Much is being made of the fact that the ECB is faciltating our ‘borrowing program’ for NAMA. There is even some FF spin that the money is ECB money, as opposed to debts and future obligations and reduced opportunities for the next generation.
Surely, by now even the gombeens in FF must realize that just because someone is prepared to lend you the money, it doesn’t mean that taking it is the smart thing to do or that the venture will be a sucess.
Lenders have their own agenda. They are concerned that they show a profit, not about your profit. The relationship that banks are always ‘prating’ on about is with your money; not with you, something they have in common with another very old profession.
The profit in this for the ECB is demonstrating the power and political cohesion of the Euro project. In the end, we are a very small part of a wider European problem. We are an interesting fiscal experiment to them.
If we screw this up, we are an easy write-off the deep pocketed but hard headed Germans, who will not hesitate to cut off the borrowing when it suits them.
They have not forgotten the 2 golden rules of banking, which FF have never heard of; don’t bet the farm & know when to stop putting good after bad.