Dublin Opinion

There was no general restriction of credit by the Irish banks to Irish business men or to potential housebuyers, a representative of the banks said yesterday. There was, however, a more careful examination of all applications, and particularly of credits for purely speculative purposes, which were examined in the light of the economic situation and on whether the present was the time for speculative borrowing.

The banks’ spokesman was replying to criticisms made to an Irish Times reporter that much of the present recession in trade was due to a “cutting down of credit facilities by the banks” and that, if this policy were abandoned unemployment in a number of Irish industries at present would be reduced.” (Irish Times, 19 January 1952)

The 1950s recession in Ireland was greatly influenced by the government’s decision to balance the books and deflate the economy. It is interesting, though, that the same excuses (and same solutions) which were proffered almost 60 years ago are being trotted out today.

This from yesterday’s Irish Times.

The first report from the Credit Review Office has found no evidence that AIB and Bank of Ireland are constraining the supply of credit to the small and medium enterprise (SME) market.

In his first quarterly report to the Minister for Finance, Credit Reviewer, John Trethowan said there was no evidence the two main banks were engaging in lending policies which inhibited the supply of credit to viable businesses.

However, his report raised concerns about some practices in the banks, including a lack of experience among some front line bank staff in dealing with SMEs as well as anecdotal reports of banks requesting that borrowers hold the amount of money requested for overdraft facilities on deposit with the bank.

While AIB and Bank of Ireland were found to be meeting their lending requirements on the whole, Mr Trethowan said there has been a contraction in the number of other lenders making loans into the business market.

I mean, it borders on farcical that after 18 months of government deflationary practices and policies - strategies which have sucked billions out of the Irish economy - the reason being put forward as to why there’s no money in the economy is that the banks aren’t giving businesses any money.

The almost unquestioned assumption is that the deflationary policies were correct, so the reason why there’s no money in the economy must be down to the banks not lending money. Oh, and consumers spending money they don’t have, with loans the banks aren’t giving out, will also stimulate the economy.

And journalists get paid to report this shit?

Ugh. Fuck this. I need some Gang of Four.