The Peoples Economy David McWilliams Day 1

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Questions Asked:

vince >> (All): Hi, can you explain how a central bank of a bust country (Ireland) can come up with €51bill to shore up the banks balance sheets? Are they using somebody savings????

Karl >> (All): If we continue on our current path, paying fully for bailout at 5.8%, on top of our day to day deficit, how long can we limp along for until default?

Angela McEntee >> (All): Hi David, Sorry this may seem like a very basic question, but do you think it is possible for Parties (FG/Lab or even FF) to re-negotiate the interest rate?

kevinmcinerney >> (All): How can we make it easier for students to get loans in the future. In canada I believe students are offered massive loans and they don’t even need a gaurantor! I want to do a two year masters in Maastricht. I worry that its just not possible anymore.

Conor Macken >> (All): The ATM red herring- what’s the best argument to deal with that?
Jim Beam >> (All): David, one thing that is never discussed is where all the money went to – i..e – Farmers/Land owners/Hoteliers sold land for billions – they lodged that into Irish banks, and where did it go then?

Karl >> (All): background to that q – if it can be put to main parties in v stark terms how long is left on the clock with current policy (with respected names signed up to it) it could be a powerful statement to restructure now

Jim Beam >> (All): Hi David, what is never discussed is where all the money went – i.e. Farmer/Hotelier/Land owner sold land to developers and speculators – seller lodged money into bank. Where did it go then? – is this money still in the system somewhere? Its like revolving doors.. did sellers put it all back into property and bank shares?

Juan Keville >> (All): Should we shut down NAMA now that we know the banks are insolvent?

Noel McCarron  >> (All): Have any of the political parties published their plans to deal with the banks and the banking system to ensure that this economic catastrophe does not happen again?

Angela McEntee >> (All): In Reality is it only a matter of time before we default?

Luke T >> (All): While I understand the reasons for the government not to default from the start on the loans, why didn’t we just say that we would repay, but not pay back the interest?

WayneS >> (All): The tax base has been destroyed by FF/PD’s over the past ten years, putting undue pressure on low income earners and social welfare recipients now that we are cutting to stabilise after the bailout. How can we broaden the tax base again?

vince >> (All): Tk David

feargal >> (All): what happens if the central irish bank goes bust?

conorob >> (All): With all this extra pressure from the EU, do you think keeping the corporate tax rate at its current rate is realistic?

brendan >> (All): Jim Bean , that is a Very Good Question !

Arthur Doohan >> (All): Have you seen the ‘debtoffset’ idea and what do you think of it..Angela McEntee >> (All): What would happen if we default?

vince >> (All): Hi David, last year you proposed that Ireland leave the Euro and reissue Punts. How would this work? Would we have a central bank system or would the currency be issued by the treasury? Or some other way?

feargal >> (All): how can we expect growth in a post peak oil world?
Carmel Burke >> (All): Are we creating a self fulfilling prophesy by talking about default e.g downrating by agencies again ?

Mimi >> (All): With regard to pressure from the EU in relation to our corporate tax, why is nobody screaming in relation to Irish tax payers bailing out European banks? Why should the Irish worker accept another hammering, it appears to me that the perception of European tax payers is that this is a pure bailout not the Irish tax payer bailing out bondholders. Is it too simplistic to simply say “sod off”?
Angela McEntee >> (All): I was in Uruguay after they defaulted and it was like a ‘ghost’ country, where nothing worked and nothing was open, no services etc, etc it really was incredible…is this what will happen to us

Wayne >> (All): David, are any of the Political Parties taking your advice? If so, which ones?Karl >> (All): Thanks for clear answer

kevinmcinerney >> (All): Thank you David. I will look into that :-DAngela
McEntee >> (All): David, thanks for your last answer, It was clear to me.  So are SF somewhat right when they say they will tell the ECB/IMF to in some way ‘sling their hook’…it seems a little far fetched to me.

Justin Collery >> (All): David, can you go through the mechanics of devorcing the bank debt from the soverign debt. Thanks. JC
Chris >> (All): Would it be fair to say that unless we get more money in people’s pockets we will not recover?

Conor Macken >> (All): Thanks for the economic advice David, am happy to offer PR advice to candidates on the same basis, /Phil

sean oleary >> (All): Can natural reserve rights be taken back or renogotiated ? To meet growth levels requiredbrendan >> (All): Well I’m off now to listen to the second half of a speech from a ‘Life Coach’!, will I be able to watch this back after ?
John Mullins >> (All): David, can you go over again how the guarantee that you proposed in 2008 differed from what was implemented by the government?

Kevin Mahon >> (All): What would your take be of Sinn Fein’s approach to not accepting the IMF loan and to use the Pension reserve fund to run the state until we re-enter the markets again? Do you think it is doable or is it a risk too far?

Arthur Doohan >> (All): the debt offset idea is where the family home owner can remortgage using discounted bank bonds to repay the original lender…and only owe what the paid for the bond

Mimi >> (All): Brilliant answer David! It’s unbelievably frustrating!!
o >> (All): Hi David How is all this still a banking problem when all the loans were insured through CDS etc Why are the banks not allowed to use these instrucments they paid for. i.e. a bank default should not cause major losses if insured correctly So is there a problem with bank securitization processes

Hopper >> (All): Nobody ever  admits to agreeing with what the government did on 30th Sept 2008. They must have got advice to gaurantee the bank debts – Who Gave This Advice? or was it unqualified poilitians and civil servants who made the decision

David Rodgers >> (All): Enda Kenny gave an interview to the WSJ last week where he said that he is waiting for the regulators to wrap up their stress tests of lenders next months “to see if there is another black hole in the banks”.  How likely do you think that a. the stress tests will be enough and b. there are more losses hidden on balance sheets.  Also, since EBS is raising its interest rates and the spectre of global inflation is raising its head, implying more potential rate rises, do you think that a mass default on mortgage debt is possible, or even likely?

David R >> (All): Post your manifesto for change. Hi David, for the average punter all this stuff is very confusing. I have a degree in business and I find it confusing 😉 There is a lot of info flying around, and different viewpoints. It would be great if you could centralise all these ideas for how to change things on your site. A clear manifesto for change that could be downloaded as a pdf and shared would be great. People could share it around get the momentum going.

Martin >> (All): David R: try this

Juan Keville >> (All): How should we use our vote in order to elect as many independent candidates as possible?

Siobhan >> (All): Can we prevent a similar  meltdown to that  which Uruguay experienced if we default?

asprilla1291 >> (All): Do you think there’s a simple way to create jobs? Job growth of the last decade has been in property and finance related sectors, including retail and services. Is it realistic to believe the government can save these failed business sectors?

Martin >> (All): Hi Juan, why not help out an Indie by knocking on doors with them?

john doyle >> (All): Hi David, I’m running in Dublin South as an Independent. My name is John Doyle, on the bank debt, can you tell me how best to appoach this issue at the doors. thanks, simple question I know!!

Angela McEntee >> (All): David, this is a really excellent forum and I think very useful, the only thing I would say is that maybe for the next time, the time of day could be changed. I am certain there are a lot of others who would join if the time was different.

Peter >> (All): Independents can rule but it needs the one with the highest profile (Shane Ross) to announce that if elected he will be organising a meeting amongst those elected with a view to having a unified voice in relation to national issues and will employ (say) Barry O’Callaghan to negotiate on their behalf with whatever party will listen to what needs to be done

Kevin Mahon >> (All): Any chance of your good self, Constantine, Paul Sommerville etc.etc. going over to Europe to play hardball?? Have any of the main parties considered this?

maria oreilly >> (All): Morning David , whats the talk about FG getting a loan from theFed. sounds like they are thinking outside the box, has Enda popped to your pplace lately for a cuppa. this sounds like oyur kind of idea.

Martin >> (All): Juan, thanks (not Martin though, no idea why that is commig up!) Kind of oustside the economics debate, but fair play to you.  If youo can even convince them to give you a 2nd or 3rd preference, thats a result I reckon

Peter >> (All): Enda is talking about borrowing from the USA –USA have no money surely China is who we should be borrowing from, why is NOBODY talking about this?

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