On Residential Mortages: Views from M.E. and the WSJ

Two stories today, 9th November 2010 on residential mortgages;

The first from RTÉ with Matthew Elderfiled

[

](Today in the press)

and the second from The Wall Street Journal

[

](Ireland's Next Blow: Mortgages - WSJ)

Blue Horseshoe

I thought this would be the interesting one
independent.ie/business/pers … 12561.html

sorry if done already

Mr. Lenihan is back half listening to Mr. McWilliams!

I bloody hope not, that a 10% interest rate…
Who would be paying this? Look at yourself in the mirror. Now turn around. Bend over and stick your head between your knees. If you can see your arse, it’s you…

But it’s only 10c! Surely we can afford that. Won’t sombody think of the children.

OK,

first off, the principle idea seems to be a good one in so far as assisting those who were paying but fall on ‘hard times’ over the short to medium term.

BUT, why the hell are all the other tax payers funding the banks with 10% interest rates on the “parked” principle element of the loan, which will later accrue interest at the prevailing rate once it reactivate? Which banker came up with that idea?

This isn’t parking any debt at all, it’s transferring it to the State at a lower risk to the bank and a higher interest rate! Someone needs to explain basic economics to Minister Lenihan.

Blue Horseshoe