The Only Economic Solution: Write-Downs For All

By Dr Finbar Markey
The pillars of society are intent on saving the banks. Not because they think the banks are good (according to them), but rather we are told that to not do so would bring compounding economic tragedy to our little nation. This is the “Institutional attitude” to both banking debts weighted upon the taxpayers shoulders, but also the “mortgage arrears” of home-owners, SMEs and Farmers.
The politicians present the spectre of moral hazard when ever “debt-write down” is mentioned. The response from the debt repudiation camps usually involves highlighting the true immorality of evictions and the twisted bastardisation of the meaning of the word “moral” by the banks and government.
The Judiciary, considering their social policy responsibilities (I kid you not) hold in their minds an “appalling vista” if home owners are not forced to give up their homes and life’s works to the banks. Their sleepless nights (ahem!) are filled with apocalyptic visions of empty ATMs and food riots, the Judges haunted by the whispers of those that appointed them, Fianna Fail and Fine Gael. The anti-eviction movement’s usual response describes genuine social policy concerns and a mass of legal-banking pathology embraced by a willing Judiciary.Rarely in the milieu of arguments do participants acknowledge the economic realities that will result if an across the board write down on mortgage debt is not agreed soon between lending institutions and mortgage holders. A failure by those in debt to collectively agitate and negotiate an across the board write down will only continue and exacerbate the suppression of our domestic economy; here are some visions of the future to consider….
  • Surely 100,000 homes and 1,000s of SME properties and farms hitting the markets over the next two years will only lead to a further collapse in property prices, irrespective of whether they are sold as bonds or not.
  • Surely jobs created over the next five years will not benefit the domestic economy as a significant amount of earnings that should normally be disposable income is instead sent to foreign finance houses in repayment of extortionate loans from another time and place.


  • Surely the intentions of banks, government and the judiciary to take possession of 100,000 homes over the coming eighteen months will cost the tax payer an enormous increase in spending on emergency housing, and this will only benefit the banks and sales industry who will gain further from the public purse.


  •  It is surely the case that in refusing to agree to an across the board write down on mortgage debt, government and banks are committing a large swathe of the population, including the most energetic of our domestic business people, to long-term isolation from credit markets.


The next time you meet a mouthy member of the “Institutions” that uphold the rottenness of this state, the I’m all right Jack sort, and they say “people should pay or face the consequences”, let them know how illogical their position really is. Morality and economic necessity are on the side of a write-down on mortgages…. they won’t listen unless those still able to pay but living as paupers join those who can’t pay and demand mortgage justice for all.
Source :