The Irish people were looted of tens of billions to bail out Anglo Irish bank, and it was done on the basis of lies and trickery. The Irish Independent newspaper has published secret recordings from 2008, which reveal two senior Anglo Irish executives – John Bowe, then head of capital markets, and Peter Fitzgerald, the former head of retail banking – spilling the beans.
In essence, John Bowe knew that the 7bn euros asked for in a bailout was nowhere near enough, and that the real bailout required was much higher. At the time, the 7bn requested was, he said, a figure “picked out of my arse”. The strategy was to play the government for total suckers, lure it and central bank in, to ensure “they had skin in the game”, so that when the full extent of the black hole was revealed the bailouts had to continue. It worked and the Irish people were looted of 30bn euros.
How could it be that billions of taxpayers money was commited without thorough and rigorous audits? Well this is how government spends money all the time. Yet again, Milton Friedman is proven right in that spending other people’s money on somebody else (which is all government spending) is the worst possible way of handling money. Those doing the spending have no care for the money or for what it buys.