Posted by jj on August 04, 2011 at 08:58:19:
In Reply to: Bank bailout increases deficit. posted by Ollie Wrenboy on August 03, 2011 at 20:38:13:
Well, of the €18.9bn deficit for 7 months, €10.6bn was for bank recapitalisation and the media wishes to focus on this.
But the more glaring issue is we spend €8.3bn more than we received in taxes on "normal" government spending.
As one who works in the financial industry it is this deficit that is causing the concern in the international markets. We might not like the recapitalisation of the banks, we might view that it is wasted money with no return, but most believe that it is coming to an end. The running deficit is not.
Greedy bankers and Greedy politicians ? What about greedy trade unions and greedy public ? The furore over a small €100 household tax just points to the fact that the Irish public still don't get it.
And the media reporting has a lot to answer for.
Just look at the issue in Italy. Their banks are extremely well capitalised - the issue there is the current deficit and their debt burden. Ditto in the US.
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