How much will the bank bailout eventually cost?

Redone said:
Unfortunately, our borrowing (debt levels) shot up very quickly over a short period of time, significantly greater than just the bail out amount. That amount wasn't to fund infrastructure, but (high?) Public Service pay rates, pensions and social welfare.
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I think we're close to spending the same amount in interest repayments as we spend on education and that's with exceptionally low interest rates . Living beyond your means has a habit of catching up with you so I suspect we're going to bump along with a heavily indebted government for years. I remember a socialist poster here before saying that's what governments do, they borrow. Well that's what we've done and now look where we are!
 
Redone said:
Unfortunately, our borrowing (debt levels) shot up very quickly over a short period of time, significantly greater than just the bail out amount. That amount wasn't to fund infrastructure, but (high?) Public Service pay rates, pensions and social welfare.
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Yes it did shoot up over a short period of time, nobody is denying this, and there are certainly very obvious headwinds that we are heading into that could, and in my opinion will, lead to another economic crisis.

But the assertion was made that 80% of our national debt is us living beyond our means. That means some €147bn, in its entirety, is 'beyond our means'. In 2007 the debt stood at some €47bn or 26% of GDP. Nobody in their right mind would suggest that was living beyond our means. Even if it was double that at 52% of GDP, or €94bn nobody would suggest that was living beyond our means. The fiscal and stability pact marks 60% of debt to GDP as prudent. For Ireland to achieve that with current figures the debt would have to reduce to around €157bn from its current level of €197bn.
Arguably we are beyond our means to the tune of 15% of GDP or €40bn, which is no insignificant sum.
€40bn, that sounds familiar.
 
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Firefly said:
I remember a socialist poster here before saying that's what governments do, they borrow. Well that's what we've done and now look where we are!
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Don't tell me you needed a socialist to help you figure that out?
Do yourself a favour and take a look at the most heavily indebted countries in the world, we are up there for sure. Along with Japan, US, Italy, Greece, Spain, Portugal, Belgium et al.
 
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