Sunday, March 4, 2012

European Central Bank explaining

This is a repost from Franky.Aelbrecht. The video is from 19th January 2012, but it clearly demonstrates how the banking sector in general is evading to answer any critical question. This makes it impossible to do good journalism or to even inform the public.

In the video: journalist Vincent Browne asks Klaus Masuch "why the Irish people have to pay billions to unguaranteed bondholders for debts they didn’t take on". A question the Belgians should ask about the Dexia bank (second bailout in 2011), and the very question on the minds of all the tax payers in other bailout countries.

Excerpt of transcript by the Irish as quoted by keeptalkinggreece:
Vincent Browne, TV3: Did the taxi driver say that we were bewildered about having to pay unguaranteed bondholders for debts we didn’t take on? Simply to bail out European banks? If you had been asked that, what would you have said?
(There is now a procedural row about whether Vincent can ask a follow-up.)
Masuch from the ECB says he had answered a similar question from Browne two years ago, and says he understands that it’s a difficult decision, “no doubt about it”. But there are different aspects of the problem which must be balanced against each other, and in order to ensure confidence in the banking sector, those bonds must be repaid.
14.237a. Browne, again, says Ireland has to repay “billions on unguaranteed bonds” for a “defunct bank” simply to help the banks of other countries. Explain that to a taxi driver. The ECB’s Masuch says he’s answered that, but Browne disagrees.
“Why are the Irish people required to pay billions to unguaranteed bondholders, under threat from the ECB?… You people are intervening in this society and causing huge damage… Now could you explain why the Irish people are inflicted with this burden?” 
Masuch says he has “given an answer”.


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