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Saturday 21 October 2017

Sinn Fein needs to convince the Irish voters, not the likes of Goldman Sachs

Goldman Sachs thinks Sinn Fein getting into government would be a bad thing for the Irish economy. Well there's a shock.

Goldman Sachs is the epicentre of capitalism. So much so that the investment bank made quite a large chunk of money on the 2008 collapse of the sub-prime mortgage market.

The methodology was complicated, but in essence their traders said 'you know, a lot of people are going to be unable to pay the debts on their homes. Let's place bets on them defaulting'.

All of which is legal and above board. But it's very, very capitalist. So too was their decision to pay their senior execs bonuses while the bank was being propped up by US government money - nothing illegal there.

But it's a fairly extreme form of capitalism, so extreme that even the US government choked a bit, causing some of the bank's senior execs to refuse their bonuses.

REVELATION

Now the bank's said that they think Sinn Fein's economic policies are no good. It's hardly a revelation that an investment bank with Goldman's pedigree would not be fans of a socialist party.

It's so predictable that you'd have thought it goes without saying.

The difficulty Gerry Adams, Mary Lou and the rest of Sinn Fein face isn't Goldman's criticism, it's explaining to the nation how we get from here to where they want us to be. 'Weaning' off the international money system is tricky.

At the first sign of the process beginning, all of those who might lend us money stop, and all of those who already have ask for it back.

Which tends to lead to economic chaos. None of which is good. But it may be worth it.

We just need Sinn Fein to ignore merchant banks like Goldman Sachs and get on with telling the rest of us how we get from here to there, and convincing us the operation won't kill the patient.

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