Banking

As the Irish Banking system tightens its lending criteria the question must be asked, Are the banks punishing the wrong people? As small businesses struggle to survive due to cash flow problems, due to the banks pulling tight on the purse strings as they try to make up ground lost due to inept management and poor lending decisions. The Banks have lent Billions to property speculators, these billions secured on the basis of assets that today are not worth the paper they are written on. Yet with a few exceptions the banks have failed to pursue these speculators through the courts, the banks have preferred to await the Governments bail out plan - NAMA - National Assets Management Agency - already the Government through its surrogate child has committed 54 Billion to buy up 47 Billion worth of toxic loans from the banks. These loans we are told will eventually yield a 10% top up return on the Government's investment, yet the reality of such a return is a pipe dream. Many of the assets upon which these toxic loans were secured are worthless, for some of these assets to reach their original purchase value the property market would have to go up in value by 300%, land for which 400 million was paid is today worth less than 100 million and nobody wants it. Half build apartment blocks for which there is no demand we are told will yield a profit, not in my life time. The tragedy is that as the banks bolt the door the robbers have already got away and the only people being held hostage are the small and medium business people who are keeping this economy alive. I would ask the banks to release the innocent hostages and use every method at your disposal to pursue the real robbers including those who made it an inside job. See also, today's Irish Times Poll.