our tax take was managed so carefully in the past (as the argument for ‘value’ seems to suggest because they certainly are not saying ‘we were ripped off left and right in the past’) we would have a surplus with which to counter the current cycle, much like Chile or Norway are doing.

It struck me that value for the taxpayer might be in keeping the banks non nationalised and here are a few points that I have not seen answered adequately in the public domain.

1. If an Irish pension fund takes a serious fall in value due to the bank shares it holds being nationalised (on top of what are already serious losses, wiping the share holders may push a fund over the edge) …

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A simple way to understand Liberty & the Free Market

This is a simple video, and yet a compelling one about some of the fundamental rights of people and of our right to self determination. How does this tie into mortgages or economics? Simply put it shows that the government of a country don’t have the right to force the state to underwrite banks, in fact, it only rewards bad behavior and the end result is that we all pay for a business issue which we did not create, if a bank lends you money it does so by choice, when in reverse (such as our state bailout plan) we were never given any right or choice as to how it would work, or if it was even a good idea. The guarantee was given first and conditions attached last, ill thought out and moral hazard is merely the beginning of it all.

Read More

A simple way to understand Liberty & the Free Market

This is a simple video, and yet a compelling one about some of the fundamental rights of people and of our right to self determination. How does this tie into mortgages or economics? Simply put it shows that the government of a country don’t have the right to force the state to underwrite banks, in fact, it only rewards bad behavior and the end result is that we all pay for a business issue which we did not create, if a bank lends you money it does so by choice, when in reverse (such as our state bailout plan) we were never given any right or choice as to how it would work, or if it was even a good idea. The guarantee was given first and conditions attached last, ill thought out and moral hazard is merely the beginning of it all.

Read More