Four years on in Ireland’s crisis: No blame, no pain, no shame…

Colm McCarthy in the Sindo points out , via Stephen:

In Ireland, almost four years after the balloon went up, not so much as a parking ticket has been issued. Inquiries are under way by the Director of Public Prosecutions, An Garda Siochana, the Criminal Assets Bureau and the Office of the Director for Corporate Enforcement but none has yielded fruit. The Irish banking bust has been described by Central Bank governor Patrick Honohan as one of the largest, relative to the size of the country, which has ever occurred anywhere.

The snail-race by the investigating bodies is an embarrassment, has fed public cynicism and the belief that those responsible for the disaster will never be brought to account.

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  • This is what I’m talking about. The Dublin elite have no interest in reform, no interest in change. It is in their interests to preserve the status quo, from the Taoiseach to the civil service to the journalists and across the establishment. Nothing ever changes.

    That’s why I just blogged that we should move the capital to Cork. Get everyone out of their heads.

  • I see he forgot to mention that they also gave him – a cheerleader for the system that failed – responsibility for helping to fix it. And how has that worked out? This man is not an economist so much as a Chicago School mystic repeating the same mantra every week.

  • Alias

    The problem with europhiles such as McCarthy and Kinsella is that their analysis is skewed toward proffering the EU line that the blame for the failure of the eurosystem does not reside with those EU institutions which controlled it but with those domestic institutions which didn’t.

    In this way those who actually governed Ireland’s monetary and banking system escape scrutiny for their role in its fundamental mis-governance. It was the ECB which flooded Ireland with cheap credit as part of expansionist monetary policy; the EC which imposed Directives that allowed banks to massively over-leverage, and set Ireland’s banking regulation. On the domestic front, the Irish Central Bank is an executive instrument of the ECB and it is this EU institution which failed to detect that eurosystem banks based in Ireland were complying fully with EU banking regulations!

    Where is the evidence that eurosystem banks based in Ireland where not acting according to EU regulation, and were not doing exactly what the EU wanted them to do? None has been provided.

    Now that the eurosystem has proved to be an economic disaster for Ireland and those europhiles such as McCarthy and Kinsella who proffered the transfer of sovereignty over Ireland’s banks to it are shown to be complicit in the disaster, they suddenly proffer the view that the disaster is an Irish problem.

    Yet defaulting mortgages account for a tiny, tiny fraction of the 1.8 trillion of cheap eurosystem credit that the ECB flooded Ireland with in less than 10 years.

    Why did the eurosystem banks lend such vast sums to other eurosystem banks under the direction of the ECB? Clearly lending money to those who could not repay it is something that we should see prosecutions for, so let’s see the EU mandarins put on trial for recklessly destroying the prosperity of its unfortunate member states.

  • sherdy

    ‘four years after the balloon went up’
    Maybe it is now the balloons who are doing the investigating!
    No results – just hot air.

  • andnowwhat

    I think Mick should do a blog on flowerpot gate. It’s a tiny thing but Enda’s reaction says a hell of a lot about him in the way he blamed Ursla Halligan

  • aquifer

    This was a failure of a political system. The party politicians in government were not up to the job. They ignored the advice they were getting from their civil servants. Also, either they did not understand what they were doing, or more likely, prioritised short term political and personal advantage over the national and public interest.

    The ad hoc arrangements for political funding in ROI will also have helped keep the focus away from prudent planning for the long term, and away from representing public rather than private and local interests.

    In a small jurisdiction it may just be more difficult to sustain competent scrutiny of government policies and programmes. Maintaining numbers of independent academic centres and a variety of media outlets may help, also strong Freedom of Information laws.

    In the end discipline may be imposed. EU funds brought with them better cost benefit analysis for government spending, EU directives made ROI do the right thing over the head of vested interests and indifference, and now the EU may make fiscal discipline the price of monetary union.

    In an interconnected global economy and with downsized governments only the smart stay sovereign.

    In a small place shame still counts. It could be smart to make an example of some suits.

    Exemplary punishment for entire classes of offenders does not really have to be fair to be effective. The Roman Army took out every tenth man, ‘Decimating’ failed legions for effect.

    Could assigning blame to anyone but Brits still be felt as national betrayal?

    No Brits to blame so let’s not blame anyone?

  • wild turkey

    September 1913

    What need you, being come to sense,
    But fumble in a greasy till
    And add the halfpence to the pence
    And prayer to shivering prayer, until
    You have dried the marrow from the bone;
    For men were born to pray and save;
    Romantic Ireland’s dead and gone,
    It’s with O’Leary in the grave.

    Yet they were of a different kind,
    The names that stilled your childish play,
    They have gone about the world like wind,
    But little time had they to pray
    For whom the hangman’s rope was spun,
    And what, God help us, could they save?
    Romantic Ireland’s dead and gone,
    It’s with O’Leary in the grave.

    Was it for this the wild geese spread
    The grey wing upon every tide;
    For this that all that blood was shed,
    For this Edward Fitzgerald died,
    And Robert Emmet and Wolfe Tone,
    All that delirium of the brave?
    Romantic Ireland’s dead and gone,
    It’s with O’Leary in the grave.

    Yet could we turn the years again,
    And call those exiles as they were
    In all their loneliness and pain,
    You’d cry `Some woman’s yellow hair
    Has maddened every mother’s son’:
    They weighed so lightly what they gave.
    But let them be, they’re dead and gone,
    They’re with O’Leary in the grave.

    William Butler Yeats

  • aquifer

    Maybe ‘delirium of the brave’ was part of the problem.

    Lots of delerium, but with no swinging blades and flying shot to quicken the wit and bring down the plain daft.

  • tuatha

    Possibly one reason for the non response is that everyone has skin in this scam and they know that if just one thread is pulled, ie a collar felt, then the whole thing unravels and it’s justice for all.
    And we can’t be having with that now, can we?
    Who knows where that would lead?

  • Possibly one reason for the non response is that everyone has skin in this scam and they know that if just one thread is pulled, ie a collar felt, then the whole thing unravels and it’s justice for all.
    And we can’t be having with that now, can we?
    Who knows where that would lead?
    ….. tuatha 9 July 2012 at 3:40 am

    Quite so, tuatha, but that is exactly what is needed and that is exactly what new intelligence and new elite players are going to ensure happens. And this is APT territory* ……..

    amanfromMars Mon, 07/09/2012 – 07:52 ….. commenting on the Zero Hedge tale entitled, “China Threatens With Furious Retaliation In Growing Trade Wars

    So what other news. other than the West being intellectually bankrupt, is there? And if you were in China’s position, would you not also be careful to not be guilty of keeping the Ponzi going?

    Will somebody please do everyone a favour and administer the last rites and the coup de grace to something which is an embarrassment of false riches.

    *APT territory, for those who do not know and do not Google for what they don’t know, and isn’t that a madness and crazy sin of lazy omission to rank as a mighty arrogant self-destructive ignorance, is Advanced Persistent Threat territory.