Latest OECD report- reduce wages and cut, cut cut

Short article on this here: … 32899.html

*The document said that the banking crisis needs to be resolved as a matter of priority, the public sector pay bill has to be cut and that welfare payments must be slashed by at least the same as the deflation evident in the economy

Overall the OECD recommends a more streamlined welfare system, cuts in the minimum wage and efforts to train and upskill the population to avoid long-term unemployment*

Some bullet points from the OECD

I wonder from this article what version will the unions come out with. The article is very clear, very precise and we all acknowledge something has to be done. But then the unions have some peculiar glasses on when they are reading it and see something we don’t

screw them and their disproven friedmanite Nonsense

OECD snippet on NAMA…

Now Lenihan will review this as a ringing endorsement. But it’s not. Overpaying and lack of risk-sharing makes Lenihan’s plan quite different.

This bit is also significant, IMO. The OECD are saying, if I read it correctly, your banks are stuffed. You’ve got to keep them going for a while. Don’t risk anything that doesn’t give you ownership. Nationalising them will lumber you with another couple of Angelos, with the added residential mortgage risk (“de gubbernment own it, why should I pay it, I pay tax”).

My view remains: become majority shareholder and dismember the banks - sell off or float working assets. Run down the rest. Split retail banking off into utility companies. Large majority shareholding will allow you to do all that nationalisation does, without having to take the risks onto the state’s balance sheet. All you have to do is survive until September 2010…

Once again, a rational response to Ireland couched in diplomatic language is spun as a ringing endorsement. What we need is some of these external institutions to get downright rude.