I’ve gradually come to understand that, whether it is the world economic system, or our domestic economy …. it’s all the same stuff.
So the Irish Times tells me this morning that the Irish government hopes to share with private equity in recapitalising the Irish banks. They plan to put in 10 bn euro. Since they don’t have it lying around just like that, it’s going to come from a contingency fund to do with public service pensions. Which seems to me pretty much like me raiding the car fund to go on holiday – or raiding the holiday fund to buy a car. Reassuring or not reassuring?
And then the story of the Madoff billions. It’s the oldest scam in the business – use the money coming in to pay the most amazing returns on capital. And banks and financiers line up to commit millions and billions. Yet if it’s too good to be true it must be too good to be true.
One would like to think that one or two of the masters of the universe will be pygmified by all this. But I doubt it. And the actuarial valuation of our Pension Fund is looming. I don’t want to be the first nonagenarian bishop.