May 26, 2010
At the moment, there is plenty of money in irish pensions. Could a financial vehicle be created, state guaranteed financial vehicle for all those pensions to be invested in the irish economy at a favourable return. This would need a statutory footing. Could they be used to create at least one \’good\’ bank which would be then directed to work for the irish economy to the actual benefit of it\’s investors. i.e. The People.
At the moment irish pensions are getting hammered, and, thousands of pensions are about to mature, which need a good home. Can this be created? Could this home be a bank? Once the bank is created, the option to move your pension out of the bank easily should be available, and there should be a decent dividend of around 6% while the pension is there. An Irish Pensions Bank, run by honourable staff, of which there are thousands in the banking/financial community in Ireland.
There is plenty of money in the right places as long as it doesn\’t all go to finance the developers debt.
None of us know, still, exactly what is the magnitude of the mess in the banking system. Despite assurances, none of us know how far into hock, the banks are in relation to securities, and other toxic debt. The banks and government assured one and all the banks were in good shape, less than ten months ago. One thing is for sure, the only way to get the economy going is to ring fence it from the massive liability created by developers.