Ireland’s small business trap…

Moody’s have just announced that it expects Irish banks will regain substantial market funding access only after considerable progress in deleveraging. Err, that sounds nasty. Meanwhile Associate Professor Brian Lucey has been telling people in his home town in Kerry how it’s going to be:

“People in small businesses need to be aware the banking system will continue to be broken and access to capital will get even more problematic.”

Trans. The banks won’t help you and the government can’t… It’s the same for stricken countries all over Europe… How long will the new PP government in Spain last, if it has no means to get out of this hole…

  • JH

    In plain English, the banks can’t borrow until they’ve paid off some of what they’ve borrowed.

    At which stage we’ll see if we’ve really learnt anything at all.

  • aquifer

    Maybe government can extend the payment terms for the sort of taxes paid by growing or employing businesses. VAT, NIC etc. Because government will get their money back before anybody else if things go bad. i.e. Their ‘lending’ is always better secured than banks’.

    One of our banks should be sold to the Swiss, Arabs etc to get some real money into the economy.

    There is an argument however, that banks’ judgement is so bad that we will be better without credit, when it is lent on the price of building land or the reputation of golf club cronies. i.e. Successful businesses will grow and the duff ones will disappear earlier than otherwise. What we need in this case is more efficient insolvency procedures to recycle productive assets back to people who can use them.

    When the rich are even richer, Peer to Peer lending also has huge potential if government could organise some speed dating sessions.

  • Drumlins Rock

    Can outside banks come in and do the lending when things seem profitiable enough for them?

  • Greenflag

    The Black Death of the 14th century carried off so many people that it became possible for the poorer classes to rise up in society.Wages rose for peasants and the rise of a substantial middling class became possible .

    The Black Debt of the early 21st century is carrying off so many of the middling and poorer classes throughout the USA and Europe that the only way they can improve their financial position is by devouring or destroying as many of their fellow middling and poorer classes in the hope that there will be more to share about between fewer . Some will aid and abet the financial corporations and right wing governments in this task in the hope that they themselves will be saved .And they will for a time but there will be little respite and their children and grandchildren will bear the same crucifix to be impaled on by the bankers.

    When will the politicians finally learn that the system is broken ? When not a stone lies upon a stone I suppose 🙁

    President Abraham Lincoln described the situation as it was then and even more so now 🙁

    Bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of a pen, they will create enough money to buy it back again. Take this great power away from them, and all great fortunes like mine will disappear. And, they ought to disappear, for then this would be a better and happier world to live in. But if you want to continue to be the slaves of the bankers, and pay the cost of your own slavery, then let bankers continue to create money, and control credit.”

    “The money powers prey upon the nation in times of peace, and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. They denounce as public enemies, all who question their methods or throw light upon their crimes.

    I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe. [As a further undesirable consequence of the war…] Corporations have been enthroned, and an era of corruption in high places will follow. The money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed.”

    Not that ‘bankers ‘ did all the damage by themselves alone. Alas they were aided and abetted in their machinations by willing politicians of the left and right and by that more most numerous group of politicians the ‘ignorati’ those who did’nt know or pretended not to know what the banksters were up to !

  • dodrade

    I’m afraid Lincoln didn’t say that at all.


  • Greenflag

    @ dodrade

    I’m afraid your link doesn’t work

    Anyway heres two other USA President’s on the same issue .

    “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered”.

    US President Thomas Jefferson

    Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”

    – US President, Andrew Jackson, 1832.

    President John F Kennedy was the last US President to actually stand up to the banks with tougher regulations and legislation but was assassinated before the Bill could be passed . Lyndon Johnson kowtowed immediately to the banks so he could have a hassle free run at his guns and butter policies -more war in Vietnam and the Great Society back home . now whatever happened to Vietnam and the Great Society eh /

    I suppose we’ll be able to ask the same of Afghanistan and Iraq and Cameron’s ‘Big Society ‘ 10 years hence ?

  • Alias

    One of the key (mis)selling points that the government used to persuade the public that it was a grand idea to assume hundreds of billions worth of eurosystem debt was that it would “get the banks lending again.” The whole scam has been an organised fraud from the start. In law a contract entered into under false pretences is regarded as null and void. There is no moral basis at all for continuing to honour this deliberate fraud perpetrated on the Irish people by their own government. We really need a revolution here, and to hang most of these treasonous eurogombeens from as a fortunate by-product of it.

  • Greenflag

    @ Alias ,

    ‘There is no moral basis at all for continuing to honour this deliberate fraud perpetrated on the Irish people by their own government.’

    When I read Alias using the word ‘morality ‘ it’s a bit like reading that Mahatma Gandhi was a closet life long carnivore who dined on beef steak in real life while proselytising for the sanctity of the holy cows and broccoli in his public utterances 😉

    ‘We really need a revolution here, and to hang most etc’

    You’ve been llistening to too much of Max Keiser who’s also in ‘lynching ‘mode. His preferred lamposts are located in the Wall St and City of London are and he even approves of the recent Chinese execution of financial fraudsters .

    To see why Greeks withdraw euros as they fear redrachmatisation

    And how little changes to banking rules made by paid for politicians enabled bankers to steal more from their clients while calling the transaction an ‘internal repo’ . Madoff a mere novice in comparison to Citigroup and BOA & Goldman Sachs .

    Kleptocracy rules in Ireland , the UK , USA , Greece , Italy , Russia etc aided and abetted by local and international plutocrats .

    ‘the wurrrld is in a state of chassis ‘ as Joxer Daly said .
    There isn’t enough length of rope to hang them all assuming you could pay enough for a lawyer to convict them .

    As Max correctly states most of the Wall St banksters would be in jail if they had’nt ‘bribed ‘ the politicians to change the laws to make it easier to steal from clients and customers 10 years ago and even up to 5 years ago !

  • Reader

    Greenflag: now whatever happened to Vietnam and the Great Society eh
    Now they have Medicare, Medicaid, a bunch of Civil Rights acts and eventually President Obama, so LBJ did at least manage to deliver quite a lot on almost all fronts.