Last night’s Tonight with Vincent Browne with economists Steve Keen and Constantin Gurdgiev and journalists Laura Noonan, Irish Independent banking correspondent, and Dan O’Brien. Irish Times Economics Editor.
We join the debate as the panel discuss the topical subject of debt relief and moral hazard.
Mind-altering confusion ensues.
Vincent Browne: “If you’re cutting household debt, it means that the
banks take a further hit.”
Laura Noonan: “It means that the banks take a hit and there’s also a real problem. There’s a real fairness argument to that because you hear all the time people, say who are on social welfare, who never borrowed for their houses they will ultimately end up getting lower social welfare payments because the taxpayer is paying the bank to take a hit.”
Constantin Gurdgiev: “That’s nonsense. Hold on a second, Laura. That is pure nonsense because what you’re assuming is that the taxpayer in this scheme will be recapitalising the banks and…”
Noonan: “The taxpayer owns the banks.”
Gurdgiev: “This is. Hold on a second. That is. You are.”